H.C. Wainwright raised its price target on Zymeworks shares to $55 from $51, citing the U.S. Food and Drug Administration’s approval of two zanidatamab-based regimens for adults with unresectable locally advanced or metastatic HER2-positive gastroesophageal adenocarcinoma, regardless of PD-L1 expression.
The approval, based on Phase 3 HERIZON-GEA-01 trial results, showed zanidatamab-containing regimens extended median progression-free survival to 12.4 months versus 8.1 months for the control group receiving Herceptin plus chemotherapy. Median overall survival reached 26.4 months in the zanidatamab, Tevimbra and chemotherapy arm, compared with 19.2 months in the control arm.
Zymeworks’ stock was trading at $27.47 with a market capitalization of $1.95 billion, near its 52-week high of $30.50. The company’s shares have gained 85% over the past year. H.C. Wainwright also increased its probability of approval for zanidatamab in first-line gastroesophageal cancer to 100% and raised its peak market penetration estimate to 75%.
The FDA clearance triggers a $250 million milestone payment from Jazz Pharmaceuticals to Zymeworks under their collaboration agreement. H.C. Wainwright also noted that Zymeworks’ revenue growth is forecast to surge 188% in fiscal 2026.
Zymeworks entered a definitive agreement to acquire Theravance Biopharma for $17 per share in cash, valuing the deal at approximately $929 million. Analysts at Citizens, B. Riley and Stifel have price targets of $32, $40 and $47, respectively, with all maintaining Buy ratings. The consensus on Wall Street remains a Strong Buy, with targets ranging from $31 to $58.
