Zymeworks shares fall as Q4 earnings miss expectations

Published 05/03/2025, 22:40
Zymeworks shares fall as Q4 earnings miss expectations

VANCOUVER - Zymeworks Inc . (NASDAQ:ZYME) reported fourth-quarter earnings that fell short of analyst estimates, sending shares down 5.9% in after-hours trading. The clinical-stage biotechnology company posted a loss of $0.31 per share on revenue of $31.03 million for the quarter ended December 31, 2024.

The company’s revenue of $31.03 million for Q4 represented a significant increase from the same quarter last year, driven primarily by milestone payments and development support revenue from partnerships, though it did miss analyst expectations of $45.2 million. However, the loss of $0.31 per share was wider than analysts’ projections of a loss of $0.09.

Zymeworks highlighted progress in its pipeline, including the initiation of first-in-human studies for two key drug candidates - ZW191, an antibody-drug conjugate targeting folate receptor-α, and ZW171, a bispecific T cell engager targeting mesothelin. The company also announced plans to accelerate the investigational new drug application for ZW251 to mid-2025.

"We significantly advanced our wholly-owned product pipeline during 2024," said Kenneth Galbraith, Chair and CEO of Zymeworks. He noted the FDA’s accelerated approval of Ziihera (zanidatamab-hrii) for previously-treated HER2-positive biliary tract cancer as a major milestone.

The company reported cash resources of $324.2 million as of December 31, 2024. When combined with anticipated regulatory milestone payments, Zymeworks projects its cash runway to extend into the second half of 2027.

Despite the earnings miss, Zymeworks emphasized its progress in developing next-generation biotherapeutics and its strong cash position to fund ongoing research and development efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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