Zymeworks Provides Corporate Update and Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Zymeworks (Nasdaq: ZYME) reported 2Q 2026 revenue of $4.6 million versus $48.7 million a year earlier and a net loss of $45.0 million versus net income of $2.3 million, with R&D expenses down 20% to $27.4 million and G&A up to $19.3 million. Cash, cash equivalents and marketable securities totaled $322.5 million at June 30, 2026.
The company highlighted an August 25, 2026 U.S. PDUFA target action date for zanidatamab in 1L HER2+ GEA, tied to a potential $250 million U.S. approval milestone and up to $440 million in total potential global regulatory milestones. Zymeworks expects its proposed 2H 2026 acquisition of Theravance Biopharma to be earnings‑accretive, adding YUPELRI cash flows (~$60 million annualized at current run‑rates), additional royalties, milestones and $2.5 billion in Irish tax attributes, financed mainly by a $350 million non‑recourse note and Theravance’s expected $360 million net cash.
Positive
- Potential zanidatamab milestones: $250 million U.S. approval milestone within up to $440 million total global regulatory milestones for 1L HER2+ GEA
- Theravance acquisition economics: expected to be earnings‑accretive, adding YUPELRI cash flows (~$60 million annualized at current run‑rates) and $2.5 billion in Irish tax attributes
- Strong liquidity: $322.5 million in cash, cash equivalents and marketable securities as of June 30, 2026
- R&D cost reduction: 2Q 2026 R&D expenses of $27.4 million, down 20% from $34.4 million in 2Q 2025
- Capital returns: $49.4 million repurchased under the 2026 program (1,971,454 shares), and $213.6 million cumulatively since August 2024 (10,571,316 shares)
- ZW191 clinical activity: cORR of 78.6% in FRα‑positive and 47.4% in FRα‑negative platinum‑resistant ovarian cancer patients in Phase 1 dose‑escalation
Negative
- Revenue decline: total revenue fell to $4.6 million in 2Q 2026 from $48.7 million in 2Q 2025, mainly due to non‑recurring collaboration revenue in the prior year
- Profitability deterioration: swung to a net loss of $45.0 million in 2Q 2026 from net income of $2.3 million in 2Q 2025
- Higher G&A expenses: G&A rose to $19.3 million in 2Q 2026 from $15.0 million a year earlier, primarily from increased stock‑based compensation
- Interest burden: net other expense of $3.1 million in 2Q 2026 versus net other income of $2.8 million in 2Q 2025, driven mainly by $6.6 million of interest expense on the Royalty Pharma note
News Explained
The buyback is partly executed, while management will stop publishing cash-runway guidance.
The completed capital action is the repurchase of
The company also states that it will no longer provide cash-runway guidance and will instead emphasize operating-performance and long-term-growth metrics.
As of
AI-generated analysis. How Rhea-AI works. Not financial advice.
- August 25, 2026 U.S. PDUFA target action date for zanidatamab has potential to unlock a
$250 million U.S. approval milestone and up to$190 million in potential additional global regulatory milestones - Acquisition of Theravance Biopharma, Inc. expected to close in 2H 2026, adding durable commercial cash flows and expanding Zymeworks' diversified revenue base
- Continued advancement of R&D pipeline across wholly-owned and partnered programs
- Repurchased
$49.4 million of common shares as of August 4, 2026 under the newly authorized 2026 share repurchase program - Strong balance sheet with
$322.5 million in cash, cash equivalents and marketable securities as of June 30, 2026
VANCOUVER, British Columbia, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Zymeworks Inc. (Nasdaq: ZYME), a biotechnology company managing a portfolio of licensed healthcare assets, while developing a diverse pipeline of novel, multifunctional biotherapeutics, today reported financial results for the second quarter ended June 30, 2026 and provided a summary of recent business highlights. In light of the previously announced proposed acquisition of Theravance Biopharma, the Company has elected not to host a second quarter earnings conference call after release of its financial results.
“The first half of 2026 has been a transformative period for Zymeworks, demonstrating the continued evolution of our business into a diversified, revenue-generating biotechnology business. While scientific innovation remains our foundation, we believe long-term value is created not only through discovering new medicines, but also through disciplined capital allocation, creative business development and thoughtful partnership structures that maximize the impact of that innovation for patients and shareholders,” said Kenneth Galbraith, Chair and Chief Executive Officer of Zymeworks.
