Zymeworks Inc. (ZYME) has reported its fourth-quarter and full-year 2025 financial results while announcing a major $250 million royalty-backed financing agreement with Royalty Pharma, strengthening its balance sheet and extending its cash runway beyond 2028.
For the fourth quarter of 2025, Zymeworks recorded revenues of $2.5 million, compared with $31.0 million in the same quarter of 2024. The company posted a net loss of $41.2 million, versus $23.5 million in the prior year period. For the full year 2025, revenue totaled $106.0 million, up from $76.3 million in 2024, while the net loss narrowed to $81.1 million compared with $122.7 million in 2024.
Ziihera (zanidatamab-hrii), a HER2-targeted bispecific antibody developed by Zymeworks and marketed by Jazz Pharmaceuticals, is already approved in the United States for previously treated, unresectable or metastatic HER2-positive biliary tract cancer. The therapy is also being studied in gastroesophageal adenocarcinoma, where recent Phase 3 results showed encouraging survival benefits.
To support its long-term strategy, Zymeworks entered into a $250 million royalty-backed note financing with Royalty Pharma. Under the agreement, repayment will be made from 30% of worldwide tiered royalties on Ziihera until the note is fully repaid, while Zymeworks retains 70% of royalties during the repayment period. Once repayments are complete, full royalty rights revert to Zymeworks.
CEO Kenneth Galbraith said the financing provides non-dilutive capital that enhances flexibility for share repurchases, strategic acquisitions, and funding operations well into the next decade. Royalty Pharma's CEO Pablo Legorreta noted that the transaction reflects confidence in Ziihera's potential to change the treatment landscape for HER2-positive cancers.
Jazz plans to complete a sBLA in first-line HER2-positive gastroesophageal adenocarcinoma (GEA) during Q1 2026, in the U.S., with a potential launch in the second half of 2026.
In addition, the company is eligible to receive up to $440.0 million in milestone payments tied to regulatory approvals of Ziihera in GEA across the U.S., Europe, Japan, and China.
Zymeworks ended 2025 with $270.6 million in cash, cash equivalents, and marketable securities. The company expects this strengthened position, combined with the Royalty Pharma financing, to support operations beyond 2028.
ZYME has traded between $9.03 and $28.49 over the past year. The stock closed Friday's session at $23.29, down 2.18%.
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