Zymeworks Raises 2026 Outlook After Ziihera Milestone

The Tip Desk · November 12, 2026 · 4 min read

Third-quarter revenue was $256.5 million after a $250 million Jazz approval payment, and the company lifted full-year revenue guidance to as much as $351 million.

Zymeworks Inc. (ZYME) raised its 2026 financial outlook after a $250 million Jazz Pharmaceuticals milestone tied to U.S. approval of Ziihera for first-line HER2-positive advanced gastroesophageal adenocarcinoma, and after closing its Theravance Biopharma acquisition. The biotechnology company now expects total revenue of $337 million to $351 million, up from a prior range of $278 million to $292 million, and Adjusted EBITDA of $176 million to $190 million, up from $114 million to $128 million, excluding future transactions. The guidance is subject to Hart-Scott-Rodino clearance of a Roche collaboration the company expects in the fourth quarter of 2026.

Total revenue for the three months ended September 30, 2026 was $256.5 million, compared with $27.6 million a year earlier. The company said the increase was primarily due to the $250.0 million Jazz milestone earned after the August 2026 U.S. approval, partially offset by the absence of a $25.0 million Johnson & Johnson development milestone recognized in the third quarter of 2025. Net income was $173.7 million, or $2.28 a share on a diluted basis, versus a net loss of $19.6 million, or $0.26 a share, a year earlier. Income from operations was $177.6 million, versus an operating loss of $22.1 million.

Chair and Chief Executive Officer Kenneth Galbraith said Ziihera’s label expanded into first-line HER2-positive advanced GEA during 2026 and that the company completed the Theravance Biopharma acquisition, adding a recurring commercial cash-flow stream through YUPELRI. The company said it remains eligible for up to $190 million in additional global regulatory milestones related to ex-U.S. Ziihera approvals from Jazz and BeOne Medicines.

Royalty revenue from Jazz and BeOne was $2.3 million in the three months ended September 30, 2026, up from $1.8 million in the three months ended June 30, 2026, driven primarily by U.S. Ziihera net product sales. YUPELRI collaboration revenue increased 4% year over year. Quarterly U.S. net sales of $71.5 million for YUPELRI recognized by Viatris increased 0.2% year over year. The company said increased doses of YUPELRI pulled through the hospital channel grew at a double-digit rate year over year.

Theravance Biopharma closed on September 23, 2026. The company said the deal had a limited impact on third-quarter operating results given timing, and that Theravance contributed approximately $1.5 million of revenue, reflecting seven days of ownership. Post-closing, Zymeworks expects $13 million to $15 million of annualized overhead and corporate costs to be eliminated.

Selling, general and administrative expenses were $42.7 million, versus $14.1 million a year earlier, driven primarily by Theravance acquisition costs, including severance and transaction-related professional fees, and higher stock-based compensation. Research and development expenses were $36.1 million, versus $35.6 million, as lower spending on ZW171 and certain preclinical programs was largely offset by employee-related costs from the Theravance acquisition. Net other expense was $4.4 million, versus net other income of $3.8 million, driven primarily by interest expense on a March 2026 royalty-backed note with Royalty Pharma and lower interest income.

On October 23, 2026, Zymeworks announced an exclusive global collaboration with Roche on ZW209. Under the agreement, the company is eligible for a $55 million upfront payment, a $40 million payment upon initiation of a Phase 1b trial, up to $718 million in additional milestones, and tiered high single-digit to mid-teens royalties, subject to HSR. Roche will fund the Phase 1a trial and be responsible for subsequent global development and commercialization.

During 2026 the company accessed $600 million of non-dilutive financing through a non-recourse royalty-backed note and a non-recourse note with a weighted average cost of capital of less than 10%, supporting the Theravance acquisition and share repurchases. It said it currently has no plans for additional equity issuances. In the third quarter it repurchased 534,381 shares for $14.0 million. Cash, cash equivalents and short-term marketable securities were $100.5 million at September 30, 2026, versus $228.8 million at December 31, 2025. Accounts receivable were $413.9 million and long-term liabilities were $756.7 million.

The company plans to host an R&D Day in New York on February 11, 2027.