“The second half of 2026 has the potential to continue creating meaningful value for both patients and shareholders. Subject to regulatory approval and customary closing conditions, the August U.S. PDUFA target action date for zanidatamab and the planned closing of the Theravance Biopharma acquisition, respectively, would immediately strengthen our revenue base and cash flow outlook. This includes a
Business Highlights
Positioning Zymeworks for Multiple Value-Creating Catalysts in 2H 2026
Advancing Partnerships Toward Key Regulatory and Commercial Inflection Points
Zanidatamab
- The top-line results from the second interim overall survival analysis for the HERIZON-GEA-01 trial doublet regimen are expected in the third quarter of 2026.
- The FDA granted Breakthrough Therapy Designation (BTD) for zanidatamab (Ziihera®), for the treatment of adults with previously treated, locally advanced, unresectable, or metastatic HER2-positive colorectal cancer.
- The EmpowHER-303 trial is expected to complete patient enrollment in mid-2027 with top-line data expected by the end of 2027 or early 2028.
- Results from Phase 3 HERIZON-GEA-01 published in The New England Journal of Medicine; Additional subgroup analyses presented in an oral presentation at the 2026 ASCO Annual Meeting showing improved clinical outcomes with zanidatamab-containing combinations regardless of PD-L1 expression, including in PD-L1-negative patients.
- August 25, 2026 U.S. PDUFA target action date for zanidatamab for the treatment of patients with first-line (1L) HER2-positive (HER2+) locally advanced or metastatic gastroesophageal adenocarcinoma (GEA).
- Potential
$250 million milestone upon approval in the U.S., the first of up to a total of$440 million potential global regulatory milestones for zanidatamab in 1L HER2+ GEA. Zymeworks will continue to receive royalties on Ziihera® sales, with royalty revenues expected to increase following U.S. and global regulatory approvals for GEA.
Our royalty revenue from Jazz Pharmaceuticals (Jazz) and BeOne Medicines was
Pasritamig
- Johnson and Johnson Innovative Medicine (J&J) expect to present Phase 1b clinical data for pasritamig, a first-in-class bispecific antibody against KLK2, in combination with JNJ-9401 in patients with advanced prostate cancer who have progressed after multiple lines of therapy, during the second half of 2026.
- J&J increased the planned enrollment for its Phase 3 trial of pasritamig (JNJ-78278343) in combination with best supportive care in patients with late-line metastatic castration-resistant prostate cancer (mCRPC), from approximately 663 to 1,203 participants. The study is actively recruiting across 172 sites globally and is evaluating overall survival versus placebo, with median overall survival as the primary endpoint. The anticipated primary completion date is now estimated as December 2027, compared with the previously estimated May 2028 date (NCT07164443).
Leveraging Partnerships and External Innovation
- The Company is advancing strategic initiatives to maximize the value of its proprietary Pan-RAS antibody-drug conjugate (ADC) platform, including evaluating the formation of a separate, dedicated entity with third-party capital participation. The Company expects to use third-party capital to advance multiple product candidates from the platform into clinical studies while retaining an equity interest and future economic participation, including potential royalties, subject to completion of a transaction.
- The Company has engaged MTS Healthcare to evaluate strategic partnering opportunities to fund further development for ZW191 with the objective of maximizing long-term value.
- The Company continues its evaluation of additional business development opportunities consistent with its capital allocation strategy.
Expanding Revenue Diversification
- Proposed acquisition of Theravance Biopharma expected to be accretive to earnings and generate positive cash flow upon closing in 2H 2026.
- YUPELRI® U.S. profit share and ex-U.S. royalties expected to generate ~
$60 million annualized cash flow at current run-rates, with continued expected growth. - Proposed acquisition to add diversified assets beyond YUPELRI®, including additional royalty interests, milestone payments, an early-stage I&I portfolio, and
$2.5 billion in Irish tax attributes, further strengthening both potential near-term cash flow generation and long-term development optionality. - Transaction financed primarily by
$350 million non-recourse note secured solely by U.S. YUPELRI® profit share from OMERS Life Sciences, and Theravance Biopharma’s expected net cash balance of$360 million at closing, with Zymeworks contributing the remainder of the purchase price in cash at closing. Zymeworks expects to receive$100 million in TRELEGY ELLIPTA® milestones in Q1 2027, assuming milestone conditions are met, in 2026, offsetting cash outlay. - The anticipated closing of the acquisition is expected to support Zymeworks' transition to a diversified, revenue-generating business. Consistent with this evolution, the Company no longer intends to provide cash runway guidance, and expects to increasingly focus on providing guidance on operating performance and long-term growth.
