ZYME - Zymeworks a buy at Wells Fargo on royalty streams future milestones

2023-03-21 11:18:17 ET

• Wells Fargo said that Zymeworks ( NASDAQ: ZYME ) is a buy citing the biotech's potential royalty streams and milestones from its lead oncology candidate.
• The firm has a $12 price target (~41% upside based on Monday's close).
• Derek Archila wrote that royalty streams from Jazz Pharmaceuticals ( JAZZ ) "offer nice floor value for the stock." Those streams are related to to the bispecific antibody zanidatamab in late-stage development for various cancers.
• The analyst gives a 75% probability of success for zanidatamab in biliary tract cancers with royalties coming in beginning in 2025.
• Although late-stage data on zanidatamab for gastric esophageal adenocarcinoma isn't expected from Jazz ( JAZZ ) until H2 2024, Archila is optimistic and added that the biologics's royalty and milestone streams could add as much as $10/share.
• Zymeworks ( ZYME ) is also partnered with Beigene ( BGNE ) on zanidatamab.
• Read why Seeking Alpha contributor ONeil Trader also sees Zymeworks ( ZYME ) as a buy.

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