H.C. Wainwright raised its price target on Zymeworks to $55 from $51 and maintained a buy rating after the U.S. Food and Drug Administration approved two zanidatamab-based regimens for previously treated adults with locally advanced unresectable or metastatic HER2-positive gastroesophageal adenocarcinoma.
The FDA clearance covers zanidatamab in combination with chemotherapy and in combination with Tevimbra and chemotherapy, regardless of PD-L1 expression. Analysts at the firm raised the probability of approval for Zymeworks’ lead asset to 100%, citing the regulator’s decision.
Zymeworks’ shares were trading at $27.47, giving the company a market capitalization of approximately $1.95 billion. The stock has gained 85% over the past year and remains below its 52-week high of $30.50. Wall Street price targets for the biotech range from $31 to $58, according to the firm.
The FDA approval triggers a $250 million milestone payment to Zymeworks from Jazz Pharmaceuticals under a 2021 collaboration agreement. H.C. Wainwright also increased its peak market penetration projection for Ziihera to 75% in the first-line gastroesophageal adenocarcinoma segment.
Median progression-free survival in the Phase 3 HERIZON-GEA-01 trial reached 12.4 months for zanidatamab-containing regimens, compared with 8.1 months for the control arm of Herceptin plus chemotherapy. Median overall survival for the zanidatamab-Tevimbra-chemotherapy combination was 26.4 months versus 19.2 months for the control.
Second interim overall survival data from the trial is expected in the third quarter of 2026. Zymeworks also projected fiscal 2026 revenue growth of 188%, though the company did not specify the basis for the forecast.
Other analysts have set varied targets: Citizens at $32 with an outperform rating, B. Riley at $40, and Stifel at $47. Zymeworks is also pursuing a $929 million cash acquisition of Theravance Biopharma at $17.00 per share, a deal announced earlier this year.
