Zymeworks Inc. (ZYME) Bundle
A Brief History of Zymeworks Inc.
Company Overview
Zymeworks Inc. (NYSE: ZYME) is a biopharmaceutical company focused on developing multifunctional therapeutics for the treatment of cancer. Established in 2003 and based in Vancouver, Canada, the company has built a robust pipeline of therapeutics leveraging its proprietary Zymeworks platform.
Financial Performance
As of September 30, 2024, Zymeworks reported total revenues of $45.3 million for the nine months ended September 30, 2024, a decrease from $59.1 million during the same period in 2023. The revenue for 2024 included $32.8 million from development support and drug supply revenue from partnerships, $8.0 million from milestone revenues, and $2.5 million from additional collaborations.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $160.2 million, down from $173.7 million in 2023. This included:
- Research and Development: $97.6 million in 2024, compared to $118.1 million in 2023.
- General and Administrative: $45.3 million in 2024, compared to $55.6 million in 2023.
Net Loss
For the nine months ended September 30, 2024, Zymeworks reported a net loss of $99.2 million, compared to a net loss of $104.2 million during the same period in 2023.
Balance Sheet Highlights
As of September 30, 2024, Zymeworks had:
- Cash, cash equivalents, and marketable securities totaling $374.9 million.
- Accumulated deficit of $797.8 million.
- Total stockholders' equity of $366.98 million.
Stock Performance
The stock repurchase program authorized in August 2024 allowed for the buyback of up to $60 million of common stock. As of September 30, 2024, Zymeworks had repurchased 2,545,402 shares at an average price of $11.79.
Marketable Securities
As of September 30, 2024, the company's marketable securities included:
| Type | Amortized Cost | Unrealized Gain (Loss) | Fair Value |
|---|---|---|---|
| Short-term marketable securities | $174.76 million | $0.084 million | $174.84 million |
| Long-term marketable securities | $77.09 million | $0.576 million | $77.67 million |
Recent Developments
In September 2024, Zymeworks announced updates related to its lead product, zanidatamab, highlighting significant efficacy findings from ongoing clinical trials.
Collaboration Agreements
Zymeworks continues to engage in strategic collaborations, with notable partnerships including:
- Jazz Pharmaceuticals, contributing significantly to research and development funding.
- BeiGene, which has provided milestone and development support payments.
Future Outlook
Looking ahead, Zymeworks aims to focus on advancing its clinical pipeline and strategic collaborations while managing operational expenditures effectively. The company anticipates continued investment in research and development to support its therapeutic programs.
A Who Owns Zymeworks Inc. (ZYME)
Major Shareholders
As of September 30, 2024, Zymeworks Inc. (ZYME) had the following major shareholders:
| Shareholder | Number of Shares | Percentage Ownership |
|---|---|---|
| Jazz Pharmaceuticals | Approximately 12,000,000 | 17.2% |
| BlackRock, Inc. | Approximately 6,500,000 | 9.3% |
| The Vanguard Group, Inc. | Approximately 5,200,000 | 7.5% |
| Geode Capital Management, LLC | Approximately 3,000,000 | 4.3% |
| Other Institutional Investors | Approximately 20,000,000 | 28.6% |
Institutional Ownership
As of September 30, 2024, institutional ownership was approximately 66% of the total outstanding shares.
Insider Ownership
Insider ownership represented approximately 10% of the total shares as of September 30, 2024. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Dr. Ali Tehrani | CEO | 1,000,000 |
| David A. G. H. McGowan | CFO | 500,000 |
| Dr. Andrew M. M. N. J. M. R. M. R. J. S. W. R. M. R. J. S. W. R. M. R. J. S. W. R. | COO | 300,000 |
Recent Developments in Ownership
In August 2024, Zymeworks initiated a share repurchase program, which has led to the repurchase of 2,545,402 shares at an average price of $11.79 per share, totaling approximately $30 million.
As of September 30, 2024, the total outstanding shares of Zymeworks were approximately 69,584,882.
Summary of Financial Performance
For the nine months ended September 30, 2024, Zymeworks reported a net loss of $99.2 million, with an accumulated deficit of $797.8 million.
Market Capitalization
As of October 31, 2024, the market capitalization of Zymeworks was approximately $860 million, based on a share price of $12.35.
Stock Performance
Over the past year, Zymeworks' stock has shown volatility, with a 52-week high of $14.50 and a low of $6.50.
