Zymeworks said on Tuesday that its cash flow and the commercial potential of zanidatamab are central to its strategy, as the company positioned itself between a royalty business and a research-driven biotech. Speaking at the Wells Fargo 21st Annual Healthcare Conference on September 8, 2026, Chairman and CEO Ken described a model built around royalty growth, strategic acquisitions and internal research and development.
A key commercial development was U.S. Food and Drug Administration approval of zanidatamab, which triggered a $250 million milestone payment. Jazz Pharmaceuticals raised its peak sales view for the drug to $3 billion to $5 billion a year across indications, while Zymeworks noted that trastuzumab, which had been the standard of care for 12 years, reached historical peak sales of $7 billion. Zanidatamab required about four and a half years of clinical studies before approval, and Jazz is expected to report Phase 3 breast cancer data in late 2027 or 2028. The HER2-positive gastric and gastroesophageal adenocarcinoma population represents about 20% of all gastroesophageal adenocarcinoma cases.
Zymeworks also detailed its balance-sheet actions. In 2024, the company raised $600 million in non-recourse debt through two transactions: $250 million with Royalty Pharma at roughly a 10% cost of capital and $250 million to $350 million with OMERS at an 8% to 9% all-in cost of capital. Management cited a current ratio of 6.32 and said the company has not raised equity in 4.5 years. Since the summer of 2024, Zymeworks has repurchased 10.5 million shares for about $215 million at an average price of about $9 per share; the company said it would have been the second-largest shareholder in its own stock if the shares had not been cancelled.
The Theravance Respiratory Company acquisition is another pillar of the strategy. Total consideration is valued at more than $900 million, including debt financing, and the deal is expected to close in the second half of 2024. Management said the expected internal rate of return is in the mid-teens and noted that Viatris holds a 35% profit-sharing joint venture related to YUPELRI.
On the pipeline, Zymeworks said ZW209, a DLL3 CD3 CD28 trispecific T-cell engager, is scheduled for an investigational new drug filing in 2026. The company also mentioned ZW1528, a bispecific antibody targeting the IL-4 receptor and IL-33, and disclosed three pan-RAS-targeted antibody-drug conjugate programs at the American Association for Cancer Research meeting in April 2024. It also referenced antibody-drug conjugate assets, including T-DXd, and partnered or competitive assets, including J&J's pasritamig for prostate cancer and BeiGene's tislelizumab.
Zymeworks shares closed at $28.11, down $1.08, or 3.70%. Wall Street consensus implied 34% upside potential, and the company forecast a swing to profitability in 2026 with expected earnings of $1.26 per share, compared with a trailing 12-month loss of $2.01 per share.
