Zymeworks Inc. Q3 FY2024 earnings call

• Corporate updates: Leone joined in September 2024. The company completed the first $30 million of its $60 million share repurchase program. • Development program: FDA cleared IND applications for ZW171 and ZW191 in August. First patient dosed in Phase 1 trial of ZW171. Presented preclinical data on ZW220 and ZW251 at ENA conference. • Partner programs: Jazz provided updates on Zani, including long-term follow up data in metastatic DEA patients. Received a $2.5 million research milestone from GSK. • Clinical trials: Progress in Phase 1 trials for ZW171 and ZW191, with global clinical sites activated. Anticipated IND filings for ZW220 and ZW251 in 2025.

For the nine months ended September 30, 2024, Zymeworks' revenue was $45.3 million. This included $32.8 million from development support and drug supply revenue from Jazz, $8 million from BeiGene milestone revenue, $2.5 million from GSK milestone revenue, and $2 million from BeiGene and other partners for research support payments. Operating expenses for the nine months ended September 30, 2024, were $160.2 million, a decrease of 8% year-over-year compared to $173.7 million in the same period of 2023. The decrease was due to lower research and development and general and administrative expenses.

• Cash runway: With $374.9 million in cash resources as of September 30, 2024, the company has an expected cash runway into the second half of 2027. • R&D Day: Upcoming R&D Day to provide updates on solid tumor targeting antibody drug conjugates and T-cell engager molecules, including nomination of a tri T-cell engager. • Partnerships: Eligible for future milestone payments and royalties from partnerships with Jazz and GSK.

• Industry risks: Usual risks and uncertainties associated with companies in the biotech industry. • Clinical trial risks: Uncertainties related to the success of clinical trials for ZW171, ZW191, and other candidates. • Partnership risks: Dependence on partners for development and commercialization of products, with uncertainties in milestone payments and royalties.

Q: With respect to the ongoing Phase 1 trials for 171 and 191, how is dose optimization being thought about?

A: Kenneth Galbraith said in the dose escalation phase, they hope to understand tolerability profile with diverse patients. Expect to backfill and explore doses, and move into expansion cohorts to optimize one or two doses.

Q: How should we think about timelines to data for the wholly owned pipeline, especially lead mesothelin and FR alpha programs?

A: Kenneth Galbraith stated they won't provide guidance until they have a large enough dataset to share in a peer-reviewed scientific or medical meeting.

Q: How should we think of partnership revenue near term given the BTC's PDUFA date next month and GEA's top line next year?

A: Kenneth Galbraith said they can't provide much more about partnership revenue until milestones are received or royalties are earned, and to look for updates from Jazz on their upcoming earnings call.