Zymeworks Inc. Q2 FY2025 earnings call

Clinical Programs - ZW171: Presented trial progress poster, using subcutaneous step-up dosing regimen. - ZW191: Designed in 2 parts, dose escalation phase starting at 1.6 mg per kg, with expansion cohorts in ovarian, endometrial, and non-small cell lung cancer. - ZW251: Received IND clearance, targeting hepatocellular carcinoma with GPC3 expression. ### Preclinical Pipeline - ZW1528: Inaugural data presented at American Thoracic Society International Conference, targets IL-4 and IL-33 for COPD. ### Partnerships - Jazz: Phase I trial results for pasritamig, a bispecific antibody targeting KLK2 in prostate cancer. - Daiichi Sankyo: Phase I study of DS-2243, a bispecific T cell engager. - Zanidatamab: Updated long-term survival data at ASCO, conditional approvals in China and Europe, and Phase II trial initiation. ### Financial - Received $20 million milestone from BeOne, $7.5 million from BMS, and royalty revenues; operating expenses decreased due to lower impairment charge and other cost reductions.

Total revenue in the second quarter of 2025 was $48.7 million, compared to $19.2 million in the second quarter of 2024. The increase was due to a $20 million nonrefundable milestone from BeOne, $7.5 million from BMS, and royalty revenues. Operating expenses were $49.4 million for the three months ended June 30, 2025, compared to $62.1 million in the same period in 2024, a decrease of 20%. Net income was $2.3 million in the second quarter of 2025, compared to a net loss of $37.7 million in the same period in 2024.

• Existing cash resources as of June 30, 2025, are expected to fund planned operations into the second half of 2027. - HERIZON-GEA-01 top line progression-free survival data expected late in the fourth quarter of 2025. - ZW251 to initiate clinical sites globally following IND clearance.

• Uncertainties around trial design, patient selection for IL-33 targeting in COPD. - Supply chain considerations for future commercialization of compounds. - Regulatory and safety concerns in clinical development of new compounds.

Q: On the HERIZON-GEA readout, will PD-L1 status be broken out for arm C and how is the $525 million regulatory milestone weighted?

A: Data inclusion in top line press release is up to Jazz and BeOne; $500 million left in development milestones with Jazz, allocation to GEA vs other indications not specified.

Q: When can we expect data from ZW191 Phase I trial and about FR alpha expression in non-small cell lung cancer?

A: Data from ZW191 Phase I trial will be shared at peer review meetings; FR alpha is expressed in a subset of non-small cell lung cancer patients, and ZW191 is designed to target this.

Q: Thoughts on pasritamig data and CD3 variant affinity?

A: Pasritamig shows favorable safety and tolerability; CD3 variant affinity is selected based on target biology.

Q: When to expect data from ZW191 and how much dose escalation data accumulated?

A: Data from ZW191 Phase I trial will be shared at appropriate peer review meetings; exact accumulation of dose escalation data at cutoff point not specified in advance.

Q: View on HERIZON-GEA-01 readout delay and supply chain/scenario planning with AI?

A: HERIZON-GEA-01 readout delay is within second half of 2025; Zymeworks is comfortable with supply chain for zanidatamab and uses AI in protein design from early stages.