Street Calls of the Week
Investing.com - Wells Fargo has initiated coverage on Zymeworks (NASDAQ:ZYME) with an Equal Weight rating and a price target of $15.00, up from a previous target of $14.00. The stock, which has gained nearly 47% over the past six months, is currently trading close to its InvestingPro Fair Value.
The firm’s analysis focuses on Zymeworks’ ZW191 drug candidate, which showed promising results in gynecological cancer trials. At target doses of 6.4-9.6mg/kg, 64% of patients (9 out of 14) demonstrated unconfirmed partial responses, with five additional patients awaiting confirmation.
Wells Fargo notes that responses were observed in both ovarian and endometrial patients with high and low/negative FRα expression, suggesting ZW191 might address a larger total addressable market than mirvetuximab. The results appear particularly encouraging given that trial participants had undergone 3-4 prior lines of therapy.
The most common treatment-related adverse events were hematological, with the most common grade 3 or higher adverse events being anemia, neutropenia, and thrombocytopenia. One grade 4 cytopenia event was reported, though detailed patient data was not provided.
Wells Fargo indicates that adverse events did not follow a dose-response pattern between 6.4-9.6mg/kg, suggesting a wide therapeutic index for the drug. The firm considers ZW191 a promising candidate for combination therapy given its relatively low toxicity profile.
In other recent news, Zymeworks Inc. announced preliminary results from a Phase 1 study of its experimental cancer drug ZW191, showing a 64% response rate in gynecological cancers at higher doses. The study, which enrolled 41 heavily pretreated patients, demonstrated anti-tumor activity in advanced solid tumors, including ovarian, endometrial, and non-small cell lung cancers. Additionally, Zymeworks will present these preliminary findings at the upcoming AACR-NCI-EORTC cancer therapeutics conference in Boston. In a strategic move, Zymeworks has appointed Adam Schayowitz as Acting Chief Development Officer, where he will support the company’s R&D and partnership strategies while maintaining his role at EcoR1 Capital, LLC. The company also announced the discontinuation of its cancer drug ZW171 following Phase 1 trials, citing an unfavorable benefit-risk profile for further dose evaluation. To strengthen its leadership, Zymeworks has appointed Greg Ciongoli and Robert E. Landry to its Board of Directors, both of whom will serve on the audit committee. These appointments are part of Zymeworks’ efforts to bolster its governance and strategic direction.
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