Zymeworks Announces $60 Million Share Buyback Program

Zymeworks Inc., a clinical-stage biotechnology firm based in Vancouver, British Columbia, has announced that its Board of Directors has approved a Share Repurchase Program, which allows the company to buy back up to $60 million of its outstanding common stock. The company, which trades on Nasdaq under the ticker ZYME, is focused on developing a diverse range of novel, multifunctional biotherapeutics to improve the treatment of difficult diseases.

The initial phase of the Share Repurchase Program will involve $30 million in stock repurchases, which are expected to start promptly and continue throughout the latter half of 2024. Zymeworks plans to keep the remaining $30 million reserved for future repurchases, providing flexibility to adjust according to market conditions and growth opportunities.

Kenneth Galbraith, the Chair and CEO of Zymeworks, explained, “Our decision to undertake a Share Repurchase Program reflects our confidence in the future outlook of our business, the strength of our pipeline, and our commitment to delivering value to our stockholders. This strategic initiative allows us to efficiently use our excess capital and support our undervalued stock price, while maintaining flexibility to pursue additional growth opportunities as they arise.”

The funding for the repurchase program will come from the company’s robust balance sheet. Shares might be repurchased from time to time through open market transactions or other methods that comply with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. Factors such as business and market conditions, corporate and regulatory limitations, prevailing stock prices, and other considerations will determine the timing, number of shares repurchased, and prices paid for the shares. The company has the option to suspend or discontinue the Share Repurchase Program anytime without any obligation to purchase any specific amount of common stock.

Zymeworks is committed to discovering, developing, and commercializing innovative biotherapeutics. The company's mission is to make a significant difference in the lives of people suffering from challenging cancers and other diseases. Zymeworks uses its complementary therapeutic platforms and integrated drug development engine to engineer and develop unique antibody-based therapeutic candidates.

One of Zymeworks’ key developments is zanidatamab, a HER2-targeted bispecific antibody developed using the company’s proprietary Azymetric™ technology. Zymeworks has signed agreements with BeiGene, Ltd. and Jazz Pharmaceuticals Ireland Limited, granting them exclusive rights to develop and commercialize zanidatamab in different regions. Zanidatamab is currently undergoing multiple global clinical trials and is considered a potential best-in-class treatment for patients with HER2-expressing cancers.

A Biologics License Application (BLA) has been submitted to the U.S. Food and Drug Administration (FDA) seeking accelerated approval for zanidatamab as a treatment for previously-treated, unresectable, locally advanced, or metastatic HER2-positive biliary tract cancer (BTC). This application has been accepted and granted Priority Review. Additionally, a BLA has been accepted for review by China’s National Medical Products Administration (NMPA). If approved, zanidatamab would be the first HER2-targeted treatment specifically approved for BTC in both the U.S. and China.

Zymeworks continues to advance its extensive pipeline of product candidates, leveraging its expertise in both antibody-drug conjugates and multispecific antibody therapeutics to address significant unmet medical needs. The company’s therapeutic platforms have also been utilized through strategic partnerships with global biopharmaceutical firms.

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