Zymeworks sees cash runway sufficient into 2H 2027

Zymeworks (ZYME) provided an update on key strategic priorities for 2024 and 2025. Zymeworks partner Jazz Pharmaceuticals (JAZZ) presented positive pivotal Phase 2b trial data evaluating zanidatamab in HER2-amplified BTC and initiated rolling Biologics License Application submission for accelerated approval in second-line BTC with completion expected in the first half of 2024. As of December 31, 2023, Zymeworks had cash resources on hand of approximately $455M. Collaboration agreements with Jazz Pharmaceuticals and BeiGene represent important components of the commercialization strategy for zanidatamab and the strategy is to continue to expand future product pipeline. Under the company’s amended agreement with Jazz, it has received an aggregate of $375M in proceeds to date, and remains eligible to receive up to $525M upon the achievement of certain regulatory milestones and up to $862.5M in potential commercial milestone payments, and tiered royalties between 10% and 20% on future zanidatamab sales, pending regulatory approval of zanidatamab. The company’s collaboration agreement with BeiGene in certain Asia Pacific regions remains important given the high prevalence of BTC and GEA in the APAC region. Through the collaboration with BeiGene on zanidatamab, the company remains eligible to receive up to $195M in additional development and commercial milestones together with tiered royalties ranging from the high single digit percentages up to 19.5% on net sales of zanidatamab, pending regulatory approval. Expects to submit INDs for ZW171 and ZW191 in 2024, and INDs for ZW220 and ZW251 in 2025. During 2024, expects to nominate the final ‘5 by 5’ product candidate for preclinical development with an expected IND filing in 2026. Believes that zanidatamab zovodotin has the potential to become a novel treatment option for advanced HER2+ cancers, supporting further but limited clinical development. It will be evaluated in a planned Phase 2 study in HER2 over-expressing NSCLC patients in combination with a checkpoint inhibitor.