Advancing a Differentiated ADC Pipeline
- In June 2026, we presented new clinical data from the dose-escalation portion of the ongoing Phase 1 study evaluating ZW191, a folate receptor alpha-targeting antibody-drug conjugate, at the European Society for Medical Oncology Gynaecological Cancers Congress 2026. Among response-evaluable platinum-resistant ovarian cancer patients, ZW191 demonstrated a cORR of
78.6% in patients with FRα-positive tumors and47.4% in patients with FRα-negative tumors across all dose levels. These findings demonstrate meaningful anti-tumor activity across both FRα-positive and FRα-negative tumors as well as in the overall population. - We continue to recruit patients in an ongoing Phase 1b study of ZW251, a GPC3-targeting antibody-drug conjugate, for the treatment of patients with hepatocellular carcinoma, squamous non-small cell lung cancer and germ cell tumors.
Maintaining Financial Flexibility
Cash Resources: Zymeworks reported
Share Repurchase Program: In May 2026, the Board of Directors authorized a 2026 share repurchase program under which the Company may repurchase up to
Since initiating its share repurchase program in August 2024, the Company has cumulatively utilized
Operating Expense Discipline: The Company expects significant near-term milestones, including the anticipated closing of the Theravance Biopharma acquisition and the upcoming August 25, 2026 PDUFA date for zanidatamab in GEA, each of which has the potential to immediately expand the Company's revenue and cash flow profile, subject to customary closing conditions and regulatory approval, respectively. The Company continues to expect disciplined investment across research and development and general and administrative activities through the anticipated closing of the Theravance Biopharma acquisition. The Company's previously communicated operating expense framework was established prior to entering into the definitive acquisition agreement, and therefore does not reflect the expected operating profile of the combined organization. Subject to the successful completion of the transaction, the Company expects to provide an updated financial outlook following closing that reflects the combined business.
Financial Results for the Quarter Ended June 30, 2026
The key financial highlights for our 2026 second quarter results are as follows:
Revenue – Total revenue was
Research and Development (R&D) Expenses – R&D expenses were
General and Administrative (G&A) Expenses – G&A expenses were
Other Income, net – Net other expense was
Net Loss – Net loss was
Liquidity – As of June 30, 2026, we had
About Zymeworks Inc.
Zymeworks is a global biotechnology company managing a portfolio of licensed healthcare assets and developing a diverse pipeline of novel, multifunctional biotherapeutics to improve the standard of care for difficult-to-treat diseases, including cancer, inflammation, and autoimmune disease. The Company’s asset and royalty aggregation strategy focuses on optimizing positive future cash flows from an emerging portfolio of licensed products such as Ziihera® (zanidatamab-hrii) and other licensed products and product candidates, such as pasritamig. In addition, Zymeworks is also building a portfolio of healthcare assets that can generate strong cash flows, while supporting the development of innovative medicines. Zymeworks engineered and developed Ziihera, a HER2-targeted bispecific antibody using the Company’s proprietary Azymetric™ technology and has entered into separate agreements with BeOne Medicines Ltd. (formerly BeiGene, Ltd.) and Jazz Pharmaceuticals Ireland Limited granting each exclusive rights to develop and commercialize zanidatamab in different territories. Zymeworks is rapidly advancing a robust pipeline of product candidates, leveraging its expertise in both antibody drug conjugates and multispecific antibody therapeutics targeting novel pathways in areas of significant unmet medical need. The Company’s complementary therapeutic platforms and fully integrated drug development engine provide the flexibility and compatibility to precisely engineer and develop highly differentiated antibody-based therapeutics. These capabilities have been further leveraged through strategic partnerships with global biopharmaceutical companies. For information about Zymeworks, visit www.zymeworks.com and follow @ZymeworksInc on X.
