Zymeworks (ZYME) 1 Aug 24 2024 Q2 Earnings call transcript
Zymeworks reported a net loss of $69.3 million for the second quarter of 2024, a decrease from the $75.5 million net loss in the same period last year. The decrease in net loss was primarily due to lower research and development and general and administrative expenses. Revenue for the second quarter of 2024 was $29.3 million, down from $42.6 million in the same period in 2023. This decrease was due to a decrease in revenue from Jazz for development support and drug supply, partially offset by a milestone payment of $8 million from BeiGene in relation to the acceptance of the BLA for zanidatamab in China. Overall operating expenses for the second quarter of 2024 were $110 million, a decrease of 11% year-over-year, due to a decrease in both research and development and general and administrative expenses. The company recorded a non-cash impairment charge of $17.3 million due to the discontinuation of the Zanidatamab zovodotin clinical development program.
Pipeline and Clinical Programs
Zymeworks made significant progress in the development of its pipeline, including the global regulatory review of its late-stage asset, zanidatamab, for second-line treatment of biliary tract cancers. The company received priority review of the Biologics License Application for zanidatamab in the United States, with a target action date of November 29, 2024. Jazz is also conducting a pivotal Horizon GEA-01 trial evaluating zanidatamab in first-line gastroesophageal adenocarcinoma, with top-line progression-free survival data expected in the second quarter of 2021. Zymeworks also transitioned two early-stage programs into clinical candidates, with IND applications cleared by the FDA for ZW191 and ZW171, and first-in-human studies planned to initiate in the second half of 2024. The company also made the decision to formally discontinue the clinical development program for its HER2-targeted antibody drug conjugate, zanidatamab zovadotin.
Looking Ahead
Zymeworks is focused on advancing its clinical pipeline, including the initiation of two Phase 1 trials in 2024 for non-small cell lung cancer, and the transition of two early-stage programs into clinical candidates. The company remains committed to its strategy of refocusing the business and building a diverse clinical stage product pipeline of Antibody Drug Conjugates and multi-specific antibody therapeutics. With a strong financial position and a clear focus on innovative treatments, Zymeworks is well-positioned to drive growth and deliver value for its shareholders.