Zymeworks Inc. shares advanced to a 52-week high of $29.81 on Tuesday, extending a 10.36% weekly gain and a 97.46% year-over-year increase. The biotechnology company’s surge followed the announcement of a definitive agreement to acquire Theravance Biopharma Inc. for approximately $929 million in cash.
Under the terms of the deal, Zymeworks will pay $17.00 per share for Theravance Biopharma, adding YUPELRI—a long-acting muscarinic antagonist approved for the treatment of chronic obstructive pulmonary disease—to its portfolio. The transaction also includes a non-tradeable contingent value right, granting Zymeworks 20% of any future monetization of ampreloxetine within a decade, while retaining 80% of proceeds.
Analysts largely maintained positive outlooks for Zymeworks following the acquisition. B. Riley reiterated a Buy rating with a $40 price target, while Stifel maintained its Buy rating with a $47 target. H.C. Wainwright also kept its Buy rating and set a $46 price target, citing new clinical data for ZW191 presented at a recent medical conference. BTIG, however, downgraded Theravance Biopharma from Buy to Neutral in response to the deal.
The acquisition underscores Zymeworks’ strategic expansion in the biopharmaceutical sector amid strong investor confidence, as evidenced by the stock’s recent performance and analyst projections.
