ZYME · Zymeworks Inc.

Zymeworks reported first quarter 2026 results reflecting a strategic shift, with total revenue declining to $2.4 million from $27.1 million in the prior year quarter, primarily due to the absence of non-recurring clinical milestone payments received in 2025 and reduced development support from Jazz, offset partially by $1.6 million in royalty revenue from Ziihera net sales. R&D expenses decreased slightly to $34.5 million from $35.7 million, driven by reduced spending on later-stage programs exceeding investments in early-stage clinical and preclinical activities, including ZW191 and the RAS inhibitor ADC platform. G&A expenses fell to $15.1 million from $17.0 million due to lower professional fees and IT costs post prior initiatives, though partially offset by leadership transition costs. Other income dropped to $0.8 million, impacted by $2.1 million interest expense from the March 2026 Royalty Pharma note financing. Net loss widened to $44.2 million from $22.6 million, aligning with revenue dynamics. Balance sheet remains strong with $403.8 million in cash resources as of March 31, 2026, supporting operations beyond 2028 even with full $125 million share repurchase execution and assuming $440 million in anticipated GEA approval milestones from U.S., Europe, Japan, and China. The company reiterated non-GAAP adjusted gross operating expense guidance of $300 million over 2026-2028, with 2026 expected ~20% below 2025's $170.5 million, emphasizing cost discipline. Key catalysts include zanidatamab's U.S. PDUFA date of August 25, 2026 under Priority Review for first-line HER2+ GEA, positioning for $250 million Jazz milestone and commercial royalties, plus China progress for $15 million BeOne milestone. ZW191 Phase 1 data showed 56% confirmed ORR in PROC, with strong activity across FRα levels and Fast Track designation. New leadership appointments enhance capital allocation and R&D execution amid royalty aggregation strategy. Share repurchases utilized $95.8 million to acquire 3.93 million shares at $24.37 average, reducing outstanding shares to 73 million.