Vancouver-based biotechnology firm Zymeworks endured a rocky 2022 that included substantial layoffs and an unsolicited offer from investment firm All Blue Capital to acquire the publicly traded company for US$10.50 per share.
Since the October low, however, shares in Zymeworks have surged more than 40%, approaching US$11, although the stock still remains down from its 2021 highs.
Some of this momentum hails from the BC company recently receiving a $50 million private placement from EcoR1 Capital.
“We are grateful for the ongoing commitment and additional financial support from our largest stockholder, EcoR1 Capital, as we work towards making a meaningful difference for people impacted by difficult-to-treat cancers and other serious diseases,” stated Kenneth Galbraith, Chief Executive Officer of Zymeworks, in December.
“The proceeds from this transaction allow us to further strengthen our financial position and extend our cash runway ahead of key milestones and events expected in 2024 and 2025,” he continued.
On that note, the biotech firm this month released an outlook for the next two years, which Galbraith expects to include “significant events in our progress to make a meaningful difference in the lives of cancer patients.”
“We’re looking forward to 2024 as we approach a pivotal Phase 3 data readout this year with our partners Jazz Pharmaceuticals and BeiGene from the HERIZON-GEA-01 clinical trial for our lead candidate, zanidatamab, in first-line gastroesophageal andenocarcinoma,” the CEO stated this week.
“Beyond zanidatamab, our growing global presence helps position us to achieve efficiency in clinical development, with a continued focus on advancing nominated product candidates from our ‘5 by 5’ portfolio and our ADVANCE R&D strategy,” he continued.
Claiming cash resources north of $450 million, Galbraith believes that “we have the resources and expertise in place to continue to make substantial progress in 2024 and 2025 to advance our fully unencumbered development programs and execute on our mission to improve the standard of care for difficult-to-treat diseases.”
Galbraith replaced Zymeworks cofounder Ali Tehrani, who served as CEO since 2003, in 2022.