TD Cowen Initiates Zymeworks With ‘Buy’, Cites Ziihera’s ‘Blockbuster Potential’ In Biliary Tract Cancer Therapy

TD Cowen initiated coverage of Zymeworks with a ‘Buy’ rating, citing its antibody platforms and highlighting Ziihera (zanidatamab-hrii), a targeted therapy for biliary tract cancer, as a potential blockbuster.

The research firm expects critical clinical data in the second half of 2025.

TD Cowen anticipates Ziihera royalties will support Zymeworks' pipeline development throughout the next two years. 

Zymeworks shares closed up 5.2% at $12.43 on Tuesday, holding steady after-hours.

In November 2024, the U.S. FDA granted accelerated approval for Ziihera to treat previously treated, unresectable, and metastatic HER2-positive biliary tract cancer (BTC).

The approval was based on data from the HERIZON-BTC-01 trial, which showed a 52% objective response rate and a median duration of response of 14.9 months.

It also resulted in a $25 million milestone payment to the company, which can achieve further payments up to $500 million from regulatory milestones. 

Additionally, the company has access to $862.5 million from commercial milestones, along with tiered royalties ranging between 10% and 20%.

Jazz Pharmaceuticals markets Ziihera through an exclusive license agreement signed in late 2022 that gives them rights to zanidatamab throughout the U.S., Europe, Japan, and select global markets, except for certain Asia-Pacific regions licensed to BeiGene. 

Ziihera generated net sales of $2 million for Jazz Pharmaceuticals in the first quarter, while producing $0.2 million in royalties for Zymeworks.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

The stock has declined 16% so far in 2025.

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