ZYME

Jazz Pharmaceuticals JAZZ announced second interim top-line overall survival (OS) results from the phase III HERIZON-GEA-01 study, which evaluated different combination regimens involving its marketed drug, Ziihera (zanidatamab) as a first-line treatment for HER2+ locally advanced or metastatic gastroesophageal adenocarcinoma (GEA). The HERIZON-GEA-01 study evaluated two regimens — Ziihera plus chemotherapy and Ziihera combined with BeOne Medicines’ (formerly BeiGene) PD-1 inhibitor Tevimbra plus chemotherapy — against the current standard of care (SoC) treatment, trastuzumab plus chemotherapy, in the given population. The second interim analysis has now demonstrated that the two-drug regimen of Ziihera plus chemotherapy led to a statistically significant and clinically meaningful improvement in OS versus trastuzumab plus chemotherapy (SoC), strengthening the clinical profile of Ziihera in first-line HER2-positive GEA. Importantly, the OS hazard ratio improved from the first interim analysis, indicating a stronger survival benefit with longer follow-up. The latest results represent an important update to the first interim analysis. In the first interim analysis reported in November 2025, the results had only shown a strong trend toward statistical significance. Management also reported that with longer follow-up, Ziihera plus Tevimbra and chemotherapy resulted in an improvement in the OS hazard ratio compared with the first interim analysis. Jazz said the updated findings further demonstrate a statistically significant, clinically meaningful and durable OS benefit for the three-drug regimen. Shares of Jazz were up 2.5% yesterday following the announcement of the updated OS results. The stock has rallied 47.5% so far this year, compared with the industry’s increase of 9.7%. Image Source: Zacks Investment Research The updated OS results follow the FDA’s recent label expansion of Ziihera as the first-line treatment of adults with HER2-positive unresectable locally advanced or metastatic GEA. Under the expanded indication, Ziihera can be used in combination with chemotherapy, with or without Tevimbra, in this patient population. The approval significantly expands the addressable market for Ziihera beyond its existing use in previously treated HER2-positive biliary tract cancer (BTC). The expanded indication represents a much larger commercial opportunity than Ziihera’s existing BTC indication. GEA encompasses stomach, gastroesophageal junction and esophageal cancers and is the fifth most common cancer globally. Approximately 20% of GEA patients have HER2-positive disease, a subgroup associated with particularly poor outcomes in advanced and metastatic settings. In metastatic disease, the five-year survival rate remains below 10%, highlighting the need for more effective treatment options. The latest findings could help Jazz establish Ziihera-based regimens as an important treatment option in the first-line setting and support the company's efforts to position Ziihera as the preferred HER2-targeted backbone therapy. Jazz plans to present the updated results at a medical meeting in the fourth quarter of 2026 and submit the same to regulatory authorities worldwide. With its approval across HER2-positive disease regardless of PD-L1 status, Ziihera could address a broader patient population than regimens that require PD-L1 expression. Ziihera was added to JAZZ’s portfolio as part of a 2022 licensing agreement with Zymeworks ZYME. Per the agreement, JAZZ has exclusive rights to develop and market Ziihera in all territories except Asia-Pacific territories (where the drug has been licensed to BeOne Medicines). Zymeworks is eligible to receive tiered royalties on sales of the drug. JAZZ is developing the drug in separate late-stage studies across first-line BTC and metastatic breast cancer. Ziihera is being evaluated across multiple clinical studies for the treatment of HER2-positive solid tumors. Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC Quote Jazz currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Repligen RGEN and Anika Therapeutics ANIK, both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.61 during the same time. RGEN’s shares have gained 10.5% year to date. Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%. Over the past 60 days, estimates for Anika Therapeutics’ 2026 earnings per share have risen from 41 cents to $1.05, while estimates for 2027 have increased from 46 cents to 95 cents during the same time. ANIK’s shares have surged 117.2% year to date. Anika Therapeutics’ earnings beat estimates in each of the trailing three quarters, with the average surprise being 950.00%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report Anika Therapeutics Inc. (ANIK) : Free Stock Analysis Report Zymeworks Inc. (ZYME) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Theravance Biopharma TBPH reported second-quarter 2026 adjusted earnings of 19 cents per share, matching the Zacks Consensus Estimate. In the year-ago quarter, the company had incurred an adjusted loss of 8 cents per share. Total revenues in the quarter were $20.7 million, marginally beating the Zacks Consensus Estimate of $20 million. In the absence of any licensing and milestone revenues, total revenues declined nearly 21% year over year. Year to date, shares of Theravance have lost 9.6% compared with the industry’s 1.2% decline. Image Source: Zacks Investment Research Theravance’s top line consisted solely of collaboration revenues from partner Viatris VTRS tied to Yupelri (revefenacin) sales in the United States and rose 11% year over year, driven by continued net sales growth of Yupelri and improved operating leverage. Theravance and VTRS have collaborated on the development and commercialization of Yupelri, which is approved in the United States for the maintenance treatment of patients with chronic obstructive pulmonary disease. Viatris and Theravance share U.S. profits and losses associated with the commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance receives 35%. Viatris' collaboration revenues include Theravance’s 35% share of Yupelri net sales, as well as its proportionate amount of the total shared costs incurred by the two companies. Research and development expenses (excluding share-based compensation) totaled $4.2 million, down 56.4% from the year-ago quarter’s level, driven by cost savings from the restructuring announced in March and the ongoing wind-down of the CYPRESS study on its lead candidate, ampreloxetine. Selling, general and administrative expenses (excluding share-based compensation) declined 28.7% year over year to $10.6 million due to cost-cutting initiatives from the restructuring announced in March. As of June 30, 2026, Theravance had cash, cash equivalents and marketable securities worth $387.7 million compared with $394.7 million as of March 31, 2026. In late June, Theravance entered into an agreement with Zymeworks Inc. ZYME under which the latter will acquire TBPH in an all-cash transaction valued at approximately $929 million. The acquisition is expected to close in the second half of this year. The deal followed a strategic review initiated after Theravance's growth outlook deteriorated significantly. The company’s long-term growth strategy was centered on its lead candidate, ampreloxetine, a norepinephrine reuptake inhibitor being developed for symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy. However, in early March, the pivotal phase III CYPRESS study failed to meet its primary and secondary endpoints. Consequently, TBPH discontinued the ampreloxetine program. Following the setback, the company launched a broad strategic review, explored value-maximizing alternatives, including a potential sale and implemented a major organizational restructuring to reduce costs. Per management, the Zymeworks acquisition is the most value-maximizing option for Theravance shareholders after evaluating all available strategic alternatives. Theravance is currently undergoing a major organizational restructuring aimed at optimizing its cost structure and sharpening its focus on its commercial product, Yupelri. The restructuring is expected to cut operating costs by approximately 60% relative to the company’s 2025 operating costs of $111.1 million. Combined with continued sales of Yupelri, these savings are projected to drive approximately $60-$70 million in annualized cash flow beginning in the second half of 2026. Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote Theravance currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Theravance currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Theravance Biopharma, Inc. (TBPH) : Free Stock Analysis Report Zymeworks Inc. (ZYME) : Free Stock Analysis Report Viatris Inc. (VTRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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 $250 million approval milestone for zanidatamab in the U.S. with up to $190 million in additional potential global regulatory milestones. These diverse royalty and milestone cash flows improve our ability to sustain long-term investment in our wholly-owned R&D pipeline, pursue additional strategic acquisitions and partnerships, and continue returning capital to shareholders through our share repurchase program. We believe this disciplined approach to compounding capital and innovation is what will differentiate Zymeworks over the long term.” Business HighlightsPositioning 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 $1.8 million in the three months ended June 30, 2026, driven primarily by net product sales of Ziihera by Jazz in the United States. 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 and 47.4% 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 $322.5 million in cash, cash equivalents and marketable securities as of June 30, 2026 Share Repurchase Program: In May 2026, the Board of Directors authorized a 2026 share repurchase program under which the Company may repurchase up to $125.0 million of its outstanding common stock, par value $0.00001 per share. As of August 4, 2026, the Company has utilized approximately $49.4 million of this current approved repurchase program to acquire 1,971,454 shares at an average price of $25.04 per share (exclusive of commission expense and estimated excise tax). Since initiating its share repurchase program in August 2024, the Company has cumulatively utilized $213.6 million to reacquire 10,571,316 shares at an average price of $20.21 per share (exclusive of commission expense and estimated excise tax). As of August 4, 2026, the Company had approximately 71.0 million common shares outstanding. 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 $4.6 million in 2Q-2026, compared to $48.7 million for the same period in 2025. The decrease was driven mainly by absence of significant non-recurring collaboration revenue recognized in 2026, as well as continued declines in development support and drug supply revenue from Jazz. Revenue in the current‑year period reflects ongoing collaboration activity and increased royalty revenue, which is expected to grow over time as commercial sales of Ziihera® increase. Research and Development (R&D) Expenses – R&D expenses were $27.4 million in 2Q-2026, compared to $34.4 million for the same period in 2025, primarily reflecting reduced spending on later‑stage and discontinued programs, as well as an overall decrease in spending for earlier‑stage programs and research platforms. R&D expenses in 2Q-2026 were 20% lower than in 2Q-2025, consistent with our planned reduction in R&D expenses in 2026. General and Administrative (G&A) Expenses – G&A expenses were $19.3 million in 2Q-2026, compared to $15.0 million for the same period in 2025. The increase was primarily driven by higher non-cash stock-based compensation expense. This increase was partially offset by decrease in software amortization and software subscription expenses. Other Income, net – Net other expense was $3.1 million in 2Q-2026, compared to net other income of $2.8 million for the same period in 2025. The change was driven primarily by $6.6 million of interest expense related to the royalty-backed note financing arrangement with Royalty Pharma executed in March 2026. Net Loss – Net loss was $45.0 million in 2Q-2026, compared to a net income of $2.3 million for the same period in 2025. The change in 2026 was primarily due to a decrease in revenue, driven by the non-recurring clinical milestones earned in 2Q-2025 and interest expense related to the royalty-backed note financing arrangement with Royalty Pharma. This was partially offset by decrease in total operating expenses. Liquidity – As of June 30, 2026, we had $322.5 million of cash resources consisting of cash, cash equivalents and marketable securities, comprised of $179.4 million in cash and cash equivalents and $143.1 million in marketable securities. In light of the Company's expected transition to a revenue-generating business supported by multiple anticipated recurring cash flow streams, the Company no longer intends to provide cash runway guidance. Going forward, the Company expects to focus its financial outlook on metrics that more appropriately reflect the operating performance and growth of the business. 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 InformationZymeworks 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 $125.0 million share repurchase program, to fund Zymeworks’ planned operations beyond 2028 based on current operating plans; expected financial performance and future financial position, including anticipated adjusted gross operating expense (non-GAAP), adjusted research and development expense (non-GAAP) and adjusted general and administrative expense (non-GAAP) for the three-year period ending December 31, 2028, excluding any potential acquisition-related expenses or new partnerships and collaborations; and other information that is not historical information. When used herein, words such as “plan”, “believe”, “expect”, “may”, “continue”, “anticipate”, “potential”, “will”, “on track”, “progress”, “preserve”, “intend”, “could”, and similar expressions are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking statements are based upon Zymeworks’ current expectations and various assumptions. Zymeworks believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Zymeworks may not realize its expectations, and its beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements as a result of various factors, including, without limitation: any of Zymeworks’ or its partners’ product candidates may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable; Zymeworks and Theravance Biopharma may not be able to successfully execute the acquisition; uncertainties regarding the commercial success of YUPELRI® and TRELEGY ELLIPTA®; the anticipated benefits of the acquisition may not be realized or will not be realized within the expected time period; TRELEGY ELLIPTA® may not achieve anticipated sales resulting in sales milestones not being met; Zymeworks may not be able to successfully execute the share repurchase program; the anticipated benefits of the share repurchase program may not be realized; Zymeworks may not achieve milestones or receive additional payments or royalties under its collaborations; regulatory agencies may impose additional requirements or delay the initiation of clinical trials; the impact of new or changing laws and regulations; market conditions, including the impact of tariffs; potential negative impacts of FDA regulatory delays and uncertainty around recent policy developments, changes in the leadership of federal agencies such as the FDA, staff layoffs, budget cuts to agency programs and research, and changes in drug pricing controls; the impact of pandemics and other health crises on Zymeworks’ business, research and clinical development plans and timelines and results of operations, including impact on its clinical trial sites, collaborators, and contractors who act for or on Zymeworks’ behalf; zanidatamab may not be successfully commercialized; Zymeworks’ business strategy related to anticipated and potential future milestones and royalty streams and existing and potential new partnerships may not be successfully implemented; Zymeworks’ evolution of its business strategy may not deliver meaningful shareholder returns; Zymeworks may be unsuccessful in actively managing and/or aggregating revenue-generating assets alongside its active R&D operations; ongoing and future clinical trials may not demonstrate safety and efficacy of any of Zymeworks’ or its collaborators’ product candidates; data providing early validation of our antibody drug conjugate platform and next generation pipeline programs may not be replicated in future studies; Zymeworks’ assumptions and estimates regarding its financial condition, future financial performance and estimated cash runway may be incorrect; inability to maintain or enter into new partnerships or strategic collaborations; the inability of Zymeworks to identify and consummate a strategic acquisition; and the factors described under “Risk Factors” in Zymeworks’ quarterly and annual reports filed with the Securities and Exchange Commission (copies of which may be obtained at www.sec.gov and www.sedarplus.ca). 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) ZYMEWORKS INC.Selected Consolidated Balance Sheet Data(In thousands) 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) Contacts: Investor Inquiries:Shrinal InamdarVice President, Investor Relations(604) 678-1388 [email protected] Media Inquiries: Diana PapoveVice President, Corporate Communications(604) 678-1388  [email protected] A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/787f573b-920d-41e6-b487-e6d8add0c85c