Non-GAAP Financial Information
Zymeworks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For further information regarding why Zymeworks believes that these non-GAAP measures provide useful information to investors and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Information” section at the end of this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes “forward-looking statements” or information within the meaning of the applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include, but are not limited to, statements that relate to Zymeworks’ expectations regarding implementation of its strategic priorities and the anticipated benefits thereof, including shareholder returns and the anticipated manner of such returns; implementation of its long-term strategy to maximize value creation; the anticipated benefits of its collaboration agreements, including Zymeworks’ ability to receive any future milestone payments and royalties thereunder; Zymeworks' ability to complete the proposed transaction with Theravance Biopharma; future growth of YUPELRI® sales and future royalty payments; contingent milestone payments due to Theravance Biopharma from the sale of Theravance Biopharma’s TRELEGY ELLIPTA® royalty interests; Zymeworks’ ability to execute the share repurchase program, in whole or in part; expected timing and amount of repurchases; the potential addressable market of zanidatamab and other product candidates; the timing of and results of interactions with regulators; Zymeworks’ and its partners’ clinical development of product candidates; the expected contributions of personnel to Zymeworks’ clinical development, strategic goals and long-term shareholder value for patients and shareholders; the timing and status of ongoing and future studies and the related data; potential safety profile and therapeutic effects of zanidatamab and Zymeworks’ other product candidates; the potential of ZW191 to be a best-in-class therapy; the commercial potential of technology platforms and product candidates; Zymeworks’ ability to satisfy potential regulatory and commercial milestones with existing and future partners; anticipated continued receipt of revenue from existing and future partners; Zymeworks’ ability to generate royalty revenue from Ziihera; Zymeworks’ ability to execute new collaborations and partnerships; Zymeworks’ early-stage pipeline; anticipated sufficiency of existing cash resources, when combined with the assumed receipt of certain anticipated regulatory milestone payments related to the potential approvals of Ziihera in GEA in the U.S., Europe, Japan, and China, and assuming the full execution of the
Although Zymeworks believes that such forward-looking statements are reasonable, there can be no assurance they will prove to be correct. Investors should not place undue reliance on forward-looking statements. The above assumptions, risks and uncertainties are not exhaustive. Forward-looking statements are made as of the date hereof and, except as may be required by law, Zymeworks undertakes no obligation to update, republish, or revise any forward-looking statements to reflect new information, future events or circumstances, or to reflect the occurrences of unanticipated events.
ZYMEWORKS INC.
Consolidated Statements of Loss and Comprehensive Loss
(In thousands except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Revenue | |||||||||||||||
| Research and development collaborations | $ | 4,590 | $ | 48,726 | $ | 6,998 | $ | 75,836 | |||||||
| Operating expenses: | |||||||||||||||
| Research and development | 27,435 | 34,449 | 61,892 | 70,187 | |||||||||||
| General and administrative | 19,335 | 14,951 | 34,404 | 31,936 | |||||||||||
| Total operating expenses | 46,770 | 49,400 | 96,296 | 102,123 | |||||||||||
| Loss from operations | (42,180 | ) | (674 | ) | (89,298 | ) | (26,287 | ) | |||||||
| Other (expense) income, net | (3,112 | ) | 2,805 | (2,347 | ) | 6,278 | |||||||||
| (Loss) income before income taxes | (45,292 | ) | 2,131 | (91,645 | ) | (20,009 | ) | ||||||||
| Income tax recovery (expense) | 273 | 186 | 2,464 | (310 | ) | ||||||||||
| Net (loss) income | $ | (45,019 | ) | $ | 2,317 | $ | (89,181 | ) | $ | (20,319 | ) | ||||
| Other comprehensive (loss) income: | |||||||||||||||
| Unrealized (loss) income on available for sale securities, net of tax of nil | (129 | ) | 66 | (615 | ) | 612 | |||||||||
| Total other comprehensive (loss) income | (129 | ) | 66 | (615 | ) | 612 | |||||||||
| Comprehensive (loss) income | $ | (45,148 | ) | $ | 2,383 | $ | (89,796 | ) | $ | (19,707 | ) | ||||
| Net (loss) income per common share: | |||||||||||||||
| Basic | $ | (0.62 | ) | $ | 0.03 | $ | (1.21 | ) | $ | (0.27 | ) | ||||
| Diluted | $ | (0.62 | ) | $ | 0.03 | $ | (1.21 | ) | $ | (0.27 | ) | ||||
| Weighted-average common stock outstanding: | |||||||||||||||
| Basic | 72,993,313 | 75,337,168 | 73,826,423 | 75,254,553 | |||||||||||
| Diluted | 72,993,313 | 77,378,449 | 73,826,423 | 75,302,357 | |||||||||||
ZYMEWORKS INC.