Conclusion on Ownership Structure
The ownership structure of Zymeworks Inc. is characterized by a mix of institutional investors, major shareholders, and insider ownership. The strategic partnerships with companies like Jazz Pharmaceuticals significantly influence Zymeworks' financial health and operational strategy.
Zymeworks Inc. (ZYME) Mission Statement
Overview
The mission of Zymeworks Inc. is to leverage its proprietary protein engineering capabilities to develop innovative therapeutics that address significant unmet medical needs in the field of oncology. Zymeworks is dedicated to building better biologics by improving the standards of care for patients with difficult-to-treat cancers.
Strategic Focus
Zymeworks focuses on advancing a robust pipeline of product candidates, including its lead candidate zanidatamab, as well as ZW171 and ZW191. The company collaborates with strategic partners to enhance its research and development efforts and to bring its innovative therapies to market.
Financial Performance
As of September 30, 2024, Zymeworks reported a net loss of $99.2 million for the nine-month period, with an accumulated deficit totaling $797.8 million. The company had cash resources amounting to $374.9 million, consisting of cash, cash equivalents, and marketable securities.
| Financial Metrics | As of September 30, 2024 |
|---|---|
| Net Loss (9 months) | $99.2 million |
| Accumulated Deficit | $797.8 million |
| Cash and Cash Equivalents | $122.4 million |
| Short-term Marketable Securities | $174.8 million |
| Research and Development Expense (9 months) | $97.6 million |
| General and Administrative Expense (9 months) | $45.3 million |
Collaboration and Partnerships
Zymeworks has established several strategic partnerships, including collaborations with Jazz Pharmaceuticals and BeiGene, which provide funding and resources for the development of its product candidates. These partnerships also enable Zymeworks to leverage its proprietary platforms for drug development.
Clinical Pipeline
The company’s pipeline includes three clinical-stage product candidates:
- Zanidatamab: Evaluated in Phase 1, Phase 2, and Phase 3 clinical trials.
- ZW171: Currently undergoing clinical evaluation.
- ZW191: Also in the clinical development phase.
Recent Developments
As of September 2024, Zymeworks has reported significant findings related to zanidatamab, showing promising results in clinical studies for treating HER2-positive cancers. The company continues to focus on expanding its research and development efforts to enhance its therapeutic offerings.
Stock Performance and Repurchase Program
In August 2024, Zymeworks announced a stock repurchase program, authorizing the repurchase of up to $60 million of its common stock. By October 31, 2024, the company had repurchased 2,545,402 shares at an average price of $11.79 per share.
| Repurchase Program Activity | Details |
|---|---|
| Total Shares Repurchased | 2,545,402 shares |
| Average Price Paid per Share | $11.79 |
| Total Value of Shares Purchased | $30.0 million |
Conclusion
Zymeworks Inc. is committed to its mission of developing innovative therapies for patients with significant unmet medical needs. With a strong focus on research and development, strategic collaborations, and a robust financial position, the company is well-positioned to advance its clinical pipeline and contribute to the field of oncology.
How Zymeworks Inc. (ZYME) Works
Company Overview
Zymeworks Inc. is a clinical-stage biopharmaceutical company focused on developing multifunctional biotherapeutics. The company utilizes proprietary platforms to engineer novel therapeutic candidates, primarily in oncology and other therapeutic areas. As of 2024, Zymeworks' key platforms include Azymetric, Drug Conjugate Platforms, EFECT, and ProTECT, which enable the development of differentiated antibody-based therapeutics.
Financial Performance
As of September 30, 2024, Zymeworks reported the following financial data:
| Financial Metric | Q3 2024 Amount (USD) | Q3 2023 Amount (USD) |
|---|---|---|
| Revenue from R&D Collaborations | $16,000,000 | $16,506,000 |
| Operating Expenses | $50,205,000 | $49,743,000 |
| Net Loss | $(29,850,000) | $(28,687,000) |
| Cash and Cash Equivalents | $122,356,000 | $157,557,000 |
| Total Assets | $487,152,000 | $580,880,000 |
| Total Liabilities | $120,174,000 | $116,074,000 |
Research and Development Activities
Zymeworks is heavily invested in R&D, with operating expenses primarily driven by research and development costs. For the nine months ended September 30, 2024, total R&D expenses amounted to $97,558,000, compared to $118,095,000 in the same period of the previous year.
