Zymeworks Inc. Q1 FY2025 earnings call

• Business model: Performance reflects discipline, focus, and resilience, with programs moving towards clinical milestones.
• R&D updates: Six posters presented at AACR, upcoming presentations at ATS, ASCO, ESMO; Jazz's zanidatamab progress and J&J's KLK2 bispecific update.
• Financials: Revenue increase, net loss decrease, well-capitalized with cash resources.
• Scientific highlights: ZW209 preclinical data, ADC programs (327, PTK7) details, and ZW171's safety and antitumor activity.

Zymeworks reported a net loss of $22.6 million for the three months ended March 31, 2025, compared to a net loss of $31.7 million in the same period of 2024. Revenue for the quarter was $27.1 million, up from $10 million in 2024. Revenue breakdown: $14 million from GSK milestone, $3.1 million from Daiichi Sankyo milestone, $9.6 million from development support and drug supply, $0.2 million royalty from Jazz, and $0.2 million drug supply from BeiGene. Operating expenses were $52.7 million, up 10% from $47.3 million in 2024. Research and development expense was $35.7 million, up from $32 million, and general and administrative expenses were $17 million, up from $15.8 million. Cash resources as of March 31, 2025, were $321.6 million, and the company expects to fund operations into the second half of 2027 with existing cash and anticipated milestones.

• Cash runway: Existing cash combined with anticipated regulatory milestones will fund operations into the second half of 2027.
• Pipeline milestones: Expecting Phase 3 top-line data for zanidatamab, ASCO presentations, and IND submission for ZW251 by mid-2025.

• Biotech industry uncertainties, including regulatory risks, clinical trial risks, and partner execution risks.

Q: Charles Zhu asked about capital allocation and ZW209's cytokine induction data.

A: Ken Galbraith discussed capital allocation discipline and ZW209's limited cytokine release profile.

Q: Brian Cheng inquired about zanidatamab's ex-US patients and J&J's KLK2 bispecific.

A: Ken Galbraith commented on ethnic efficacy in zanidatamab and J&J's KLK2 bispecific progress.

Q: Stephen Willey asked about 171 and 191 data communication and clinical development capacity.

A: Ken Galbraith stated no early guidance but encouraged peer-reviewed data presentations.

Q: Jonathan Miller asked about internal/external program capacity.

A: Ken Galbraith discussed internal clinical infrastructure capacity and collaboration evaluations.

Q: Amanda Acosta-Ruiz asked about Ly6E ADC confidence.

A: Ken Galbraith highlighted 327's improved antibody, payload, and tolerability vs competitors.

Q: Yigal Nochomovitz inquired about T cell engager vs ADC strategy for DLL3.

A: Paul Moore explained T cell engager strategy benefits for DLL3.

Q: Eva Fortea-Verdejo asked about learnings from ZW171/191 for other candidates.

A: Paul Moore mentioned leveraging learnings from clinical designs for other programs.

Q: Robert Burns asked about ZW209's impact on earlier IMDELLTRA use and PTK7 comparator.

A: Paul Moore discussed ZW209's design for combination use and PTK7 biparatopic advantages