Analyst Moves To Sidelines After Jazz Pharma Deal Shifts Zymeworks To Early Stage Pipeline

• SVB Leerink downgraded Zymeworks Inc (NASDAQ: ZYME) to Market Perform with a price target of $8, down from $19 following the recent divestiture of zanidatamab to Jazz Pharmaceuticals plc (NASDAQ: JAZZ) and the unveiling of the company's early stage pipeline.

• While the JAZZ/ZYME deal is robust and front-loaded, providing the company with significant free cash flow to fund operations.

• But based on discussions with JAZZ management, it appears unlikely that the company will opt to pursue some of the larger indications for zanidatamab, like breast cancer and colorectal cancer, which were significant value drivers for the model.

• The analyst thinks these assets are unlikely to become material components of the investment thesis until late 2023 or 2024.

• SVB notes Zymeworks now only has ADC ZW-49 as a clinical-stage asset which remains largely of uncertain value to many investors based on clinical profile relative to other treatments and difficulty in finding a viable therapeutic window.

• The analyst removed the breast cancer and colorectal opportunities, which were ~$1.4 billion and ~$522 million, respectively.

• Price Action: ZYME shares are down 3.72% at $6.21 on the last check Thursday.

Latest Ratings for ZYME

Date	Firm	Action	From	To
Feb 2022	Wells Fargo	Maintains		Overweight
Dec 2021	Raymond James	Downgrades	Strong Buy	Outperform
Dec 2021	SVB Leerink	Upgrades	Market Perform	Outperform

View More Analyst Ratings for ZYME

View the Latest Analyst Ratings

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• Jazz Obtains Exclusive Rights To Zymeworks' Cancer Candidate In Almost $2B Biobuck Deal

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