Zymeworks(US:ZYME)2025-03-05 21:12Revenue Recognition and Financial Performance - The company recognized revenue of $19,228 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 $76,012,000 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, 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 $134,621,000 in 2024 from $143,619,000 in 2023, reflecting a reduction of approximately 5.5%[556]. - General and administrative expenses also decreased to $61,506,000 in 2024 from $70,446,000 in 2023, a decline of about 12.5%[556]. - The company reported a net loss of $122,695,000 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 $17.8 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 $17,287,000 in 2024, which was not present in 2023[556]. Assets and Liabilities - The total assets decreased to $463,091,000 in 2024 from $580,880,000 in 2023, a reduction of about 20.3%[555]. - Cash and cash equivalents significantly decreased to $66,103,000 in 2024 from $157,557,000 in 2023, a decline of approximately 58%[555]. - Accounts receivable increased to $55,815,000 in 2024 from $19,477,000 in 2023, representing a growth of about 186%[555]. - Total liabilities increased to $124,323,000 in 2024 from $116,074,000 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 $298,700 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 $50 million upfront payment and a $325 million payment following the BTC Data Transfer[678]. - The Company is eligible to receive up to $1.1 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 $6.0 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 $26.2 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 $11.79 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]. - 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].