Zymeworks Inc. (ZYME)

Zymeworks licensed its DLL3 cancer drug candidate ZW209 to Roche on 22 October 2026 1. Roche is to pay $55.0 million upfront and $40.0 million when a Phase Ib trial starts, plus up to $718 million in milestones, or up to $813 million in all (computed) 1.

The license starts only after United States antitrust clearance 1. Roche pays for the opening human trial that Zymeworks will run, and Zymeworks is eligible for royalties from the high single digits to the mid-teens on any sales 1.

The FDA approved Ziihera, a cancer antibody Zymeworks discovered and its partner Jazz sells, for first-line HER2-positive stomach and esophageal cancer on 25 August 2026 517. That earned Zymeworks a $250 million milestone payment 5.

On 23 September 2026 Zymeworks completed its purchase of Theravance Biopharma, adding YUPELRI, a medicine promoted in hospitals, to its royalty income 34. The company then said it expects 2026 revenue of $278 million to $292 million 4.

The latest quarterly report on file covers the three months to 30 June 2026, before these deals, when revenue was $4.6 million 7. Third-quarter results are due on 9 November 2026 11.

Zymeworks began as a Canadian company incorporated on 8 September 2003 8. It became a Delaware company on 13 October 2022 8.

It listed publicly in 2017 and has since funded itself mainly through share offerings and private placements 6. Partner payments under license agreements added to that funding 6.

In December 2014 it signed with Celgene, now part of Bristol Myers Squibb, to make two-target antibodies on its Azymetric platform 8. In December 2015 it signed with GSK for up to ten engineered antibodies 8.

The turning point was zanidatamab, its own two-target antibody against the HER2 protein 8. In November 2018 BeOne received rights in Asia outside Japan, Australia and New Zealand, for a $40.0 million upfront payment 8.

Jazz took the rest of the world in a deal reported to the SEC in October 2022 and amended in 2023 5. Jazz paid $50.0 million upfront and a further $325.0 million after it chose to continue following a trial readout 8.

In May 2023 Zymeworks handed Jazz the staff, contracts and assets that ran the zanidatamab trials 8. That is why development-support revenue from Jazz has kept falling since 8.

The FDA gave Ziihera accelerated approval for biliary tract cancer in November 2024 8. Revenue was $76.0 million in 2023, $76.3 million in 2024 and $106.0 million in 2025 8.

The rise came from clinical and regulatory milestones and an option fee from partners, partly offset by the Jazz handover 8. The net loss narrowed to $81.1 million from $122.7 million the year before 8.

In September 2025 it dropped its ZW171 cancer program after a safety and benefit review 8. In November 2025 the Phase 3 HERIZON-GEA-01 trial of Ziihera in first-line stomach and esophageal cancer reported positive results 8.

On 2 March 2026 it sold the right to 30 percent of future Ziihera royalties to a new subsidiary, which took a $250.0 million loan from Royalty Pharma 6. First-half 2026 revenue fell to $7.0 million from $75.8 million because 2025 held one-off milestones 6.

The company began repurchasing its own shares in August 2024 7. By 4 August 2026 it had used $213.6 million across its programs to buy back 10,571,316 shares 7.

Leadership changed in 2026, with severance and new equity awards tied to executive transitions 6. Kristin Stafford joined as chief financial officer on 1 April 2026 12.

On 28 June 2026 it signed the agreement to buy Theravance Biopharma for $17.00 in cash and one contingent value right per Theravance share 9. It closed on 23 September 2026 3.

Ziihera (zanidatamab)

Ziihera is a bispecific antibody, one that grabs two spots on the HER2 protein, built on the Azymetric platform 6. Jazz sells it in most of the world and BeOne in Asia outside Japan 6.

It is approved for biliary tract cancer in the United States, China, Europe and Canada 6. Since 25 August 2026 it is also approved with chemotherapy, with or without tislelizumab, as first treatment for HER2-positive stomach and esophageal cancer 515.

Jazz reported Ziihera net product sales of $21 million in the third quarter of 2026 16. Zymeworks itself booked $1.8 million of royalty revenue from Jazz and BeOne in the second quarter 6.

Jazz pays tiered royalties of 10 percent to 20 percent, and BeOne up to 19.5 percent 8. Zymeworks sold 30 percent of those royalties to its lender and keeps 70 percent while the loan runs 6.

The pivotal trial compared Ziihera regimens with trastuzumab, the older HER2 antibody, plus chemotherapy 15. The first-line regimen with tislelizumab showed a median survival of 26.4 months 8.

YUPELRI and the Theravance business

YUPELRI (revefenacin) came with Theravance Biopharma, which sold it with Viatris 417. Zymeworks is entitled to 35 percent of net United States profits and royalties on sales outside the United States 4.

In the first half of 2026 YUPELRI sales were $133.1 million, which gave Theravance $38.4 million of collaboration revenue 4. Zymeworks said hospital sales grew 25 percent in the second quarter 4.

The purchase also brought a small product called VIBATIV, royalty and milestone rights including a potential $100 million TRELEGY ELLIPTA milestone, and an early-stage immunology portfolio 47.