Selected Consolidated Balance Sheet Data
(In thousands)
| June 30, 2026 | December 31, 2025 | ||||
| (unaudited) | (unaudited) | ||||
| Assets | |||||
| Current assets: | |||||
| Cash, cash equivalents and short-term marketable securities | $ | 270,699 | $ | 228,797 | |
| Accounts receivable | 5,930 | 4,638 | |||
| Other current assets | 21,759 | 15,332 | |||
| Long-term marketable securities | 51,777 | 41,787 | |||
| Other long-term assets | 46,799 | 55,973 | |||
| Total assets | $ | 396,964 | $ | 346,527 | |
| Liabilities | |||||
| Current liabilities: | |||||
| Accounts payable and accrued expenses | $ | 27,458 | $ | 36,346 | |
| Other current liabilities | 19,785 | 5,972 | |||
| Long-term liabilities | 269,352 | 35,708 | |||
| Total liabilities | 316,595 | 78,026 | |||
| Stockholders’ equity | 80,369 | 268,501 | |||
| Total liabilities and stockholders’ equity | $ | 396,964 | $ | 346,527 | |
Explanation of Non-GAAP Financial Information
In addition to reporting financial information in accordance with U.S. generally accepted accounting principles (GAAP) in this press release, we have elected to present selected non-GAAP, or adjusted, financial measures on a forward-looking basis. Zymeworks believes that estimated adjusted gross operating expense, adjusted research and development expense, and adjusted general and administrative expense, which are non-GAAP financial measures, may be helpful to investors because they provide consistency and comparability with financial performance across periods. These non-GAAP financial measures are not defined by GAAP and should not be considered as alternatives to operating expenses, research and development expenses, and general and administrative expenses or any other indicators of Zymeworks’ performance required to be reported under GAAP. In addition, other companies, including companies in Zymeworks’ industry, may calculate similarly titled non-GAAP or adjusted measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of adjusted gross operating expense, adjusted research and development expense, and adjusted general and administrative expense as financial measures. Investors and others are encouraged to review Zymeworks’ financial information in its entirety and not rely on a single financial measure. As defined by Zymeworks, adjusted gross operating expense represents the aggregate of adjusted research and development expense and adjusted general and administrative expense, each of which excludes stock-based compensation expense for equity- and liability-classified equity instruments. Zymeworks excludes stock-based compensation expense, which is a non-cash expense, because Zymeworks believes that excluding this item provides meaningful supplemental information regarding operational performance.
A reconciliation of historical adjusted gross operating expense, adjusted research and development expense, and adjusted general and administrative expense to the most directly comparable GAAP measures is set forth below. A reconciliation of anticipated adjusted gross operating expense, adjusted research and development expense, and adjusted general and administrative expense to the most directly comparable GAAP measures is not available without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, and we are also unable to predict the probable significance of such adjusted measures. Accordingly, in reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, we have not provided a reconciliation for the adjusted gross operating expense, adjusted research and development expense, and adjusted general and administrative expense guidance provided in this press release.
GAAP to Non-GAAP Reconciliations
(In thousands)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Research and development expense | $ | 27,435 | $ | 34,449 | $ | 61,892 | $ | 70,187 | |||||||
| Stock-based compensation expense | (3,421 | ) | (3,023 | ) | (7,307 | ) | (6,287 | ) | |||||||
| Adjusted research and development expense (Non-GAAP basis) | $ | 24,014 | $ | 31,426 | $ | 54,585 | $ | 63,900 | |||||||
| General and administrative expense | $ | 19,335 | $ | 14,951 | $ | 34,404 | $ | 31,936 | |||||||
| Stock-based compensation expense | (7,913 | ) | (2,848 | ) | (10,962 | ) | (5,986 | ) | |||||||
| Adjusted general and administrative expense (Non-GAAP basis) | $ | 11,422 | $ | 12,103 | $ | 23,442 | $ | 25,950 | |||||||
| Total operating expense | $ | 46,770 | $ | 49,400 | $ | 96,296 | $ | 102,123 | |||||||
| Stock-based compensation expense | (11,334 | ) | (5,871 | ) | (18,269 | ) | (12,273 | ) | |||||||
| Adjusted gross operating expense (Non-GAAP basis) | $ | 35,436 | $ | 43,529 | $ | 78,027 | $ | 89,850 | |||||||
Contacts:
Investor Inquiries:
Shrinal Inamdar
Vice President, Investor Relations
(604) 678-1388
ir@zymeworks.com
Media Inquiries:
Diana Papove
Vice President, Corporate Communications
(604) 678-1388
media@zymeworks.com
A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/787f573b-920d-41e6-b487-e6d8add0c85c