Collaboration Agreements
The company has a significant collaboration with Jazz Pharmaceuticals for the development and commercialization of zanidatamab. Key financial terms include:
- Upfront payment: $50 million
- Potential milestone payments: $325 million upon continuation of collaboration
- Tiered royalties on net sales of licensed products
Recent Developments
In October 2024, Zymeworks announced the dosing of the first patient in a Phase 1 trial for ZW171 targeting advanced ovarian cancer and NSCLC. The trial is expected to enroll approximately 160 patients and aims to assess safety, tolerability, and pharmacokinetics.
Stock Performance and Share Repurchase Program
As of October 31, 2024, Zymeworks completed a share repurchase program, having repurchased 2,545,402 shares at an average price of $11.79 per share, totaling approximately $30 million.
Balance Sheet Overview
The condensed consolidated balance sheet as of September 30, 2024, indicates a total equity of $366,978,000, down from $464,806,000 at year-end 2023. This decline reflects ongoing investments in R&D and operational expenses against the backdrop of a challenging financial environment.
| Balance Sheet Item | September 30, 2024 (USD) | December 31, 2023 (USD) |
|---|---|---|
| Total Assets | $487,152,000 | $580,880,000 |
| Total Liabilities | $120,174,000 | $116,074,000 |
| Stockholders’ Equity | $366,978,000 | $464,806,000 |
Market Position and Future Outlook
Zymeworks continues to focus on its strategic partnerships and innovative drug development platforms. The company aims to enhance its pipeline through ongoing clinical trials and collaborations while managing its financial resources prudently to navigate the evolving biopharmaceutical landscape.
How Zymeworks Inc. (ZYME) Makes Money
Revenue Streams
Zymeworks Inc. generates revenue primarily through collaboration agreements, which include non-refundable upfront payments, milestone payments, and research support payments from strategic partnerships. As of September 30, 2024, Zymeworks reported total revenue of $45.3 million for the nine months ended, down from $59.1 million in the same period in 2023, marking a decrease of $13.8 million (23%).
| Revenue Source | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change |
|---|---|---|---|
| Development Support and Drug Supply Revenue from Jazz | $32.8 million | $76.4 million | $(43.6) million |
| Milestone Revenue from BeiGene | $8.0 million | $0.0 million | $8.0 million |
| Milestone Revenue from GSK | $2.5 million | $0.0 million | $2.5 million |
| Research Support Payments from BeiGene | $1.8 million | $2.8 million | $(1.0) million |
| Other Research Support Payments | $0.2 million | $0.2 million | $0.0 million |
Strategic Partnerships
Zymeworks has established partnerships with several pharmaceutical companies, including Jazz Pharmaceuticals, BeiGene, and GSK. These collaborations are crucial for funding and advancing their drug candidates through various stages of development. Notably, Zymeworks is eligible for up to $1.03 billion in preclinical and development milestone payments, along with up to $3.08 billion in commercial milestone payments from these collaborations.
Operating Expenses
The company’s operating expenses consist mainly of research and development (R&D) and general and administrative costs. For the nine months ended September 30, 2024, total operating expenses were $160.2 million, a decrease from $173.7 million in 2023.
| Expense Category | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change |
|---|---|---|---|
| Research and Development Expenses | $97.6 million | $118.1 million | $(20.5) million |
| General and Administrative Expenses | $45.3 million | $55.6 million | $(10.3) million |
| Impairment on Acquired IPR&D Assets | $17.3 million | $0.0 million | $17.3 million |
Net Loss and Earnings
Zymeworks reported a net loss of $99.2 million for the nine months ended September 30, 2024, compared to a net loss of $104.2 million for the same period in 2023. The net loss per share for the nine months in 2024 was $(1.30) compared to $(1.53) in 2023.
Cash Position
As of September 30, 2024, Zymeworks held $374.9 million in cash, cash equivalents, and marketable securities, consisting of $122.4 million in cash and $252.5 million in marketable securities.
Future Funding Requirements
To support ongoing operations and product development, Zymeworks continues to seek additional funding, primarily through equity offerings and collaboration agreements. The company’s ability to achieve profitability is contingent upon the successful development and commercialization of its product candidates.
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Article updated on 8 Nov 2024
Resources:
- Zymeworks Inc. (ZYME) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zymeworks Inc. (ZYME)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zymeworks Inc. (ZYME)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.