Zymeworks (ZYME) Q3 2025 earnings summary

Executive summary

• Phase 1 data for ZW191 ADC showed promising safety and efficacy, with 53% overall and 64% gynecological cancer response rates, and low rates of serious adverse events in heavily pretreated patients as of September 2025.

• First patient dosed in Phase 1 trial of ZW251 for hepatocellular carcinoma in October 2025, with active recruitment ongoing.

• $25 million milestone revenue recognized from J&J for pasritamig entering Phase 3, with $1 million in royalties from Jazz and BeOne for ZiiheraⓇ sales in 3Q 2025; additional $434 million in potential milestones and royalties remain.

• Share repurchases of $22.7 million completed as of November 4, 2025, reflecting confidence in long-term outlook and capital allocation discipline.

• Board and leadership changes implemented, including appointment of Acting Chief Development Officer and board refresh to align with strategic growth.

Financial highlights

• Q3 2025 total revenue was $27.6 million, up 73% year-over-year from $16 million, driven by a $25 million J&J milestone and $1 million in royalties from Jazz and BeOne.

• Operating expenses were $49.7 million, down slightly year-over-year, with R&D expenses at $35.6 million and G&A at $14.1 million.

• Net loss narrowed to $19.6 million in Q3 2025 from $29.9 million in Q3 2024.

• Cash, cash equivalents, and marketable securities totaled $299.4 million as of September 30, 2025, not including the $25 million J&J milestone to be received in Q4.

• $22.7 million spent on share repurchases, acquiring 1,439,068 shares at an average price of $15.80.

Outlook and guidance

• Existing cash resources, plus anticipated regulatory milestones, expected to fund operations into the second half of 2027.

• Top-line progression-free survival data from the HERIZON-GEA-01 study of zanidatamab expected in Q4 2025.

• Dose optimization for ZW191 in ovarian cancer to begin in Q4 2025.

• IND submissions planned for ZW209 and ZW1528 in 2026.

• Continued focus on advancing differentiated R&D programs and leveraging partnerships for capital and risk mitigation.