Interested in Jazz Pharmaceuticals PLC? Here are five stocks we like better. Jazz Pharmaceuticals reported record second-quarter revenue of $1.21 billion, up 16% year over year, and raised its 2026 revenue outlook to $4.60 billion–$4.75 billion. Growth was led by sleep and epilepsy products: XYWAV sales rose 13% to $471 million, Epidiolex sales increased 16% to $292 million, and Jazz now expects double-digit full-year XYWAV growth. Oncology momentum continued, with portfolio sales up 32%; Jazz is awaiting an FDA decision by Aug. 25 on zanidatamab for first-line HER2-positive metastatic GEA and remains confident in approval. Zymeworks Offers Hope for More than Just Long-Term Investors Jazz Pharmaceuticals (NASDAQ:JAZZ) reported second-quarter 2026 revenue of $1.21 billion, up 16% from a year earlier, as growth across its sleep, epilepsy and oncology portfolios drove record quarterly sales. The company raised its full-year revenue outlook and said it is preparing for a potential August approval and launch of zanidatamab in first-line HER2-positive metastatic gastroesophageal adenocarcinoma, or GEA. President and Chief Executive Officer Renee Gala said the company’s first-half performance reflected demand for its commercial medicines, coordinated execution across its portfolio and progress on long-term growth initiatives. Jazz now expects 2026 total revenue of $4.60 billion to $4.75 billion. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Top Marijuana Stocks: Plenty of Investment Opportunities Abound (You're not Late to the Game) “The momentum we’ve built in the first half of the year provides us with confidence to raise our full-year revenue guidance,” Gala said. XYWAV, Jazz’s low-sodium oxybate therapy for narcolepsy and idiopathic hypersomnia, generated $471 million in second-quarter net product sales, an increase of 13% year over year. Chief Commercial Officer Sam Pearce said the medicine added approximately 525 net patients during the quarter, bringing total active patients to about 17,125, up more than 12% from a year earlier. → MarketBeat Week in Review – 07/27- 07/31 Of the quarterly patient additions, approximately 200 were in narcolepsy and 325 were in idiopathic hypersomnia, according to Pearce. He said demand remained strong and that high-sodium generic oxybate products had so far had limited effect on the franchise. Chief Financial Officer Phil Johnson said Jazz now expects double-digit XYWAV growth for the full year, compared with its prior expectation for results ranging from flat to mid-single-digit growth. The revised outlook reflects slower-than-anticipated uptake of high-sodium generics, he said. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Jazz raised its rare sleep revenue outlook to a range of $2.025 billion to $2.125 billion for 2026. The company said it continues to invest in digital outreach, media spending and patient-support programs for XYWAV. Epidiolex reported net product sales of $292 million, up 16% year over year. Pearce attributed the increase primarily to underlying demand in pediatric and adult settings, including continued growth in long-term care. He said there were no significant unusual U.S. inventory movements during the quarter, though Johnson noted that comparisons with the prior-year period benefited from one-time ex-U.S. pricing adjustments and foreign-exchange effects. Jazz has submitted a new drug application to the Food and Drug Administration for a capsule formulation of Epidiolex for its currently approved indications: Lennox-Gastaut syndrome, Dravet syndrome and tuberous sclerosis complex. The company also plans new studies in adult Lennox-Gastaut syndrome, developmental and epileptic encephalopathies, and juvenile myoclonic epilepsy. Jazz’s oncology portfolio grew 32% year over year in the quarter. Zepzelca generated $106 million in net product sales, up 42%, while Modeyso contributed $48 million and Ziihera recorded $15 million. Pearce said Zepzelca’s growth was driven by adoption in the first-line maintenance setting for metastatic small cell lung cancer, which offset a declining second-line business. Jazz estimates that first-line maintenance now accounts for 30% to 40% of overall U.S. Zepzelca sales. Robert Iannone, Global Head of R&D and Chief Medical Officer, said Jazz plans to submit a labeling supplement to remove Zepzelca’s second-line indication during the third quarter, based on results from the LAGOON trial and discussions with the FDA. The first-line maintenance indication will not be affected. Modeyso, launched in August 2025, had treated more than 600 patients through the end of the second quarter, according to Pearce. Jazz expects the overall-survival interim analysis for its Phase III ACTION trial of Modeyso to occur in the first half of 2027. Ziihera, Jazz’s zanidatamab product, has achieved more than 50% of the addressable U.S. market in second-line biliary tract cancer since launch, Pearce said. The company is awaiting an FDA decision by its Aug. 25 Prescription Drug User Fee Act date for zanidatamab in first-line HER2-positive metastatic GEA. Iannone said Jazz had been “productively engaged” with the FDA and remained highly confident in approval on or before the PDUFA date. He also said the company expects results from a second interim overall-survival analysis of zanidatamab plus chemotherapy in the third quarter. Jazz cited published Phase III HERIZON-GEA-01 results showing median overall survival of 26.4 months for zanidatamab plus tislelizumab and chemotherapy, more than seven months longer than the trastuzumab control arm. The company said it has submitted the data to oncology pathways and the National Comprehensive Cancer Network for potential guideline consideration. Johnson said non-GAAP adjusted gross margin declined slightly year over year because Zepzelca and Modeyso carry third-party royalties. Non-GAAP adjusted selling, general and administrative expenses and research and development expenses each rose 11%, reflecting commercial investments, clinical trial costs and zanidatamab-related spending. Jazz reported non-GAAP adjusted earnings per share of $5.71 for the quarter, including $0.94 in in-process research-and-development charges. Operating cash flow totaled $824 million for the first half of 2026, and the company paid off its 2026 convertible notes during the second quarter. The company modestly increased its SG&A expense guidance to support investment in XYWAV, Epidiolex, its rare-disease strategy and business-development activities. Gala said Jazz expects to announce one or more business-development deals in 2026, spanning opportunities from preclinical programs to commercial or near-commercial assets. Jazz recently entered a preclinical collaboration with AbCellera focused on discovering multispecific antibodies using a T-cell engager platform. Gala said the agreement complements Jazz’s oncology capabilities and its refined rare-disease strategy. Jazz Pharmaceuticals plc is a global biopharmaceutical company focused on developing and commercializing therapies in neuroscience and oncology. The company's research and development efforts target unmet medical needs in sleep disorders, hematologic malignancies, rare neurological conditions and solid tumors. Jazz's product portfolio includes therapies for narcolepsy, hepatic veno-occlusive disease, acute myeloid leukemia and other serious disorders. Flagship products from Jazz Pharmaceuticals include Xyrem® (sodium oxybate) and Xywav® (calcium, magnesium, potassium, and sodium oxybates) for the treatment of cataplexy and excessive daytime sleepiness in patients with narcolepsy. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Jazz Pharmaceuticals Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

