Zymeworks (ZYME) Develops Innovative Anti Cancer Drug Zanidatamab

Zymeworks (ZYME) is a biotech company engaged in developing therapies for complicated late stage cancers. Needless to emphasize how much acclaimed would be this therapy once it proves its efficacy and safety. "The compelling top-line clinical data from the pivotal trial in patients with BTC highlight zanidatamab's potential to transform the current standard of care," said Rob Iannone, M.D., M.S.C.E., executive vice president, global head of research and development of Jazz Pharmaceuticals. "This important milestone strengthens our confidence in advancing this therapy for cancer patients with significant unmet need”.

Its lead product, zanidatamab, has shown promising results in clinical trials and has been partnered with larger pharmaceutical companies. The company also has a pipeline of early-stage candidates and a potential for substantial upside through its partnerships and commercialization of zanidatamab. So, even though the latest reported Zymeworks’ GAAP EPS of -$0.76 (negative) missed by $0.27, while its revenue of $7 million also missed estimates by a wide margin of $9.97 million, which may look a disastrous performance, investors should prioritize exactly the company’s successful, so far, anti-cancer drug development efforts.

It is a bispecific antibody, meaning it targets two separate domains of the human epidermal growth factor receptor 2 (HER2). It's partnered with Jazz Pharmaceuticals (JAZZ), whose vice-president’s opinion is quoted above, which has an enterprise value of $13 billion in most of the world, except in Asia Pacific, where it's partnered with BeiGene (BGNE), which has an enterprise value of $17.7 billion. Under the terms of the agreement, Jazz paid Zymeworks a one-time payment of $325 million in Q4 2022 to exercise its option to continue to receive an exclusive license to develop and commercialize zanidatamab in the United States, Europe, Japan except for other countries where Zymeworks previously licensed to other beneficiaries outside of Asia Pacific.