Zymeworks Inc. sees $1.64 million stock purchase by EcoR1 Capital

EcoR1 Capital, LLC, a prominent investment firm, has increased its stake in Zymeworks Inc . (NASDAQ:ZYME), a $907 million market cap company, with a series of stock purchases totaling approximately $1.64 million. The transactions, which took place over several days in March, involved the acquisition of 127,198 shares at prices ranging from $12.7773 to $13.0833 per share. According to InvestingPro data, the company maintains a "GOOD" Financial Health score of 2.63 out of 5, with analysts setting price targets up to $30.

The purchases were made by EcoR1 Capital and its affiliated funds, with Oleg Nodelman, a director at Zymeworks, playing a key role in the transactions. Nodelman, who is also the manager and controlling owner of EcoR1, executed these transactions on behalf of the firm’s private funds, which hold the securities directly for the benefit of their investors. InvestingPro analysis reveals this follows a broader pattern of management share buybacks, with the company maintaining strong liquidity as it holds more cash than debt on its balance sheet.

Following these acquisitions, the total number of Zymeworks shares held by EcoR1 and its funds increased to 17,157,802. The purchases highlight EcoR1’s continued confidence in Zymeworks, a company specializing in pharmaceutical preparations. Get access to 7 additional exclusive InvestingPro Tips and a comprehensive Pro Research Report for deeper insights into Zymeworks’ investment potential.

In other recent news, Zymeworks reported a net loss of $122.7 million for the fiscal year 2024, with a slight increase in revenue to $76.3 million from $76.0 million in 2023. The company’s financial position remains strong, with $324.2 million in cash and equivalents, expected to support operations into 2027. Analysts from H.C. Wainwright adjusted their price target for Zymeworks to $13, maintaining a Neutral rating, while Stifel and Citi reaffirmed Buy ratings with price targets of $28 and $19, respectively. The company has made strategic decisions within its pipeline, prioritizing the GPC3-targeting ZW251 for hepatocellular carcinoma over the NaPi2b-targeting ZW220. This decision reflects a focus on accelerating value creation in areas with high unmet medical needs. Additionally, Zymeworks’ clinical trial progress includes the postponement of topline data from the Phase 3 HERIZON-GEA-01 trial to the second half of 2025. The launch of Zanodetimab by Jazz Pharmaceuticals (NASDAQ:JAZZ) is anticipated to potentially boost future revenue, offering a new revenue stream for the company.

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