VANCOUVER, British Columbia, July 16, 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 announced that management will report its second quarter 2026 financial results after market close on August 6, 2026. In light of the previously announced proposed acquisition of Theravance Biopharma, Zymeworks has elected not to host a second quarter earnings conference call after release of its financial results. We look forward to providing an update following the expected closing of the proposed acquisition of Theravance Biopharma, sharing greater visibility into the combined business and its strategic priorities. 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. Zymeworks’ 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 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 Zymeworks’ 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. Zymeworks’ 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. Contacts: Investor Inquiries:Shrinal InamdarVice President, Investor Relations(604) [email protected] Media Inquiries:Diana PapoveVice President, Corporate Communications(604) [email protected]

It's shaping up to be a tough period for Zymeworks Inc. (NASDAQ:ZYME), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It was not a great statutory result, with revenues coming in 93% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.59. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the most recent consensus for Zymeworks from eleven analysts is for revenues of US$299.8m in 2026. If met, it would imply a sizeable 269% increase on its revenue over the past 12 months. Earnings are expected to improve, with Zymeworks forecast to report a statutory profit of US$1.03 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$298.3m and earnings per share (EPS) of US$1.20 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates. See our latest analysis for Zymeworks It might be a surprise to learn that the consensus price target was broadly unchanged at US$40.15, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Zymeworks, with the most bullish analyst valuing it at US$58.00 and the most bearish at US$31.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Zymeworks' rate of growth is expected to accelerate meaningfully, with the forecast 5x annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zymeworks to grow faster than the wider industry. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Zymeworks analysts - going out to 2028, and you can see them free on our platform here. Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Zymeworks (ZYME) just posted a wider quarterly loss and lower than expected revenue, while also highlighting upcoming FDA and pipeline milestones that could shape how you think about the stock over the next year. See our latest analysis for Zymeworks. The earnings miss helped drive a 1 day share price return of 3.66% decline and a 7 day share price return of 3.41% decline, yet the 90 day share price return of 17.08% and 1 year total shareholder return of very large suggest momentum has been building over a longer stretch. If this kind of earnings driven move has your attention, it could be a good moment to look at other biotech ideas powered by AI through the 35 healthcare AI stocks. With shares up 17.08% over 90 days and a very large 1 year total return, yet still trading below some estimated value markers, the real question is whether Zymeworks is still mispriced or if the market is already accounting for future growth. The most followed narrative pegs Zymeworks' fair value at $40.08 versus a last close of $26.60, framing the stock as materially discounted on that view. Read the complete narrative. Curious what has to happen for that gap to close? The narrative leans on fast improving earnings, richer margins, and a premium future profit multiple. The exact mix of growth, dilution and discount rate assumptions might surprise you. Result: Fair Value of $40.08 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this depends on partners meeting clinical and regulatory milestones on schedule, and on early stage pipeline assets avoiding setbacks that could disrupt expected royalty streams. Find out about the key risks to this Zymeworks narrative. With that optimism in mind, do not just rely on headlines or a single narrative; move quickly, review the details, and see what stands out in the 3 key rewards If Zymeworks is on your radar, do not stop there. Broaden your watchlist with other ideas that match your goals and risk comfort. Target quality at a discount by scanning for companies flagged as potential bargains using the 51 high quality undervalued stocks. Protect your downside by focusing on businesses with stronger finances through the solid balance sheet and fundamentals stocks screener (44 results). Get ahead of the crowd by searching for lesser known opportunities in the screener containing 23 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ZYME. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Zymeworks Inc.? Here are five stocks we like better. Zanidatamab is approaching key regulatory milestones, including a U.S. PDUFA date of Aug. 25, 2026, and a China sBLA filing completion, which could unlock $250 million from Jazz and $50 million from BeOne in milestone payments. Zymeworks posted a wider Q1 net loss of $44.2 million as revenue fell to $2.4 million from $27.1 million a year earlier, mainly because prior-year milestone payments did not repeat. Despite that, the company ended the quarter with $403.8 million in cash resources and said it expects funding beyond 2028, even assuming full share buybacks. The company highlighted progress in its pipeline, including encouraging AACR data for ZW191 in ovarian and endometrial cancers and new preclinical pan-RAS ADC candidates. Zymeworks also pushed the expected IND for ZW1528 to 2027 while keeping ZW209 on track as a possible 2026 IND. Zymeworks Offers Hope for More than Just Long-Term Investors Zymeworks (NASDAQ:ZYME) reported a wider first-quarter loss as revenue declined from year-earlier milestone payments, while management highlighted regulatory catalysts for zanidatamab, progress across its antibody-drug conjugate pipeline and continued share repurchases. Chair and CEO Ken Galbraith said the company sees the Aug. 25, 2026, PDUFA date for zanidatamab in first-line HER2-positive gastroesophageal adenocarcinoma, or GEA, in the U.S. and the completion of an sBLA filing in China as “an important inflection point” for the company. Zanidatamab is partnered with Jazz Pharmaceuticals and BeOne. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Galbraith said potential approvals could trigger near-term milestone payments of $250 million from Jazz upon U.S. approval in GEA and $50 million from BeOne upon approval in China. He said Zymeworks also expects potential royalties from commercialization, while zanidatamab continues to be studied in additional settings, including breast cancer. CFO Kristin Stafford said total revenue was $2.4 million for the quarter ended March 31, 2026, compared with $27.1 million in the same period of 2025. The decline was driven mainly by non-recurring clinical milestones achieved in 2025 and lower development support and drug supply revenue. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Operating expenses totaled $49.5 million, down from $52.7 million a year earlier. Stafford said lower research and development expenses reflected reduced activity on later-stage and discontinued programs, partly offset by higher investment in early-stage clinical and preclinical programs and leadership transition costs. General and administrative expenses decreased due to lower professional fees, consulting and information technology-related costs, partly offset by higher salaries and benefits. Zymeworks reported a net loss of $44.2 million, compared with a net loss of $22.6 million in the prior-year period. Stafford attributed the year-over-year change primarily to the lower revenue from the absence of the 2025 milestones. → Years in the Making, AMD’s Upside Movement Has Just Begun The company ended the quarter with $403.8 million in cash resources, including cash equivalents and marketable securities, up from $270.6 million at Dec. 31, 2025. Stafford said that, based on current plans and assuming full execution of the company’s $125 million share repurchase program, Zymeworks expects existing cash resources plus anticipated regulatory milestone payments of $440 million tied to potential approvals of Ziihera in GEA in the U.S., Europe, Japan and China to fund planned operations beyond 2028. Stafford said that as of May 6, Zymeworks had used approximately $95.8 million