H.C. Wainwright has adjusted its price target on shares of Zymeworks (NASDAQ: NASDAQ:ZYME), a biopharmaceutical company, increasing it to $12.00 from the previous $10.00.
The firm maintained a Neutral stance on the stock. The adjustment follows the announcement that Zymeworks will present preclinical results for two of its antibody-drug conjugate (ADC) assets at the EORTC-NCI-AACR Symposium scheduled for October 2024.
The two preclinical ADC assets to be presented are ZW220 and ZW251. ZW220 is a NaPi2b-targeted topoisomerase-1 inhibitor ADC, which shows high expression in a significant percentage of ovarian, non-small cell lung, and endometrial cancers.
ZW251 targets glypican-3, which is expressed in a majority of hepatocellular carcinoma cases. These assets are notable for their potential therapeutic impact and limited expression in normal adult tissues.
H.C. Wainwright highlighted the promising preclinical studies of ZW220, which indicated superior internalization and anti-tumor activity in vitro and in vivo when compared to Roche's lifastuzumab vedotin, although Roche's product is not rated by the firm.
The analyst also pointed to upcoming value inflection points for Zymeworks, including the potential FDA approval of zanidatamab for second-line biliary tract cancer (BTC) on November 29, 2024, and the expected dosing of the first patients in clinical trials for ZW171 and ZW191 in the second half of 2024.
In other recent news, Zymeworks reported significant advancements in its Q2 2024 financial results. The company announced a robust cash position of $395.9 million and initiated a $60 million share repurchase program. Zymeworks also received a priority review for its zanidatamab Biologics License Application for biliary tract cancers in the U.S., with ongoing reviews in Europe and China.
In leadership changes, Leone Patterson has been appointed as Executive Vice President, Chief Business Officer, and Chief Financial Officer. In the clinical trials realm, Zymeworks presented promising results from a Phase 2 trial evaluating zanidatamab in combination with standard first-line chemotherapy for patients with HER2+ gastroesophageal adenocarcinoma. The trial showed a confirmed overall response rate of 84%, including an 11% complete response rate.
H.C. Wainwright reiterated a Neutral rating and a $10.00 price target for the company's shares, while Stifel maintains a Buy rating on Zymeworks shares with a price target of $21.00.
InvestingPro Insights
Following H.C. Wainwright's price target update on Zymeworks, a glance at real-time data and InvestingPro Tips offers additional context for investors. Zymeworks boasts a market capitalization of approximately $889.51 million, according to recent metrics. Despite a challenging financial performance with a reported revenue decline of 85.99% over the last twelve months as of Q2 2024, the company has shown a robust 174.82% quarterly revenue growth in the same period, illustrating potential signs of a turnaround.
InvestingPro Tips highlight that Zymeworks holds more cash than debt on its balance sheet, offering a degree of financial stability. Additionally, four analysts have revised their earnings estimates upwards for the upcoming period, suggesting growing optimism about the company's future performance. However, it's important to note that analysts do not anticipate the company will be profitable this year, and the firm suffers from weak gross profit margins, with a -93.37% gross profit margin over the last twelve months as of Q2 2024.
For investors seeking a deeper dive into Zymeworks' financial health and future prospects, additional InvestingPro Tips are available, providing a comprehensive analysis of the company's performance and potential. With the next earnings date set for November 1, 2024, and a fair value estimate of $13, closely monitoring Zymeworks' progress and updates may prove beneficial for informed investment decisions.
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