Zymeworks Inc.

For the first quarter ended March 31, 2026, Zymeworks reported total revenue of $2.4 million versus $27.1 million in the prior-year period, with the decline driven mainly by nonrecurring clinical milestones earned in 2025 plus lower development support and drug supply revenue from Jazz. Operating expenses were $49.5 million versus $52.7 million a year ago, and net loss was $44.2 million compared with $22.6 million in the first quarter of 2025. Cash resources were $403.8 million at March 31, 2026, compared with $270.6 million at December 31, 2025. Forward-looking, management said its existing cash resources, combined with anticipated regulatory milestone payments of $440 million tied to potential approvals of Ziihera and GEA in the U.S., Europe, Japan and China, are expected to fund planned operations beyond 2028, assuming full execution of the $125 million share repurchase plan. The company also reiterated the August 25, 2026 PDUFA date for zanidatamab in first-line GEA in the U.S., and noted near-term milestone expectations of $250 million from Jazz for U.S. GEA approval and $15 million from V1 for China approval.

Ken Galbraith framed the quarter around a set of near-term value catalysts, led by zanidatamab’s U.S. PDUFA date and the China sBLA filing, which he described as an inflection point for commercialization and royalty growth. He emphasized the company’s strategy of combining a productive R&D engine with royalty participation, while keeping some programs unencumbered to preserve optionality for future transactions. He also highlighted AACR data for the pan-RAS ADCs and ZW191, and said the company is actively evaluating partnerships and acquisitions but will remain disciplined on price and strategic fit.

Kristin Stafford reported $2.4 million of revenue, $49.5 million of operating expenses, and a $44.2 million net loss for Q1 2026, with the year-over-year revenue decline driven by nonrecurring 2025 clinical milestones and lower Jazz-related support and supply revenue. She said cash resources were $403.8 million at quarter-end and detailed share repurchases totaling about $95.8 million through May 6, 2026, at an average price of $24.37 per share. Management expects existing cash plus $440 million of potential regulatory milestones to fund operations beyond 2028, excluding future royalties and additional milestones.

Analysts focused on the timing and cadence of upcoming clinical data, and management said more oncology meeting updates should come through 2026, but it would only give forward guidance for accepted abstracts. Questions also centered on the pan-RAS ADCs: management said the programs are well positioned for IND-enabling work, but timing to clinic will also depend on manufacturing and possible partnerships. On ZW251, management explained the protocol expansion to squamous NSCLC and germ cell tumors as a way to broaden the study based on published GPC3 expression and growing comfort with the ADC platform. On ZW1528, Ken said the IND has been pushed to 2027 so the team can better understand IL-33 biology and recent clinical data before entering the clinic; Paul added they believe the asset can block both oxidized and reduced IL-33.