Zymeworks stock shows promise as H.C. Wainwright reiterates Buy rating

Investing.com - H.C. Wainwright has reiterated a Buy rating and $26.00 price target on Zymeworks (NASDAQ:ZYME), a biotech company with a market capitalization of $1.33 billion, following the presentation of encouraging Phase 1 results for its FRa-targeted ADC, ZW191, at the AACR-NCI-EORTC meeting. The stock has shown remarkable momentum, gaining over 46% in the past six months, according to InvestingPro data.

The data showed ZW191 achieved an objective response rate (ORR) of 44% across all response-evaluable participants in dose escalation trials. For doses between 6.4 mg/kg to 9.6 mg/kg, the ORR improved to 53%, according to the analyst report.

Among gynecological cancer patients specifically, the treatment demonstrated a 50% ORR across all dose levels, with effectiveness increasing to 64% at the higher dose range of 6.4-9.6 mg/kg.

Notably, ZW191 showed efficacy in tumors with low or negative levels of FRα expression, achieving a 57.1% response rate in this difficult-to-treat population. This compares favorably to Elahere, which is currently FDA-approved only for FRα-high ovarian cancer patients.

The analyst acknowledged competition in the FRα-targeted ADC space, including from Genmab, which presented data at SGO 2025 showing its Rina-S 120mg/m2 achieved a 55.6% confirmed ORR in advanced ovarian cancer patients, with effectiveness in both FRα-low and FRα-high populations.

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. This promising data will be presented at the upcoming AACR-NCI-EORTC cancer therapeutics conference in Boston, highlighting its potential in treating advanced solid tumors. Meanwhile, Wells Fargo initiated coverage on Zymeworks with an Equal Weight rating and raised the price target from $14.00 to $15.00, focusing on the positive results of ZW191 in early trials.

In a strategic move, Zymeworks appointed Adam Schayowitz as Acting Chief Development Officer, where he will work on advancing product candidates and supporting partnership strategies. However, the company also announced the discontinuation of its ZW171 cancer drug development after concluding that further dose evaluation would not meet the desired benefit-risk profile. This decision follows the completion of the dose escalation portion of its Phase 1 trial in ovarian and non-small cell lung cancer patients. These developments come as Zymeworks continues to focus on its promising pipeline and strategic leadership appointments.

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