Citizens reiterated its Market Outperform rating on Zymeworks Inc. (NASDAQ: ZYME) on Wednesday, maintaining a $32 price target with a bull case of $40 and bear case of $15.
The stock last traded at $27.47, reflecting an 85% return over the past year. Analysts at Citizens highlighted Zymeworks’ pipeline advancements and the recent FDA approval of zanidatamab for first-line gastroesophageal adenocarcinoma as primary catalysts.
Zymeworks’ pro-forma cash position stands at $572.5 million, with a current ratio of 6.32. The company’s market capitalization is approximately $1.95 billion. Analysts at B. Riley, Stifel, and H.C. Wainwright have set price targets of $40, $47, and $46, respectively, all with Buy ratings.
Zymeworks is also advancing ZW191 and ZW251 in clinical development as part of its pan-RAS inhibitor antibody-drug conjugate platform. The company’s zanidatamab royalties are expected to contribute meaningfully to revenue in the coming years.
Separately, Zymeworks announced a definitive agreement to acquire Theravance Biopharma Inc. (NASDAQ: TBPH) for $17 per share in cash, totaling approximately $929 million. Theravance’s YUPELRI, a treatment for chronic obstructive pulmonary disease, has been marketed in the U.S. since 2019.
Management continues an aggressive share buyback program, reflecting confidence in the company’s financial position and growth prospects.
