Zymeworks(ZYME)2023-11-08 03:07Financial Data and Key Metrics Changes - For the nine months ended September 30, 2023, Zymeworks reported a net loss of 1.53 per diluted share, a 44% decrease from a net loss of 59.1 million, compared to 56.3 million from collaboration with Jazz [9][10] - Research and development expenses decreased to 155.6 million in the same period in 2022, with a non-GAAP decrease of 55.6 million from 390.2 million as of September 30, 2023, a net reduction of $102 million from December 31, 2022 [15] Business Line Data and Key Metrics Changes - The decrease in research and development expenses was attributed to the transfer of the zanidatamab program to Jazz, while preclinical expenses for ZW171 and ZW191 increased [11][12] - The company reduced its employee headcount by approximately 45% over the past 21 months, from 455 to 252 full-time employees [15] Market Data and Key Metrics Changes - The company expects to have cash resources to fund operations through at least the end of 2026, potentially beyond, due to non-dilutive inflows from licensing and collaboration agreements [19][64] Company Strategy and Development Direction - Zymeworks is focused on developing therapies for difficult-to-treat cancers, with a pipeline strategy termed "5 by 5," aiming to nominate five clinical trials and five new molecules by 2027 [30][32] - The latest IND candidate, ZW251, targets GPC3 for hepatocellular carcinoma, addressing a significant unmet need in liver cancer treatment [37][39] - The company is exploring the potential for ADCs and multi-specific antibodies to be used in combination with standard care therapies [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for zanidatamab to become a standard of care in first-line GEA patients, with upcoming pivotal data expected in 2024 [65][66] - The company is optimistic about the commercial opportunities for zanidatamab based on recent data and ongoing studies [86][88] Other Important Information - The company has secured a new office facility in Bellevue, Washington, to accommodate its remaining workforce after vacating its Seattle office [18] - Zymeworks is strategically planning for a longer-term R&D strategy beyond the current 5 by 5 pipeline [62][64] Q&A Session Summary Question: What are the opportunities for the GPC3 ADC relative to other modalities? - Management highlighted that Zymeworks is focusing on ADCs for GPC3, which differentiates their strategy from others exploring CAR T and other approaches [69][70] Question: What factors could extend the cash runway beyond 2026? - Management indicated that the current cash runway extends beyond 2026 without new partnerships, but additional collaborations could further enhance financial flexibility [72][73] Question: What types of combinations are being considered for the GPC3 ADC? - The company is considering combinations with standard of care therapies to maximize patient response rates and durability [76][78] Question: What is the status of IND enabling studies for leading preclinical assets? - Management confirmed that both ZW171 and ZW191 are on target for IND submissions in 2024, with further guidance expected next year [80][81] Question: How does the KEYNOTE-811 data impact the outlook for zanidatamab? - Management expressed optimism about zanidatamab's commercial opportunity based on recent data, indicating a stronger position than previously anticipated [86][88]