of its approved $125 million repurchase program to acquire 3,930,734 shares at an average price of $24.37 per share, excluding commission expense and estimated excise tax. The company had approximately 73 million common shares outstanding as of that date. Galbraith said that since initiating its share repurchase program in 2024, Zymeworks has retired approximately 8.3 million shares through roughly $155.8 million in capital deployment at a weighted average repurchase price of about $18.70 per share. He said that represented more than 10% of common shares outstanding. Chief Scientific Officer Paul Moore said Zymeworks presented six posters, an oral presentation for ZW191 and two invited talks at the American Association for Cancer Research annual meeting. He focused on the company’s newly disclosed pan-RAS ADC platform, which includes three preclinical candidates using proprietary payloads. Moore said Zymeworks generated and screened more than 117 novel pan-RAS inhibitors derived from in-house scaffold work. He said the company prioritized ADC-suitable properties including efficacy in xenograft models, pharmacokinetics, bystander activity and tolerability. The company’s disclosed pan-RAS ADC candidates include: ZW439, a Claudin 18.2-targeting pan-RAS inhibitor ADC for RAS-mutated pancreatic cancer. ZW427, a Ly6E-targeting ADC for RAS-mutated cancers including colorectal, pancreatic and non-small cell lung cancer. ZW418, a biparatopic PTK7-targeting ADC for non-small cell lung cancer. Moore said the lead payload candidate, evaluated in a Ly6E pan-RAS ADC, showed no observed body weight loss, skin toxicity or gastrointestinal toxicity in non-human primates at doses up to 120 mg/kg, the maximum dose tested. He said a single dose in a mouse xenograft model produced sustained accumulation of the RAS payload in tumors compared with normal organs and durable RAS pathway inhibition in tumors out to 14 days. During the question-and-answer session, Moore said the pan-RAS ADCs are positioned to enter IND-enabling work, though the timing of clinical entry will depend in part on internal development priorities and potential partnerships. Chief Medical Officer Sabeen Mekan said ZW191 showed antitumor activity in data presented at AACR across ovarian and endometrial cancers. In ovarian cancer, she said tumor regression of at least 30% was observed in 68% of patients, with some degree of tumor shrinkage in 85%. Disease control was achieved in 94%, with an overall response rate of 56% across dose levels. In the clinically relevant 6.4 mg/kg to 9.6 mg/kg dose range, Mekan said disease control was observed in all ovarian cancer patients, with a confirmed overall response rate of 61%. She described the ovarian cohort as heavily pretreated, with all patients resistant to prior platinum therapy and most previously exposed to PARP inhibitors. In relapsed or refractory endometrial cancer, Mekan said tumor regression of at least 30% was observed in 50% of patients, and 70% had some degree of tumor shrinkage. Disease control was 80%, with an overall response rate of 40% across dose levels. At the 6.4 mg/kg to 9.6 mg/kg range, the overall response rate rose to 57%, with disease control in 86% of patients. Mekan said activity was seen regardless of folate receptor alpha expression level, including in low or negative tumors. She said safety findings mainly consisted of manageable cytopenias and gastrointestinal events, with no unexpected or new safety signals observed with longer follow-up. A roughly 60-patient dose optimization cohort is fully enrolled, and the company plans to present additional folate receptor alpha expression analyses at ESMO Gynae in June. Mekan said Zymeworks updated the ongoing ZW251 phase 1 trial to explore additional tumor types beyond hepatocellular carcinoma, including squamous non-small cell lung cancer and germ cell tumors, based on GPC3 expression. She said the trial continues to recruit on schedule, with clinical data expected at a future medical meeting when appropriate. Galbraith also said the company now expects an IND in 2027 for ZW1528, compared with its prior expectation of 2026. He said Zymeworks is taking more time to evaluate IL-33 biology and refine the clinical development strategy as recent clinical data in the field are presented. Galbraith said the core preclinical package, including GLP toxicology, is largely complete. Galbraith said ZW209 remains IND-ready and is still maintained as a potential IND in 2026. He added that Zymeworks continues to evaluate partnerships, collaborations and acquisitions while maintaining a disciplined capital allocation framework. Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity. At the core of Zymeworks' innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability. The article "Zymeworks Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Jazz announced U.S. FDA acceptance with Priority Review of Supplemental Biologics License Application (sBLA) for zanidatamab in first-line HER2-positive unresectable locally advanced or metastatic gastroesophageal adenocarcinoma (GEA); PDUFA target action date of August 25, 2026 China’s NMPA has accepted the sBLA for zanidatamab; the U.S. FDA has granted Breakthrough Therapy Designation to zanidatamab in combination with fluoropyrimidine- and platinum-based chemotherapy (±) TEVIMBRA, for this indication. Presented new data from our Phase 1 trial of ZW191 at AACR, continuing to support best-in-class potential in ovarian and endometrial cancers Presented on emerging RAS inhibitor antibody-drug conjugate platform at AACR $95.8 million utilized for share repurchases as of May 6, 2026 under the current authorized share repurchase program Reported $403.8 million in cash, cash equivalents and marketable securities as of March 31, 2026 Conference call with management today at 4:30 p.m. Eastern Time (ET) VANCOUVER, British Columbia, May 07, 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 first quarter March 31, 2026 and provided a summary of recent business highlights. “Having a U.S. PDUFA date established under priority review by the FDA for zanidatamab for the treatment of first-line HER2-positive advanced GEA, represents a significant regulatory and strategic milestone for Zymeworks. Zanidatamab's progress across additional clinical indications continues to highlight the value of our strategy to accumulate long-term cash flows from differentiated assets, whether generated internally or externally, with meaningful clinical and commercial potential. Pending global approvals in GEA, we expect zanidatamab to contribute significant milestone payments and to generate long-term, high-quality royalty revenues,” said Kenneth Galbraith, Chair and Chief Executive Officer of Zymeworks. “Over the past quarter, we have further strengthened our leadership team with the addition of individuals bringing extensive experience in strategic capital allocation, investment execution, and deal-making, enhancing our ability to identify and maximize value for our emerging royalty and R&D portfolios. We look forward to the potential of bringing an important new therapy to patients.” Recent Developments Wholly-Owned Programs In April 2026, we shared new preclinical and clinical data at the American Association for Cancer Research (AACR) Annual Meeting. Presentations included new preclinical combination insights from ZW191, as well as additional clinical data from Part 1 of our Phase 1 trial of ZW191: In Part 1 of our Phase 1 trial of ZW191 in platinum resistant ovarian cancer (PROC) patients, ZW191 demonstrated a confirmed objective response rate of 56% across all dose levels, with tumor regression observed in 68% of patients and disease control achieved in 94%. Notably, ZW191 demonstrated compelling efficacy in the 6.4-9.6 mg/kg dose range regardless of FRα expression, with confirmed objective response rates of 61% observed in both ovarian and 57% in endometrial cancers, with disease control observed in 100% of patients, and no new safety signals. These findings highlight the potential for ZW191 to benefit a broad patient population, including those with low or heterogeneous target expression. In March 2026, we announced that the U.S. Food and Drug Administration (FDA) has granted Fast Track designation to ZW191, for the treatment of patients with advanced or metastatic PROC. Part 2 of our Phase 1 study evaluating both 6.4 mg/kg and 9.6 mg/kg dose regimens in PROC is fully-enrolled with 60 total patients and remains ongoing. ZW191’s differentiated clinical profile in