Zymeworks (ZYME) Q3 2024 earnings summary

Executive summary

• Advanced a differentiated pipeline with bispecific antibodies and ADCs, initiating global Phase 1 trials for ZW171 and ZW191, and planning additional INDs for ZW220 and ZW251 in 2025.

• Zanidatamab, a HER2 bispecific antibody, is under regulatory review in the US, EU, and China for second-line BTC, with a PDUFA date of November 29, 2024, and potential launches in 2025.

• Strategic partnerships with Jazz and BeiGene provide significant milestone and royalty opportunities, supporting a projected cash runway into the second half of 2027.

• Presented promising preclinical data for ZW220 and ZW251, highlighting the potential of proprietary ADC payloads.

• Completed the first $30 million tranche of a $60 million share repurchase program, buying back over 2.5 million shares at an average price of $11.79.

Financial highlights

• Revenue for the nine months ended September 30, 2024, was $45.3 million, down from $59.1 million in 2023, mainly due to lower development support and drug supply revenue from Jazz.

• Net loss for the nine months ended September 30, 2024, was $99.2 million ($1.30 per diluted share), improved from $104.2 million in 2023.

• Operating expenses decreased 8% year-over-year to $160.2 million, driven by lower R&D and G&A costs.

• Recorded a non-cash impairment charge of $17.3 million due to discontinuation of the zanidatamab zovodotin program.

• Cash, cash equivalents, and marketable securities totaled $374.9 million as of September 30, 2024.

Outlook and guidance

• Cash and anticipated milestone payments expected to fund operations into the second half of 2027, with potential extension from future partnerships.

• IND filings for ZW220 and ZW251 anticipated in 2025; trispecific T-cell engager IND filing projected for first half of 2026.

• Awaiting PDUFA date of November 29, 2024, for zanidatamab in second-line HER2-positive BTC in the US, with launches in the US and China expected in 2025.

• Top-line data from the HERIZON-GEA-01 phase 3 study expected in Q2 2025.

• R&D Day scheduled for December 12, 2024, to provide updates on pipeline and strategy.