Zymeworks (ZYME) Wells Fargo 21st Annual Healthcare Conference summary

Recent achievements and outlook

• Achieved FDA approval for zanidatamab in first-line GEA, establishing it as the new standard of care for HER2-positive patients and projecting $3–5 billion in annual peak sales.

• Focused on building a sustainable business with durable, risk-adjusted cash flows and responsible growth.

• Commercial partners have increased sales projections, reflecting strong market confidence.

• Recent $250 million milestone from GEA approval strengthens balance sheet and provides capital deployment flexibility.

• Early launch metrics for GEA will focus on patient access and therapy uptake in the first quarters.

Strategic pillars and capital allocation

• Business model centers on royalty growth, strategic acquisitions, and internal R&D, all supporting long-term value.

• Royalties from zanidatamab and potential future assets like pasritamig are key value drivers.

• Recent acquisition of Theravance, expected to close in the second half of the year, diversifies revenue and adds commercial assets.

• Capital allocation is flexible, with recent funds used for share buybacks and acquisitions.

• Preference for deploying cash to maximize shareholder value, avoiding excess cash retention.

Differentiated strategy and challenges

• Operates at the intersection of royalty aggregation and R&D innovation, unlike traditional royalty or biotech firms.

• Ability to pursue multi-component acquisitions and create value from both royalties and internal innovation.

• Challenges include communicating the integrated business model to investors and aligning internal and external perceptions.

• Capital is allocated to areas with the highest potential benefit for shareholders.