Zymeworks (ZYME) Is Up 28.8% After Ziihera Phase 3 Win and Royalty Model Shift - Has The Bull Case Changed?

• On November 18, 2025, Zymeworks announced positive Phase 3 results for Ziihera (zanidatamab-hrii) in advanced HER2-positive gastroesophageal adenocarcinoma, alongside a US$125 million share repurchase program and the appointment of Scott Platshon as Acting Chief Investment Officer.
• This combination of clinical success, leadership changes, and a shift toward a royalty-driven model signals a focused effort to optimize future cash flows and build a diversified portfolio of healthcare assets.
• We'll assess how Ziihera's Phase 3 success and the new royalty-focused approach may reshape Zymeworks' investment case.

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Zymeworks Investment Narrative Recap

To be a shareholder in Zymeworks, you need to believe the company can convert significant clinical progress, like the strong Phase 3 results for Ziihera, into regulatory milestones, sustained royalty payments, and broader pipeline momentum. The recent trial success materially boosts the likelihood of near-term milestone revenues, but continued reliance on partners for product approvals remains the top risk, as any delays or commercial disappointments could quickly impact cash flow and valuation.

Among the recent developments, the US$125 million share repurchase program stands out. This move is closely linked to the company’s confidence in upcoming milestones for Ziihera and other licensed assets, as well as its shift to a royalty-driven model, providing a financial cushion if milestones are realized as anticipated.

However, investors should be aware that even after positive trial results, the potential for regulatory delays or partner execution issues remains very real...

Read the full narrative on Zymeworks (it's free!)

Zymeworks' outlook anticipates $150.9 million in revenue and $24.2 million in earnings by 2028. This scenario depends on a 7.1% annual revenue growth rate and a $97.9 million improvement in earnings from the current -$73.7 million.

Uncover how Zymeworks' forecasts yield a $34.20 fair value, a 44% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for Zymeworks, based on two investor models, range widely from US$1.43 to US$34.20 per share. As partners drive future milestone revenues, this difference invites you to weigh how reliance on external execution could influence returns.

Explore 2 other fair value estimates on Zymeworks - why the stock might be worth as much as 44% more than the current price!

Build Your Own Zymeworks Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zymeworks research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Zymeworks research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zymeworks' overall financial health at a glance.

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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.

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