Theravance holders also got a contingent value right: 80 percent of any proceeds from licensing ampreloxetine within ten years, a $50 million payment on its first sale, and 10 percent of its net sales 3.

Pasritamig and the platform partners

Pasritamig is a two-target antibody against the KLK2 protein in prostate cancer, built with the Azymetric platform and developed by Johnson & Johnson 6. J&J raised its Phase 3 trial from about 663 to 1,203 participants across 172 sites 7.

Four other drugmakers hold platform licenses: Bristol Myers Squibb, GSK, Daiichi Sankyo and Merck 8. Together they could owe up to $0.98 billion in development milestones and $3.08 billion in commercial milestones, plus royalties 8.

Zymeworks' own pipeline

ZW191 is an antibody-drug conjugate, a cancer antibody carrying a toxic payload, aimed at folate receptor alpha on ovarian, endometrial and lung tumors 6. Among platinum-resistant ovarian patients the confirmed response rate was 78.6 percent for FRα-positive and 47.4 percent for FRα-negative tumors 6.

ZW251, a conjugate aimed at GPC3 in liver cancer, is in a Phase 1 trial planned for about 100 people 6. ZW220, a third conjugate, is paused to speed up ZW251 6.

ZW209 now sits with Roche, and ZW1528 is a molecule meant to block three inflammation signals in lung disease 62. The company expects to file to start human trials of ZW1528 in 2027 6.

People and places

Kenneth Galbraith is Chair, President and Chief Executive Officer 5. Kristin Stafford became chief financial officer on 1 April 2026 after serving as chief accounting officer at Royalty Pharma 12.

At the end of 2025 it had 264 full-time employees, 184 in Canada and 66 in the United States 8. Its Vancouver building holds offices and laboratories, and it also leases offices in Bellevue, Redwood City and Dublin 8.

Rivals and problems

The company says it competes with large drug companies, universities and research institutes, and for royalty assets with funds that may have a lower cost of capital 8. Its partners, not Zymeworks, make Ziihera for sale 8.

It still loses money: a $89.2 million net loss in the first six months of 2026 and an accumulated deficit of $1,171.2 million 6. Jazz may end its Ziihera agreement at its sole discretion with notice 8.

The new $350 million note carries 8.25 percent interest and can fall due early on a change of control not approved by the lender 3.

The umbrella, in words

Brands: Ziihera is Zymeworks' own discovery sold by partners, YUPELRI came with Theravance, and Azymetric and EFECT are its platform names 6172.

Its annual report lists ten subsidiaries, among them Zymeworks BC Inc. in British Columbia, Zymeworks Biopharmaceuticals Inc. in Washington, Zymeworks Pharmaceuticals Limited in Ireland and and a Singapore company 13. Theravance Biopharma is now a wholly owned subsidiary 3.

Ties by contract: Royalty Pharma lent $250.0 million against Ziihera royalties, and OMERS, through OCM IP Healthcare Portfolio LP, bought the $350,000,000 notes, guaranteed by Theravance units 63.

Large holders: EcoR1 Capital reported 30.7 percent of the common stock in a Schedule 13D amendment filed in November 2025 14. Rubric Capital reported 9.49 percent and Perceptive Advisors 5.4 percent in recent filings 1819.

The annual meeting on 15 December 2026 also covers holders of exchangeable shares of a Canadian subsidiary, who vote alongside stockholders 10.

The 2026 annual meeting is on 15 December 2026 10. Stockholders vote on three Class II directors, an employee stock purchase plan, ending the staggered board and the choice of auditors 10.

Zymeworks will report third-quarter results on 9 November 2026 and does not plan a call or webcast 11. Management expects the first accounting for Theravance to appear in the Form 10-Q for that quarter 4.

The company expects 2026 revenue of $278 million to $292 million and adjusted EBITDA of $114 million to $128 million, excluding future deals 4. It expects a $100 million TRELEGY ELLIPTA milestone in the first quarter of 2027 if conditions are met 4.

It is still eligible for more Ziihera milestones: $100 million in Europe, $75 million in Japan and $15 million in China for the first-line stomach and esophageal use 6. A third indication would add milestones totaling $89.0 million 6.

Trials by partners continue, and the company says the breast cancer trial EmpowHER-303 should finish enrolling in mid-2027, with top-line data by the end of 2027 or early 2028 7.

J&J's Phase 3 pasritamig trial now has a primary completion estimated for December 2027 7. Roche's license of ZW209 starts after antitrust clearance, and a Phase Ib start would trigger the $40.0 million payment 1.

For its own pipeline, the company intends to keep ZW191 and ZW251 in Phase 1 studies during 2026 and to file to start ZW1528 trials in 2027 6. It says development of ZW220, ZW327 and ZW418 depends on partners or outside funding 8.

It also plans to hire a seasoned pharmaceutical executive to lead the commercial operations of Theravance Biopharma 4. A designee of Theravance will seek to license or sell ampreloxetine within one year of closing, with proceeds split 20 percent to Zymeworks and 80 percent to Theravance holders 4.