B.Riley Starts Zymeworks (ZYME) at Buy

B.Riley analyst Mayank Mamtani initiates coverage on Zymeworks (NASDAQ: ZYME) with a Buy rating and a price target of $30.00.

The analyst comments: "ZYME is a premier R&D focused multifunctional therapeutics biotech with a track record of delivering highly differentiated and/or clinically de-risked therapies to larger biopharma partners. This is evidenced by HER2 bispecific Ziihhera (zani) gaining FDA approval in 4Q24 and now being commercialized by partner Jazz Pharma (JAZZ), initially for HER2-positive biliary tract cancer (BTC), with expected indication expansion to gastric (GEA) and breast cancers (BC), that could total 2032E GEA/BC/BTC sales of $336M/$291M/$96M in the U.S. alone. We expect the upcoming JAZZ Ph3 HERIZON-GEA readout to present potential upside to the Street's relatively conservative estimates, particularly if the primary efficacy mPFS endpoint for the zani/chemo doublet and the zani/anti PD1/chemo triple combination replicates Ph2 results, i.e., $\sim$17-month and 12-month mPFS, respectively, demonstrating superiority to the historical benchmark established with prior-generation HER2-targeted Herceptin/chemo (up to $\sim$8 months mPFS). In the emerging wholly-owned pipeline, we believe FR-alpha targeted antibody-drug conjugate (ADC) ZW191, GPC3 targeted ADC ZW251, DLL3 targeted trispecific T cell engager (TriTCE) ZW209, and IL4AxIL33 bispecific ZW1528 could each have multi-billion-dollar valuation benchmarks if their compelling preclinical packages translate to differentiated human proof-of-concept data in 2026–2027."

For an analyst ratings summary and ratings history on Zymeworks click here. For more ratings news on Zymeworks click here.

Shares of Zymeworks closed at $16.92 yesterday.

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