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Zymeworks(ZYME) - 2024 Q4 - Annual Report
ZYMEZymeworks(ZYME)2025-03-05 21:12
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Revenue Recognition and Financial Performance - The company recognized revenue of 19,228thousandfromJazzPharmaceuticalsfordrugsupplyrelatedtoongoingstudiesfortheyearendedDecember31,2024[551].−Totalrevenuefor2024was19,228 thousand from Jazz Pharmaceuticals for drug supply related to ongoing studies for the year ended December 31, 2024[551]. - Total revenue for 2024 was 76,304,000, a slight increase from 76,012,000in2023[556].−Thecompanyrecognizedmilestonerevenueof76,012,000 in 2023[556]. - The company recognized milestone revenue of 25,000 from Jazz Pharmaceuticals for the year ended December 31, 2024[674]. - Revenue from strategic partnerships for the year ended December 31, 2024, totaled 76,304,anincreasefrom76,304, an increase from 76,012 in 2023[674]. - The Company recognizes revenue when customers obtain control of promised goods or services, reflecting the expected consideration[570]. - The Company recognizes royalty income starting from the year ended December 31, 2024, based on net product sales reported by its commercial partner[578]. Expenses and Losses - Research and development expenses decreased to 134,621,000in2024from134,621,000 in 2024 from 143,619,000 in 2023, reflecting a reduction of approximately 5.5%[556]. - General and administrative expenses also decreased to 61,506,000in2024from61,506,000 in 2024 from 70,446,000 in 2023, a decline of about 12.5%[556]. - The company reported a net loss of 122,695,000for2024,comparedtoanetlossof122,695,000 for 2024, compared to a net loss of 118,674,000 in 2023, indicating a worsening of approximately 3%[556]. - The company recorded stock-based compensation expenses of 17.8millionin2024,comparedto17.8 million in 2024, compared to 8.1 million in 2023[558]. - The company recognized an impairment on in-process research and development (IPR&D) of 17,287,000in2024,whichwasnotpresentin2023[556].AssetsandLiabilities−Thetotalassetsdecreasedto17,287,000 in 2024, which was not present in 2023[556]. Assets and Liabilities - The total assets decreased to 463,091,000 in 2024 from 580,880,000in2023,areductionofabout20.3580,880,000 in 2023, a reduction of about 20.3%[555]. - Cash and cash equivalents significantly decreased to 66,103,000 in 2024 from 157,557,000in2023,adeclineofapproximately58157,557,000 in 2023, a decline of approximately 58%[555]. - Accounts receivable increased to 55,815,000 in 2024 from 19,477,000in2023,representingagrowthofabout18619,477,000 in 2023, representing a growth of about 186%[555]. - Total liabilities increased to 124,323,000 in 2024 from 116,074,000in2023,anincreaseofapproximately7.3116,074,000 in 2023, an increase of approximately 7.3%[555]. - As of December 31, 2024, the company's total marketable securities amounted to 258,101, down from 298,700in2023[632].StrategicFocusandRisks−Thecompanyisfocusedonexpandingitstherapeuticplatformsandantibodyengineeringexpertisetoenhanceproductcandidatecommercialization[15].−Thecompanyfacesuncertaintiesregardingtheabilitytomanagegrowtheffectivelyandcomplywithregulatorystandards,whichcouldimpactfutureperformance[14].−Thecompanyisreliantonthird−partymanufacturersforproductcandidatesupplies,whichposesrisksrelatedtoproductionandoperationalaspects[19].−Thecompanyisexposedtorisksassociatedwithglobaleconomicconditions,includinggeopoliticaleventssuchastheRussianinvasionofUkraine[17].−Thecompanymustnavigatepotentialdisruptionsinregulatoryapprovalsandclinicaltrialprogress,whichcoulddelayproductrevenue[15].PartnershipsandCollaborations−Thecompanyaimstoachievemilestonesandreceiveassociatedmilestonepaymentsandroyaltiesfromcollaborationagreements,includingtheAmendedJazzCollaborationAgreement[15].−Thecompanyemphasizestheimportanceofmaintainingstrategicpartnershipstorealizeanticipatedbenefitsandmarketopportunities[19].−TheCompanyreceivedatotalof298,700 in 2023[632]. Strategic Focus and Risks - The company is focused on expanding its therapeutic platforms and antibody engineering expertise to enhance product candidate commercialization[15]. - The company faces uncertainties regarding the ability to manage growth effectively and comply with regulatory standards, which could impact future performance[14]. - The company is reliant on third-party manufacturers for product candidate supplies, which poses risks related to production and operational aspects[19]. - The company is exposed to risks associated with global economic conditions, including geopolitical events such as the Russian invasion of Ukraine[17]. - The company must navigate potential disruptions in regulatory approvals and clinical trial progress, which could delay product revenue[15]. Partnerships and Collaborations - The company aims to achieve milestones and receive associated milestone payments and royalties from collaboration agreements, including the Amended Jazz Collaboration Agreement[15]. - The company emphasizes the importance of maintaining strategic partnerships to realize anticipated benefits and market opportunities[19]. - The Company received a total of 375 million in revenue from the Jazz Collaboration Agreement, including a 50millionupfrontpaymentanda50 million upfront payment and a 325 million payment following the BTC Data Transfer[678]. - The Company is eligible to receive up to 1.1billioninmilestoneandotherpaymentsfromGSK,including1.1 billion in milestone and other payments from GSK, including 110 million for each product developed[705]. - The Company has received an upfront technology access fee payment of 6.0millionfromGSKandrecognized6.0 million from GSK and recognized 2.5 million of milestone revenue in July 2024[708]. Stock and Equity - The weighted-average common stock outstanding increased to 75,846,681 shares in 2024 from 68,863,010 shares in 2023, an increase of about 10.4%[556]. - The company issued 3.35 million shares through At-The-Market sales, generating 26.2millionin2024[558].−ThestockrepurchaseprogramauthorizedonAugust1,2024,allowsfortherepurchaseofupto26.2 million in 2024[558]. - The stock repurchase program authorized on August 1, 2024, allows for the repurchase of up to 60,000 million of common stock, with 2,545,402 shares repurchased at an average price of 11.79pershareforatotalcostof11.79 per share for a total cost of 30,000 million[647][649]. - As of December 31, 2024, the company had 7,331,084 outstanding stock options as of December 31, 2024, with an average exercise price of 12.01[665].−Thecompanyrecordedstock−basedcompensationexpenseof12.01[665]. - The company recorded stock-based compensation expense of 16,716 in additional paid-in capital for the year ended December 31, 2024, compared to $8,196 in 2023[668].