nonclinical studies, including favorable tolerability, bodes well for combination strategies including chemotherapy, targeted therapies, and immunotherapies that are mechanistically supported by preclinical studies. At AACR, we also presented preclinical data from our emerging RAS inhibitor antibody-drug conjugate (ADC) platform and three novel candidates designed to target treatment of RAS mutated cancers: A pan-RASi ADC platform with high anti-tumor activity against RAS-driven cancers ZW418, a biparatopic PTK7-targeting ADC incorporating a novel pan-RAS inhibitor payload for the treatment of non-small cell lung cancer (NSCLC) ZW427, a Ly6E-targeting ADC bearing a novel pan-RAS inhibitor payload for the treatment of RAS mutated cancers including colorectal, pancreatic, and NSCLC ZW439, a novel CLDN18.2-targeting pan-RAS inhibitor ADC for the treatment of RAS mutated pancreatic cancer “At AACR, our team presented three posters highlighting novel preclinical RAS-targeting ADC candidates, demonstrating the breadth of our capabilities in antibody engineering, linker chemistry, and the development of new proprietary payloads. These programs reflect a modular, highly tunable platform designed to address historically challenging targets. In parallel, updated Phase 1 data for ZW191 continue to reinforce the differentiated profile we have seen to date, with breadth and durability of responses, along with activity across varying levels of FRα expression, that we believe position ZW191 as a potential best-in-class therapy,” stated Adam Schayowitz, Ph.D., MBA., Head of R&D at Zymeworks. “Taken together, these data reflect the strength and scalability of our ADC platform and open up a range of future opportunities for both our ADC platforms and product candidates.” Partnered Programs Zanidatamab In April 2026, the U.S. FDA accepted our partner Jazz’s sBLA filing for Ziihera® (zanidatamab-hrii) combinations for the first-line treatment of adult patients with HER2-positive (HER2+) unresectable locally advanced or metastatic gastric, gastroesophageal junction (GEJ), or GEA for priority review with a PDUFA date of August 25, 2026. Pending approval, Jazz expects to commercially launch zanidatamab in the U.S. in this indication. Zymeworks is entitled to receive a $250.0 million milestone payment from Jazz related to approval of Ziihera in GEA in the United States. In April 2026, BeOne announced that the U.S. FDA has granted Priority Review to a sBLA for TEVIMBRA® (tislelizumab) in combination with Ziihera and chemotherapy for the first-line treatment of unresectable locally advanced/metastatic HER2+ gastric, gastroesophageal junction, or esophageal adenocarcinoma. In April 2026, BeOne also received acceptance for the filing of the sBLA for zanidatamab by the Center for Drug Evaluation of the China National Medical Products Administration (NMPA) to seek approval for zanidatamab for the first-line treatment for HER2+ locally advanced or metastatic GEA, including cancers of the stomach, gastroesophageal junction, and esophagus. BeOne has also received filing acceptance for an sBLA for tislelizumab by the CDE in China based on the HERIZON-GEA-01 data. Zymeworks is entitled to receive a $15.0 million milestone payment from BeOne related to approval of Ziihera in GEA in China. In April 2026, Jazz presented three posters and an oral presentation at AACR exploring zanidatamab’s utility across HER2-expressing solid tumors beyond biliary tract cancer and GEA. Jazz also announced that they will present multiple presentations on zanidatamab at the American Society of Clinical Oncology Annual Meeting, including a rapid oral presentation of PD-L1 subgroup data from HERIZON-GEA-01 evaluating zanidatamab combinations, and additional analyses of tolerability, biomarker response and real-world treatment patterns in first-line HER2+ GEA. The second interim overall survival analysis for the HERIZON-GEA-01 trial is expected in mid-2026. Our royalty revenue from Jazz and BeOne was $1.6 million in the three months ended March 31, 2026, driven primarily by net product sales of Ziihera by Jazz. Business Updates We recently announced leadership appointments and transitions to align with the evolution of our corporate strategy, including the following changes: Ms. Kristin Stafford appointed as Executive Vice President, Chief Financial Officer, effective April 1, 2026. Dr. Adam Schayowitz, Ph.D., MBA appointed as Executive Vice President, Head of R&D, effective April 9, 2026. Mr. Scott Platshon appointed as Executive Vice President, Chief Business Officer, effective April 9, 2026. Mr. Paul R. Schneider appointed as Executive Vice President, General Counsel, effective May 13, 2026. Share Repurchase Program In November 2025, the Board of Directors authorized a share repurchase program providing the ability to repurchase up to $125.0 million in common stock. As of May 6, 2026, the Company has utilized approximately $95.8 million of this approved repurchase program to acquire 3,930,734 shares at an average price of $24.37 per share (exclusive of commission expense and estimated excise tax). As of May 6, 2026, the Company had approximately 73.0 million common shares outstanding. Financial Outlook Operating Expense Discipline: The Company today is reiterating its previously provided guidance on adjusted gross operating expense (non-GAAP), which combines adjusted research and development (R&D) expense (non-GAAP) and adjusted general and administrative (G&A) expense (non-GAAP) (excluding stock compensation expense), reflecting a disciplined framework of approximately $300.0 million in aggregate adjusted gross operating expenditures (non-GAAP) over a three-year period ending December 31, 2028. The Company is also reiterating that it expects a greater proportion of adjusted gross operating expense (non-GAAP) to be incurred in 2026 and decline in 2027 and 2028, reflecting a deliberate and measured investment across R&D and G&A aligned with clearly defined strategic priorities. This outlook reflects current expectations, underscores the Company’s continued focus on cost discipline and capital allocation rigor, and does not include any potential acquisition-related expenses or new partnerships and collaborations. The Company’s GAAP gross operating expenses in 2025 were $198.5 million and the Company currently expects adjusted gross operating expenses (non-GAAP) in 2026 to be approximately 20% lower than adjusted gross operating expenses (non-GAAP) in 2025 of $170.5 million, excluding the impact of any acquisition-related expenses or new partnerships and collaborations. Financial Results for the Quarter Ended March 31, 2026 The key financial highlights for our 2026 first quarter results are as follows: Revenue – Total revenue was $2.4 million in 1Q-2026, compared to $27.1 million for the same period in 2025. The decrease was driven mainly by the achievement of non-recurring clinical milestone payments in 2025, as well as continued declines in development support and drug supply revenue from Jazz . Revenue in the current‑year period reflects ongoing collaboration activity and increased royalty revenue, which is expected to grow over time as commercial sales of Ziihera increase. Research and Development (R&D) Expenses – R&D expenses were $34.5 million in 1Q-2026, compared to $35.7 million for the same period in 2025, primarily reflecting a shift in program mix, as reduced spending on later‑stage and discontinued programs exceeded increased investment in early‑stage clinical studies and preclinical pipeline activities. General and Administrative (G&A) Expenses – G&A expenses were $15.1 million in 1Q-2026, compared to $17.0 million for the same period in 2025. The decrease was primarily driven by lower professional fees, consulting, and information technology‑related costs reflecting the absence of prior-year non-recurring initiatives and post-implementation cost reductions, partially offset by higher salaries and benefits reflecting previously disclosed leadership transitions. Other Income, net – Other income was $0.8 million in 1Q-2026, compared to $3.5 million for the same period in 2025. The change was driven primarily by $2.1 million of interest expense related to the royalty-backed note financing arrangement with Royalty Pharma executed in March 2026 and lower interest income. Net Loss – Net loss was $44.2 million in 1Q-2026, compared to a net loss of $22.6 million for the same period in 2025. The change in 2026 was primarily due to a decrease in revenue, driven by the non-recurring clinical milestones earned in 1Q-2025. Liquidity – As of March 31, 2026, we had $403.8 million of cash resources consisting of cash, cash equivalents and marketable securities, comprised of $244.3 million in cash and cash equivalents and $159.6 million in marketable securities. Based on current operating plans, and assuming full execution of the $125.0 million share repurchase plan, we expect our existing cash resources as of March 31, 2026, when combined with anticipated regulatory milestone payments of $440.0 million related to the potential approvals of Ziihera in GEA in the U.S., Europe, Japan, and China, to fund our planned operations beyond 2028. This anticipated cash runway does not take into account any contribution from additional future milestone payments or royalties related to Ziihera, other current licensed product candidates or contributions from future partnerships and collaborations. 