Zymeworks Reports 91% Revenue Decline and $44.2 Million Net Loss in Q1 2026

Zymeworks Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenue falling to $2.4 million from $27.1 million in the same period of 2025, marking a decrease of approximately 91%. This drop was primarily attributed to the absence of non-recurring milestone payments received in the previous year, including $14 million from GlaxoSmithKline and $3.1 million from Daiichi Sankyo. The company did, however, see an increase in royalty revenue from its collaboration with Jazz Pharmaceuticals and BeOne Medicines, which is expected to grow as commercial sales of its product Ziihera (zanidatamab-hrii) increase.

Operating expenses for Zymeworks decreased slightly to $49.5 million from $52.7 million year-over-year, driven by reduced research and development costs, which fell to $34.5 million from $35.7 million. The company reported a net loss of $44.2 million for the quarter, compared to a loss of $22.6 million in the prior year, resulting in a net loss per share of $0.59. As of March 31, 2026, Zymeworks had an accumulated deficit of $1.07 billion and cash resources totaling $403.8 million, consisting of cash, cash equivalents, and marketable securities.

In a strategic move, Zymeworks entered into a royalty sale agreement with Royalty Pharma in March 2026, selling a 30% interest in future royalties from Ziihera for $250 million. This transaction is expected to provide the company with additional liquidity to support ongoing operations and potential acquisitions. The company also repurchased 3.2 million shares of its common stock during the quarter under its 2025 Repurchase Program, which has a remaining capacity of approximately $29.2 million.

Zymeworks continues to focus on advancing its product pipeline, particularly Ziihera, which has received regulatory approvals in multiple jurisdictions for treating HER2-positive cancers. The company is also pursuing additional regulatory approvals and expects to receive up to $440 million in milestone payments related to Ziihera's commercialization. Looking ahead, Zymeworks anticipates continued operating losses as it invests in research and development and executes its strategic plan, which emphasizes disciplined capital allocation and the advancement of partnered programs.

Overall, Zymeworks is navigating a challenging financial landscape while positioning itself for future growth through strategic partnerships and product development. The company remains committed to optimizing its asset portfolio and enhancing shareholder value through its ongoing initiatives.