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Zymeworks (ZYME)
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Zymeworks (ZYME) AI Stock Analysis

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ZY

Zymeworks

(NASDAQ:ZYME)

Rating:49Neutral
Price Target:
$13.00
▼(-2.62%Downside)
Zymeworks' overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and cash flow challenges. However, positive sentiment from the latest earnings call, driven by revenue growth and strategic partnerships, provides some optimism. Technical indicators show a positive short-term trend, but valuation remains unattractive due to ongoing losses.
Positive Factors
Clinical Trial Success
Updated results from the P2 trial evaluating zanidatamab/chemotherapy in 1L HER2+ GEA strengthen confidence in the ability of zanidatamab/chemotherapy to demonstrate superiority vs. standard-of-care trastuzumab/chemotherapy.
Milestone Payments and Royalties
ZYME remains eligible for up to $1.53Bn in potential regulatory, development, and commercial milestone payments along with tiered royalties.
Regulatory Approval
Zanidatamab receives marketing authorization in the E.U. for the treatment of adults with previously treated, unresectable, or metastatic HER2-positive biliary tract cancer.
Negative Factors
Clinical Risks
Risks include clinical trial failures due to safety issues and clinical setbacks due to insufficient efficacy.
Investor Concerns
Investors have questioned data timeline pushes from 2H 2024 to 2Q 2025 and 2H 2025.
Market Competition
FRα-targeting ADC presentations provide a reminder of the crowded competitive landscape ZW191 will need to navigate.

Zymeworks (ZYME) vs. SPDR S&P 500 ETF (SPY)

Zymeworks Business Overview & Revenue Model

Company DescriptionZymeworks Inc. (ZYME) is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of multifunctional therapeutics, primarily in the field of oncology. The company leverages its proprietary technology platforms to develop therapies aimed at treating cancer and other serious illnesses. Zymeworks is headquartered in Vancouver, Canada, and operates primarily in the biotechnology and pharmaceuticals sectors.
How the Company Makes MoneyZymeworks generates revenue primarily through collaborative partnerships, licensing agreements, and milestone payments with other pharmaceutical and biotechnology companies. These partnerships often involve the co-development of therapeutic products, wherein Zymeworks provides its proprietary platforms and expertise in exchange for upfront payments, research funding, and potential milestone and royalty payments based on the successful development and commercialization of the resulting products. Additionally, the company may earn revenue from the direct commercialization of its own therapeutic candidates once they receive regulatory approval and are brought to market. Key partnerships with companies such as Merck and Eli Lilly have significantly contributed to its revenue streams.

Zymeworks Financial Statement Overview

Summary
Zymeworks is struggling financially with inconsistent revenue growth and persistent losses impacting profitability. The balance sheet shows a strong equity position but limited debt utilization. Cash flows are under pressure, reflecting the need for operational improvements to achieve sustainability.
Income Statement
30
Negative
Zymeworks has experienced significant volatility in its revenue and profitability. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 90.5%, but the net profit margin is negative at -121.7%, indicating substantial net losses. Revenue growth has been inconsistent, with a notable decline from 2022 to 2023, although there was recovery in 2024. EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges.
Balance Sheet
40
Negative
The balance sheet reveals a stable equity base with an equity ratio of 76.4% in TTM, which indicates strong capitalization. However, the debt-to-equity ratio is low at 0.057, suggesting limited leverage use. Return on equity is negative due to net losses, pointing to inefficiencies in generating shareholder value.
Cash Flow
35
Negative
Cash flow analysis shows negative free cash flow in TTM, indicating cash burn. The operating cash flow to net income ratio is 0.65, suggesting cash flow challenges but better than net income. Free cash flow remains negative, affecting the company's ability to fund operations without external financing.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue76.30M76.01M412.48M26.68M38.95M
Gross Profit65.11M-66.98M203.78M-172.86M-131.94M
EBITDA-105.42M-120.70M147.24M-206.09M-177.17M
Net Income-122.69M-118.67M124.34M-211.84M-180.55M
Balance Sheet
Total Assets463.09M580.88M648.73M389.13M538.38M
Cash, Cash Equivalents and Short-Term Investments225.78M374.33M492.23M252.61M426.35M
Total Debt18.48B26.72M28.11M32.33M8.64M
Total Liabilities124.32M116.07M155.77M140.04M128.45M
Stockholders Equity338.77B464.81M492.96M249.09M409.92M
Cash Flow
Free Cash Flow-113.11M-122.38M130.98M-205.74M-157.67M
Operating Cash Flow-110.04M-118.30M144.11M-192.45M-151.40M
Investing Cash Flow38.76M-207.25M-53.85M144.60M-43.44M
Financing Cash Flow-20.45M81.85M108.58M8.01M308.98M

Zymeworks Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.35
Price Trends
50DMA
12.31
Positive
100DMA
12.29
Positive
200DMA
13.16
Positive
Market Momentum
MACD
0.31
Negative
RSI
59.92
Neutral
STOCH
80.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYME, the sentiment is Positive. The current price of 13.35 is above the 20-day moving average (MA) of 12.82, above the 50-day MA of 12.31, and above the 200-day MA of 13.16, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 80.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZYME.

Zymeworks Risk Analysis

Zymeworks disclosed 73 risk factors in its most recent earnings report. Zymeworks reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Zymeworks Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$951.03M-50.67%41.86%10.48%
55
Neutral
$987.91M-63.17%-40.51%-35.07%
VIVIR
55
Neutral
$781.04M-44.59%-73.79%-5.24%
53
Neutral
$944.39M-56.31%-106.10%
50
Neutral
AU$2.48B3.22-57.47%2.70%36.73%13.67%
49
Neutral
$937.88M-29.80%85.05%15.96%
42
Neutral
$1.30B-51.85%0.71%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZYME
Zymeworks
13.35
3.00
28.99%
RCUS
Arcus Biosciences
9.33
-6.56
-41.28%
VIR
Vir Biotechnology
5.50
-4.73
-46.24%
NRIX
Nurix Therapeutics
12.69
-10.12
-44.37%
PHVS
Pharvaris
23.80
5.27
28.44%
MLYS
Mineralys Therapeutics, Inc.
14.62
0.04
0.27%

Zymeworks Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
Zymeworks Amends Warrant Agreement with EcoR1 Capital
Neutral
Jun 27, 2025

On June 26, 2025, Zymeworks Inc. amended its Pre-Funded Warrants agreement with EcoR1 Capital Fund, removing a limitation that restricted the exercise of warrants if it led to ownership exceeding 19.99% of the company’s shares. This amendment facilitated the full exercise of 5,086,521 Pre-Funded Warrants by EcoR1, resulting in the issuance of 5,086,480 shares of common stock, increasing the total outstanding shares to 74,844,505 as of June 27, 2025. The transaction was exempt from registration under the Securities Act of 1933.

The most recent analyst rating on (ZYME) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Zymeworks Updates Communication Channels for Stakeholders
Neutral
May 8, 2025

Zymeworks announces that it communicates material information through various channels, including filings with the Securities and Exchange Commission, press releases, and social media platforms. The company encourages stakeholders to review these sources for important updates, as they may contain significant information about the company’s operations and product candidates.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025