Zymeworks Q2 2025 presentation: Revenue quadruples, pipeline advances with new IND

Introduction & Market Context

Zymeworks Inc . (NASDAQ:ZYME) presented its second quarter 2025 financial results and business updates on August 7, 2025, highlighting substantial revenue growth and clinical pipeline advancements. The company’s stock closed at $12.16, down 2.01% on the reporting day, trading within its 52-week range of $9.03 to $17.70.

The clinical-stage biopharmaceutical company, focused on developing novel, multifunctional biotherapeutics, demonstrated continued momentum from its Q1 performance, where it had reported $27.1 million in revenue. The Q2 results reflect Zymeworks’ strategy of balancing internal pipeline development with strategic partnerships to generate near-term revenue.

Quarterly Performance Highlights

Zymeworks reported Q2 2025 revenue of $45.8 million, a 309% increase from $11.2 million in Q2 2024. This substantial growth was primarily driven by milestone payments and partnership fees, including a $20 million payment from BeOne for conditional approval in China for zanidatamab in biliary tract cancer (BTC) and a $7.5 million option exercise payment from Bristol Myers (NYSE:BMY) Squibb.

As shown in the following chart of quarterly financial performance:

Operating expenses increased slightly to $49.4 million in Q2 2025 compared to $44.9 million in Q2 2024, with R&D expenses rising to $34.4 million from $29.2 million, partially offset by a decrease in G&A expenses from $15.7 million to $15.0 million. The company noted that higher R&D costs for ZW171, ZW191, and other preclinical research were partially offset by reduced spending for zanidatamab zovodotin and ZW220.

Zymeworks strengthened its cash position to $333.4 million as of Q2 2025, an increase of $9.2 million from $324.2 million at the end of 2024. Management attributed this improvement to milestone revenues and favorable movements in working capital.

Pipeline and Clinical Development Updates

The company made significant progress across its clinical pipeline during Q2 2025, with multiple programs advancing through development stages. A key highlight was the FDA clearance of an investigational new drug (IND) application for ZW251, a novel antibody-drug conjugate targeting GPC3 for hepatocellular carcinoma (HCC).

The following image illustrates the compelling preclinical efficacy of ZW251 against various HCC models:

ZW251 demonstrated strong anti-tumor activity in preclinical models with H-scores as low as 84 and showed favorable tolerability in non-human primate studies with a maximum tolerated dose of 120 mg/kg. The company plans to initiate first-in-human studies for ZW251 in 2025.

Zymeworks also provided updates on its ongoing Phase 1 studies for ZW171 and ZW191. The ZW171 global Phase 1 study in MSLN-expressing solid tumors is structured as follows:

Similarly, the ZW191 global Phase 1 study in FRa-expressing solid tumors follows this design:

Both studies employ a two-part approach with dose escalation followed by optimization and expansion phases, targeting specific cancer types including ovarian cancer, NSCLC, and other solid tumors.

Strategic Partnerships and Revenue Streams

A core strength of Zymeworks’ business model is its diverse revenue streams from existing partnerships, which provide both near-term cash flow and long-term growth potential. The company highlighted continued progress with partners including Jazz Pharmaceuticals (NASDAQ:JAZZ), BeOne, Bristol Myers Squibb, and Johnson & Johnson (NYSE:JNJ).

The following slide details the company’s partnership portfolio and potential future revenue:

Notable partnership developments in Q2 2025 included:

• EMA conditional marketing approval in Europe for zanidatamab in BTC
• BeOne’s conditional approval in China for zanidatamab in BTC, resulting in a $20 million payment
• Bristol Myers Squibb’s $7.5 million option exercise payment
• J&J Innovative Medicine reporting Phase 1 trial results for pasritamig at ASCO
• Daiichi Sankyo presenting a Trial in Progress Poster for DS-2243 at ASCO

Zymeworks recognized approximately $75 million in partnership-related revenues in 2025 year-to-date, including approximately $45 million in cash milestones and option exercise fees, which significantly reduced net operating cash burn compared to the first half of 2024.

Forward-Looking Statements and Catalysts

Looking ahead, Zymeworks outlined several meaningful catalyst events anticipated throughout 2025 and 2026 that could drive further growth and value creation:

Key upcoming milestones include:

• Initial royalty revenue for Ziihera® from both Jazz and BeOne expected in 2025
• Pivotal Phase 3 top-line PFS data readout in first-line gastroesophageal adenocarcinoma (GEA) for zanidatamab targeted by Jazz in Q4 2025
• Expected IND submission for ZW209 (DLL3) in the first half of 2026
• Expected regulatory submission for ZW1528 (IL4R x IL-33) in the second half of 2026

The company also highlighted its respiratory inflammation program, ZW1528, a bispecific antibody targeting IL-4Ra and IL-33 designed to address COPD:

Zymeworks projects its current cash resources, combined with anticipated regulatory milestone payments, will extend its runway into the second half of 2027, providing sufficient capital to advance its pipeline through key development stages.

CEO Ken Galbraith had previously emphasized the importance of delivering "real clinical progress on meaningfully new medicines" to create long-term shareholder value, a strategy that appears to be gaining traction with the company’s expanding clinical pipeline and strengthening financial position.

Full presentation:

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