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 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 $125.0 million share repurchase program, to fund Zymeworks’ planned operations beyond 2028 based on current operating plans; expected financial performance and future financial position, including anticipated adjusted gross operating expense (non-GAAP), adjusted research and development expense (non-GAAP) and adjusted general and administrative expense (non-GAAP) for the three-year period ending December 31, 2028, excluding any potential acquisition-related expenses or new partnerships and collaborations; and other information that is not historical information. When used herein, words such as “plan”, “believe”, “expect”, “may”, “continue”, “anticipate”, “potential”, “will”, “on track”, “progress”, “preserve”, “intend”, “could”, and similar expressions are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking statements are based upon Zymeworks’ current expectations and various assumptions. Zymeworks believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Zymeworks may not realize its expectations, and its beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements as a result of various factors, including, without limitation: any of Zymeworks’ or its partners’ product candidates may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable; Zymeworks may not be able to successfully execute the share repurchase program; the anticipated benefits of the share repurchase program may not be realized; Zymeworks may not achieve milestones or receive additional payments or royalties under its collaborations; regulatory agencies may impose additional requirements or delay the initiation of clinical trials; the impact of new or changing laws and regulations; market conditions, including the impact of tariffs; potential negative impacts of FDA regulatory delays and uncertainty around recent policy developments, changes in the leadership of federal agencies such as the FDA, staff layoffs, budget cuts to agency programs and research, and changes in drug pricing controls; the impact of pandemics and other health crises on Zymeworks’ business, research and clinical development plans and timelines and results of operations, including impact on its clinical trial sites, collaborators, and contractors who act for or on Zymeworks’ behalf; zanidatamab may not be successfully commercialized; Zymeworks’ business strategy related to anticipated and potential future milestones and royalty streams and existing and potential new partnerships may not be successfully implemented; Zymeworks’ evolution of its business strategy may not deliver meaningful shareholder returns; Zymeworks may be unsuccessful in actively managing and/or aggregating revenue-generating assets alongside its active R&D operations; ongoing and future clinical trials may not demonstrate safety and efficacy of any of Zymeworks’ or its collaborators’ product candidates; data providing early validation of our antibody drug conjugate platform and next generation pipeline programs may not be replicated in future studies; Zymeworks’ assumptions and estimates regarding its financial condition, future financial performance and estimated cash runway may be incorrect; inability to maintain or enter into new partnerships or strategic collaborations; the inability of Zymeworks to identify and consummate a strategic acquisition; and the factors described under “Risk Factors” in Zymeworks’ quarterly and annual reports filed with the Securities and Exchange Commission (copies of which may be obtained at www.sec.gov and www.sedarplus.ca). 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) ZYMEWORKS INC. Selected Consolidated Balance Sheet Data (In thousands) 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) GAAP to Non-GAAP Reconciliations (In thousands) (unaudited) (continued) Contacts: Investor Inquiries: Shrinal Inamdar Vice President, Investor Relations (604) 678-1388 [email protected] Media Inquiries: Diana Papove Vice President, Corporate Communications (604) 678-1388 [email protected]

Royalty Pharma reported a “strong start” to 2026 with 10% growth in portfolio receipts and 13% growth in royalty receipts, deployed more than $0.5 billion of capital (with $1.25 billion announced), repurchased 1 million shares for $50 million, raised the dividend 7%, and raised full‑year 2026 guidance to $3.325–$3.45 billion. The company struck material deals and saw major portfolio catalysts, including a $250 million funding for Zymeworks’ Ziihera royalty (peak sales modeled >$2 billion) and a $500 million synthetic royalty investment in Revolution Medicines’ daraxonrasib after trial data showed a near doubling of overall survival, driving expectations for substantial peak royalties. Balance-sheet strength and strategic positioning underpin growth: cash of $586 million, investment‑grade debt of $9.2 billion with leverage ~2.9x and an undrawn $1.8 billion revolver (Fitch upgrade to BBB), while the firm is expanding into R&D co‑funding (first‑quarter deals with J&J and Teva ~ $1 billion) to capture a large biopharma R&D opportunity. Interested in Royalty Pharma PLC? Here are five stocks we like better. How Royalty Pharma Prints Cash Without Biotech's Biggest Risks Royalty Pharma (NASDAQ:RPRX) reported what executives described as a “strong start” to 2026, driven by double-digit growth in cash receipts, active capital deployment and a series of clinical and regulatory developments across its portfolio, according to management’s remarks on the company’s first-quarter earnings call. Chief Executive Officer and Chairman Pablo Legorreta said the company delivered “10% growth in portfolio receipts” and “13% growth in royalty receipts,” which he characterized as Royalty Pharma’s recurring cash flows. Legorreta added that performance was supported by the “strength of our diversified portfolio,” and said the company maintained “returns on invested capital of around 14% and returns on invested equity of around 20%.” → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries 1 Trial, 2 Franchises: Zenas Stock Climbs on Landmark Data Legorreta also highlighted capital deployment during the quarter, citing “$1.25 billion of announced transactions on three attractive therapies,” with capital deployed “in excess of $0.5 billion dollars.” He said Royalty Pharma repurchased 1 million shares for $50 million and increased its dividend by 7% during the quarter. Chief Financial Officer Terry Coyne said royalty receipts grew 13% in the quarter and portfolio receipts grew 10% “considering a sizable year-over-year decline in milestones and other contractual receipts.” He noted operating and professional costs were 3.9% of portfolio receipts in the quarter, which he attributed to cash savings from the company’s internalization transaction completed last May. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches 4 Healthcare Stocks With Massive Gains—and More to Come Coyne reported net interest paid of $167 million, reflecting the company’s “semi-annual timing” of interest payments. Portfolio cash flow—defined as adjusted EBITDA less net interest paid—was $722 million for the quarter, and Coyne said net margin of “around 78%” demonstrated the business’s cash conversion. Marshall Urist, executive vice president and head of research and investments, detailed a strategic funding agreement signed in March with Zymeworks. Under the deal, Royalty Pharma provided $250 million upfront in exchange for 30% of Zymeworks’ royalty on Jazz and BeOne’s Ziihera, which Urist said translates into a “low-to-mid single-digit royalty” for Royalty Pharma. