Zymeworks Reports $122.7 Million Net Loss for 2024, Revenue Increases to $76.3 Million

Zymeworks Inc. reported a net loss of $122.7 million for the year ended December 31, 2024, compared to a net loss of $118.7 million in 2023. Revenue for 2024 totaled $76.3 million, a slight increase of $0.3 million from 2023. The increase in 2024 revenue included a $25 million milestone payment from Jazz Pharmaceuticals related to FDA approval of Ziihera® (zanidatamab-hrii) for the treatment of HER2-positive biliary tract cancer. Research and development expenses decreased by $9 million in 2024, primarily due to the transfer of the zanidatamab program to Jazz.

Significant changes compared to the previous year include the FDA's accelerated approval of Ziihera® in November 2024, resulting in $1.1 million in net product sales by Jazz in the final quarter of 2024. The company also saw a decrease in research and development expenses for zanidatamab due to the transfer of responsibility to Jazz, partially offset by increased expenses for other programs like ZW220 and ZW251. General and administrative expenses decreased by $8.9 million, primarily due to lower consulting and legal fees. A $17.3 million impairment charge was recorded due to the discontinuation of the zanidatamab zovodotin program.

Strategic developments included the initiation of a Phase 1 trial for ZW191 in November 2024, aiming to enroll 145 patients with advanced solid tumors. The company also announced the nomination of ZW209, a trispecific T-cell engager, as a development candidate, with an anticipated Investigational New Drug (IND) application submission in the first half of 2026. Furthermore, Zymeworks expanded into autoimmune and inflammatory diseases (AIID) with the nomination of ZW1528, planning an IND submission in the second half of 2026. The company also reprioritized resources towards ZW251, planning an IND submission in mid-2025, pausing preparations for ZW220.

Key operational developments included the dosing of the first patient in the ZW191 Phase 1 trial and continued patient recruitment for ZW171. As of December 31, 2024, Zymeworks employed 286 people, with 203 engaged in research and development. The company's patent portfolio includes over 40 patent families, with over 260 issued patents, including 36 U.S. patents. The company's financial statements show a significant accumulated deficit of $830.3 million as of December 31, 2024, and they anticipate continued losses for the foreseeable future.

Zymeworks anticipates that its existing cash resources will fund operations for at least the next twelve months. However, the company acknowledges significant risks related to clinical trial outcomes, regulatory approvals, competition, and the need for substantial additional funding. The company's future success depends heavily on the successful development and commercialization of its product candidates, and the continued success of its strategic partnerships. The company also highlights risks associated with intellectual property protection, manufacturing, and compliance with extensive regulations in various jurisdictions.