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ZYME · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Zymeworks Inc. (ZYME) stock moving?
Zymeworks beat Q3 2026 estimates, reporting revenue of $256.5M against about $228.5M expected and EPS of $2.28 against $2.18. It raised FY2026 revenue guidance to $337M–$351M from $278M–$292M, well above the roughly $302.7M consensus, and lifted adjusted EBITDA guidance to $176M–$190M from $114M–$128M. Management credits the first-line HER2-positive GEA approval of Ziihera (which triggered a $250M U.S. approval milestone), the Theravance acquisition that added YUPELRI revenue, and a Roche collaboration on ZW209 that is pending HSR clearance. Caveats: much of the top-line strength looks milestone-driven and lumpy. Q3 royalty revenue was only $2.3M, and Viatris' YUPELRI net sales grew just 0.2% year over year, so the guidance raise leans on one-time items and deal timing. Three analysts raised price targets on Nov 10 (HC Wainwright $56, TD Cowen $39, Truist $36), all keeping Buy ratings. The stock closed at $31.46 on Nov 10, its highest close in the 30-day window, up about 8.5% from $28.99 on Nov 2 and about 6% since the Nov 6 close of $29.63. The Nov 10 session traded 1.69M shares, above the roughly 1.3M two-week average. The stock has been volatile, with a sharp drop to a $28.72 low on Nov 5 after touching $31.49 on Nov 4. Management elected not to hold an earnings call and plans an R&D Day on Feb 11, 2027.
News behind the analysis
- TD Cowen Maintains Buy on Zymeworks, Raises Price Target to $39TD Cowen reiterated its Buy rating on Zymeworks and raised its price target to $39 after the third-quarter results.
- Truist Securities Maintains Buy on Zymeworks, Raises Price Target to $36Truist kept its Buy rating and lifted its price target to $36 from $35, following the earnings release.
- HC Wainwright & Co. Maintains Buy on Zymeworks, Raises Price Target to $56HC Wainwright reiterated its Buy rating and raised its price target to $56, the highest target among the recent updates.
- Zymeworks Reports Third Quarter 2026 Financial Results and Raises Full-Year GuidanceZymeworks reported Q3 2026 revenue of $256.5 million and EPS of $2.28, and raised its full-year 2026 guidance.
- Zymeworks Raises FY2026 Sales Guidance from $278.000M-$292.000M to $337.000M-$351.000M vs $302.672M EstThe new FY2026 sales guidance of $337M to $351M sits well above the $302.7M consensus estimate.
- Zymeworks Q3 EPS $2.28 Beats $2.18 Estimate, Sales $256.460M Beat $228.465M EstimateZymeworks beat both EPS and revenue estimates for the third quarter, with sales of $256.5M against $228.5M expected.
- Truist Securities Maintains Buy on Zymeworks, Raises Price Target to $35Truist maintained its Buy rating and raised its price target to $35 ahead of the third-quarter report.
About Zymeworks Inc.
Zymeworks is a biotech company based in Vancouver, Canada. It discovered the HER2-targeted bispecific antibody zanidatamab (Ziihera) and now runs a mixed model: it collects royalties from licensed drugs and also develops its own pipeline of multispecific antibodies and antibody-drug conjugates. Its 2026 acquisition of Theravance Biopharma added royalty interests tied to GSK's TRELEGY inhaler.
How it makes money
Most of its revenue comes from partners rather than from selling drugs itself. It earns upfront, regulatory and sales-milestone payments plus royalties on zanidatamab, which Jazz Pharmaceuticals and BeOne Medicines sell. For example, it received a $250 million milestone when the FDA approved zanidatamab for gastroesophageal cancer in August 2026, bringing total payments from Jazz to about $650 million. It also collects TRELEGY-related royalty income through the Theravance deal, with a $100 million milestone from Royalty Pharma expected in early 2027, and gets smaller payments from platform licensing deals, such as with Johnson & Johnson. Because large milestone payments arrive irregularly, revenue can swing a lot from quarter to quarter.
What usually moves ZYME
- Zanidatamab sales growth and new approvals
- Timing of milestone payments
- TRELEGY royalty performance
- Pipeline and clinical trial results
- Share buybacks and acquisitions of more royalty assets