Zymeworks to receive $250 million under a royalty-backed note financing from Royalty Pharma with repayments due from 30% of worldwide tiered royalties on Ziihera until fully repaidZymeworks to retain 70% of royalties on Ziihera sales per the agreement, with full royalty rights reverting to Zymeworks once the royalty payments to Royalty Pharma have ceasedProceeds strengthen Zymeworks’ balance sheet with non-dilutive capital and support its stock repurchase program, potential strategic acquisitions, and cash ...

Zymeworks to receive $250 million under a royalty-backed note financing from Royalty Pharma with repayments due from 30% of worldwide tiered royalties on Ziihera until fully repaidZymeworks to retain 70% of royalties on Ziihera sales per the agreement, with full royalty rights reverting to Zymeworks once the royalty payments to Royalty Pharma have ceasedProceeds strengthen Zymeworks’ balance sheet with non-dilutive capital and support its stock repurchase program, potential strategic acquisitions, and cash ...

Core Viewpoint - Zymeworks Inc. has entered into a $250 million funding agreement with Royalty Pharma, which will be structured as a non-recourse royalty-backed note, with repayments tied to 30% of worldwide tiered royalties from Ziihera® sales [1][2][3]. Funding Agreement - The agreement provides Zymeworks with non-dilutive capital, enhancing its flexibility for share repurchases and strategic acquisitions, while supporting its cash runway beyond 2028 [2][8]. - Royalty Pharma will receive repayments based on 30% of future royalties from Ziihera sales until cumulative payments reach either 1.65 times the note amount by December 31, 2033, or 1.925 times thereafter [3]. Royalty Structure - Zymeworks will retain 70% of royalties on Ziihera sales during the repayment period, with full rights reverting to Zymeworks once payments to Royalty Pharma cease [6][8]. - Under the collaboration with Jazz Pharmaceuticals, Zymeworks is eligible for tiered royalties of 10% to high teens on global sales up to $2 billion, and 20% on sales exceeding that amount [4]. - The collaboration with BeOne Medicines allows Zymeworks to receive mid-single to mid-double digit royalties on sales up to $1 billion, and 19.5% on sales above that threshold [5]. Milestone Payments - Zymeworks is set to retain all earned regulatory and commercial milestone payments, which could total up to $1.5 billion, including $440 million tied to future regulatory approvals for Ziihera [6][8]. Product Overview - Ziihera (zanidatamab-hrii) is a bispecific HER2-directed antibody indicated for treating adults with previously treated, unresectable or metastatic HER2-positive biliary tract cancer [10]. - The FDA has granted Ziihera Breakthrough Therapy designations for specific indications, highlighting its potential in treating difficult cancers [11]. Company Background - Zymeworks is a biotechnology company focused on developing novel biotherapeutics for challenging diseases, leveraging its proprietary Azymetric™ technology [12]. - Royalty Pharma is a leading buyer of biopharmaceutical royalties, funding innovation across the industry and holding a diverse portfolio of royalties from various commercial products [13][14].