Zymeworks(US:ZYME)2023-03-07 21:38Financial Performance - The company reported a consolidated loss for the year ended December 31, 2022, with total revenue of $XX million, reflecting a decrease of YY% compared to the previous year[559]. - The company has experienced significant losses since inception and requires substantial additional funding to support continued growth[19]. - The company is focused on achieving profitability through increased revenue from product sales and strategic market positioning[19]. - The company reported a net income of $124.3 million in 2022, a significant turnaround from a net loss of $211.8 million in 2021[569]. - Basic net income per common share was $1.91 in 2022, compared to a loss of $4.11 per share in 2021[569]. - Total stockholders' equity increased to $492,956 thousand as of December 31, 2022, up from $249,094 thousand in 2021[570]. - The company generated $144,109 thousand in net cash from operating activities in 2022, recovering from a cash outflow of $192,451 thousand in 2021[571]. - The company recognized upfront consideration of $375.0 million related to the license of intellectual property and $24.3 million for ongoing clinical research activities during the year ended December 31, 2022[564]. Revenue and Collaborations - Revenue from research and development collaborations surged to $412.5 million in 2022, up from $26.7 million in 2021, marking a growth of over 1440%[569]. - Revenue from strategic partnerships in 2022 totaled $412.5 million, a significant increase from $26.7 million in 2021[675]. - The company recognized $375 million in licensing and technology transfer fees from Jazz Pharmaceuticals, with $50 million recognized in November 2022 and $325 million in December 2022[678][679]. - The company is eligible for up to $525 million in regulatory milestone payments and up to $862.5 million in commercial milestone payments from Jazz, along with tiered royalties of 10% to 20% on annual net sales[682]. - A licensing agreement with Atreca allows the company to receive up to $210 million in option exercise fees and milestone payments, with $5 million recognized as revenue in 2022[683]. - The collaboration with BMS includes potential payments of up to $1.64 billion for ten programs, with $7.5 million received for one exercised option[692]. - The agreement with GSK allows for up to $1.1 billion in milestone payments, with $6 million received as an upfront technology access fee[699]. - The collaboration with Daiichi Sankyo includes potential milestone payments of $149.9 million, with $2 million received as an upfront fee[702]. - The Company is eligible for up to $1.45 billion in various license and milestone payments from the collaboration with Janssen, having received an upfront payment of $50.0 million and development milestones totaling $8.0 million[707]. Assets and Liabilities - Total current assets increased to $544.7 million in 2022 from $288.2 million in 2021, representing an increase of approximately 89%[568]. - Total assets increased to $648.7 million in 2022 from $389.1 million in 2021, an increase of approximately 67%[568]. - Current liabilities rose to $95.6 million in 2022 from $71.9 million in 2021, an increase of about 33%[568]. - The total liabilities rose to $87,468 million in 2022, up from $62,789 million in 2021, representing an increase of 39.4%[632]. - The company has a liability for contingent consideration of $1,248 million as of December 31, 2022, down from $1,498 million in 2021[632]. Research and Development - The company is focusing on expanding its therapeutic platforms and antibody engineering expertise to enhance product commercialization opportunities[17]. - The company continues to focus on developing next-generation multifunctional biotherapeutics, indicating a strong commitment to R&D[572]. - Research and development costs are expensed as incurred, with significant expenses related to clinical trials and contract research organizations[610][611]. - The Company recognized CEWS and CERS grants as reductions to wage and rent expenditures, indicating support received during the COVID-19 pandemic[609]. Regulatory and Compliance - The company is actively pursuing regulatory approvals for its product candidates, with a focus on minimizing delays in clinical trial progression[17]. - The company is committed to protecting its intellectual property rights and ensuring compliance with third-party license terms[17]. - The Company recognizes revenue when the customer obtains control of promised goods or services, reflecting the expected consideration[582]. - Revenue from non-refundable, upfront license fees is recognized when the license is transferred and the licensee can benefit from it[587]. Capital and Funding - The company has been actively involved in raising capital to support its clinical-stage biopharmaceutical operations[572]. - Zymeworks raised $107,534 thousand through public offerings in 2022, compared to no proceeds in 2021[571]. - The company issued 3,787,737 pre-funded warrants in a cashless transaction, resulting in the issuance of 3,787,675 common shares[642]. Tax and Financial Obligations - The Company reported a current income tax expense of $8,953 for the year ended December 31, 2022, compared to $437 in 2021[727]. - The Company has net operating losses carried forward for tax purposes in Canada amounting to approximately $314.7 million, down from $457.6 million in 2021[730]. - The total deferred tax assets as of December 31, 2022, are $156.9 million, a decrease from $191.0 million in 2021[729].