Canada's Zymeworks Q1 revenue misses estimates on absence of prior milestone payments

Zymeworks

07/05/2026 21:36

Overview

Canada biotech firm's Q1 revenue and EPS missed analyst expectations

Revenue fell sharply yr/yr due to absence of prior milestone payments

Company repurchased $95.8 mln in shares under existing buyback program

Outlook

Company reiterates guidance for adjusted gross operating expenses of about $300 mln over 2026-2028

Adjusted gross operating expenses in 2026 expected to be about 20% lower than 2025's $170.5 mln

Company expects existing cash and milestone payments to fund operations beyond 2028

Result Drivers

REVENUE DECLINE - Co said Q1 revenue fell mainly due to absence of non-recurring milestone payments earned in prior-year period and continued declines in development support and drug supply revenue from Jazz

ROYALTY REVENUE - Ongoing collaboration activity and increased royalty revenue from Ziihera sales partially offset revenue decline, with royalty revenue expected to grow over time

EXPENSE SHIFT - R&D and G&A expenses decreased, reflecting reduced spending on later-stage and discontinued programs, lower professional fees and IT costs, and higher salaries and benefits due to leadership transitions

Company press release: ID:nGNX15MsvM

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$2.40 mln
$16.26 mln (6 Analysts)
Q1 EPS
Miss
-$0.59
-$0.19 (9 Analysts)
Q1 Operating Expenses
$49.53 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the biotechnology & medical research peer group is "buy"

Wall Street's median 12-month price target for Zymeworks Inc is $40.00, about 44.9% above its May 6 closing price of $27.61

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)