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Urist said Ziihera, a HER2-targeted bispecific antibody, is FDA-approved for metastatic biliary tract cancer and was recently submitted for approval in gastric cancer. He called the gastric cancer pivotal study results “impressive,” citing a “five to seven-month or nearly 40% overall survival advantage” over existing therapies. Urist said consensus models include Ziihera peak sales of “greater than $2 billion,” and the company expects the transaction to generate “an unlevered IRR in the low double digits.” Urist also discussed Revolution Medicines’ daraxonrasib, pointing to “unprecedented results” from the RASolute phase III trial in second-line pancreatic cancer. He said daraxonrasib “nearly doubled overall survival from just under seven months with chemotherapy to over 13 months.” Revolution Medicines plans to submit for approval to global regulators, including the FDA, he said. As a reminder of Royalty Pharma’s exposure, Urist said the company agreed in 2025 to provide up to $2 billion in long-term funding to Revolution Medicines. With the new data, Royalty Pharma has invested $500 million for a synthetic royalty starting at 4.55% on sales up to $2 billion with tiering beyond that. Based on consensus peak annual sales of “greater than $10 billion,” Urist said Royalty Pharma expects peak potential annual royalties of approximately $180 million on the currently funded amount, and “up to $340 million” if Revolution Medicines draws an additional $750 million tranche. Urist highlighted multiple portfolio catalysts and updates discussed during the quarter and after quarter end, including positive top-line results for MYQORZO in non-obstructive hypertrophic cardiomyopathy, positive results for Zenas’ obexelimab in IgG4-related disease, positive phase II results for Biogen’s litifilimab in cutaneous lupus, FDA approval of Denali’s Avlayah in Hunter syndrome, and Nuvalent’s filing of neladalkib in ALK-positive non-small cell lung cancer. He also noted Teva’s announced acquisition of Emalex for up to $900 million, with a planned second-half regulatory submission for ecopipam in Tourette’s syndrome, and reiterated Royalty Pharma’s tiered royalty terms on ecopipam. Chris Hite, now Chairman, Partnering and Investments, centered his remarks on Royalty Pharma’s view of “a major opportunity” in R&D co-funding with global biopharma companies. He said the company estimates “over $1 trillion of cumulative projected R&D spend” by global biopharma over the next five years, and described co-funding arrangements as a way for biopharma to “share risk at scale,” enhance ROI, expand R&D capacity and diversify pipelines. Hite said demand for co-funding increased after “more clarity around contract R&D accounting treatment,” and cited first-quarter deals with J&J and Teva totaling $1 billion in announced value. He also said the number of global biopharma companies using the funding modality has “doubled since 2020.” In response to a question about how the portfolio mix might evolve, Hite said Royalty Pharma has invested in development-stage products since 2012 and is “expanding the opportunity” through large-pharma co-funding. He referenced an appendix slide indicating roughly 85% of capital at work is in approved products, roughly 10% in development-stage products, and about 3% of development-stage capital has already had positive pivotal results. Coyne said the company is raising full-year 2026 guidance. Royalty Pharma now expects portfolio receipts of $3.325 billion to $3.45 billion, up from $3.275 billion to $3.425 billion previously. The updated outlook assumes royalty receipts growth of around 4% to 8% and incorporates headwinds including Promacta loss of exclusivity, the launch of a U.S. biosimilar for Tysabri, and “the potential impact of IRA,” Coyne said. He also said the company expects milestones and other contractual receipts to decrease from $128 million in 2025 to approximately $60 million in 2026. For the second quarter, Royalty Pharma guided to portfolio receipts of $740 million to $760 million, citing the seasonal impact of upward-tiering royalties that reset to a lower rate in the first quarter and flow through to Royalty Pharma’s receipts with a one-quarter lag. On the balance sheet, Coyne reported cash and equivalents of $586 million at the end of March 2026, investment-grade debt outstanding of $9.2 billion with a weighted average duration of around 12 years, and leverage of 2.9x total debt to adjusted EBITDA (2.7x net). Coyne noted Fitch upgraded the company’s credit rating to BBB from BBB- and said the company’s $1.8 billion revolver was undrawn. In Q&A, Coyne told analysts Royalty Pharma had “quite low leverage right now” and “a lot of financial flexibility” if deal flow increases. Coyne also provided an update on the company’s arbitration with Vertex, saying that based on the arbitration panel’s schedule, Royalty Pharma now expects the dispute to be resolved “by around the middle of 2027.” In response to an analyst question on the delay, Coyne said the timing change was “simply based on the availability of the arbitration panel.” On MYQORZO, Urist said the company did not assume success in the non-obstructive hypertrophic cardiomyopathy trial when it made its investment thesis, which was “premised on the obstructive” indication. He said adding non-obstructive to the label “can only be helpful” and represents upside relative to original estimates, and later added the broader label should be “a tailwind” as Cytokinetics launches aficamten. Asked about consolidation among smaller royalty players, Legorreta said it could reduce competition and argued Royalty Pharma has advantages including scale, an efficient tax structure, and access to capital at a lower cost. On China, Hite pointed to last year’s transaction with BeOne and said the company is monitoring out-licensing activity from China to Western multinationals. He also said Ken Sun, former head of Asia at Morgan Stanley, is starting soon and will help “catalyze” the effort. Legorreta addressed how the company uses data and artificial intelligence, saying Royalty Pharma has invested in data for “many years, decades” and cited claims data for 200 million Americans and electronic medical records for 44 million Americans with nine years of longitudinal data. He said the company uses data to improve investment decisions and to share insights with partners, which in some cases “has led to…better terms on transactions.” He also highlighted the recent hire of Lucas Glass as head of AI, saying Glass will work on implementing AI across the business, including automating diligence processes and strengthening evaluation capabilities. Legorreta closed by reiterating confidence in Royalty Pharma’s positioning, citing leadership in the expanding biopharma royalty market, a platform to invest in transformative products, expectations for “strong low volatility” growth through 2030 and beyond, and a track record of attractive returns. Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines. The company's transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors. The article "Royalty Pharma Q1 Earnings Call Highlights" was originally published by MarketBeat.

Vertex Pharmaceuticals (VRTX) came out with quarterly earnings of $4.47 per share, beating the Zacks Consensus Estimate of $4.23 per share. This compares to earnings of $4.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.76%. A quarter ago, it was expected that this drugmaker would post earnings of $5.07 per share when it actually produced earnings of $5.03, delivering a surprise of -0.79%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Vertex, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $2.99 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $2.77 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Vertex shares have lost about 6.5% since the beginning of the year versus the S&P 500's gain of 5.6%. While Vertex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Vertex was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.74 on $3.18 billion in revenues for the coming quarter and $18.96 on $13.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Zymeworks Inc. (ZYME), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7. This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Zymeworks Inc.'s revenues are expected to be $44.85 million, up 65.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report Zymeworks Inc. (ZYME) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research