Zymeworks Announces Share Repurchase Program of up to $60 Million of its Common Stock
Zymeworks Inc. (Nasdaq: ZYME) has announced a $60 million Share Repurchase Program authorized by its Board of Directors. The company plans to initiate the program with $30 million in initial repurchases, starting promptly and continuing through the second half of 2024. The remaining $30 million will be reserved for future repurchases, allowing flexibility to adapt to market conditions and growth opportunities.
Kenneth Galbraith, Chair and CEO, stated that this decision reflects confidence in the company's future outlook, pipeline strength, and commitment to stockholder value. The program will be funded through Zymeworks' strong balance sheet and may be executed through open market transactions or other means, in accordance with SEC regulations. The timing, number of shares, and prices will depend on various factors, and the program can be suspended or discontinued at any time.
Zymeworks Inc. (Nasdaq: ZYME) ha annunciato un programma di riacquisto di azioni da 60 milioni di dollari autorizzato dal suo Consiglio di Amministrazione. L'azienda prevede di avviare il programma con 30 milioni di dollari in riacquisti iniziali, che inizieranno immediatamente e continueranno fino alla seconda metà del 2024. I rimanenti 30 milioni di dollari saranno riservati per futuri riacquisti, consentendo flessibilità per adattarsi alle condizioni di mercato e alle opportunità di crescita.
Kenneth Galbraith, Presidente e CEO, ha dichiarato che questa decisione riflette fiducia nelle prospettive future dell'azienda, nella solidità del portafoglio prodotti e nell'impegno verso il valore degli azionisti. Il programma sarà finanziato attraverso il forte bilancio di Zymeworks e potrà essere eseguito tramite transazioni nel mercato aperto o altri mezzi, in conformità con le normative della SEC. I tempi, il numero di azioni e i prezzi dipenderanno da vari fattori, e il programma potrà essere sospeso o interrotto in qualsiasi momento.
Zymeworks Inc. (Nasdaq: ZYME) ha anunciado un programa de recompra de acciones de 60 millones de dólares autorizado por su Junta Directiva. La compañía planea iniciar el programa con 30 millones de dólares en recompra inicial, comenzando de inmediato y continuando durante la segunda mitad de 2024. Los otros 30 millones de dólares serán reservados para futuras recompras, permitiendo flexibilidad para adaptarse a las condiciones del mercado y oportunidades de crecimiento.
Kenneth Galbraith, Presidente y CEO, declaró que esta decisión refleja confianza en las perspectivas futuras de la compañía, la fortaleza de su cartera de productos y el compromiso con el valor para los accionistas. El programa se financiará a través de la sólida balanza de Zymeworks y podrá ejecutarse a través de transacciones en el mercado abierto u otros medios, de acuerdo con las regulaciones de la SEC. El momento, la cantidad de acciones y los precios dependerán de varios factores, y el programa podrá ser suspendido o finalizado en cualquier momento.
Zymeworks Inc. (Nasdaq: ZYME)는 이사회에서 승인한
CEO인 Kenneth Galbraith는 이 결정이 회사의 미래 전망, 제품 파이프라인의 강력함 및 주주 가치를 향한 헌신에 대한 신뢰를 반영한다고 전했습니다. 이 프로그램은 Zymeworks의 강력한 재무 구조를 통해 자금을 조달하며, SEC 규정에 따라 공개 시장 거래 또는 다른 방법을 통해 실행될 수 있습니다. 프로그램의 시기, 주식 수 및 가격은 여러 요인에 따라 달라지며, 언제든지 프로그램이 중단되거나 종료될 수 있습니다.
Zymeworks Inc. (Nasdaq: ZYME) a annoncé un programme de rachat d'actions de 60 millions de dollars autorisé par son Conseil d'administration. La société prévoit de commencer le programme avec 30 millions de dollars de rachats initiaux, en commençant immédiatement et en se poursuivant jusqu'à la seconde moitié de 2024. Les 30 millions de dollars restants seront réservés pour de futurs rachats, permettant une flexibilité pour s'adapter aux conditions du marché et aux opportunités de croissance.
Kenneth Galbraith, Président et CEO, a déclaré que cette décision reflète la confiance dans les perspectives futures de l'entreprise, la solidité de son portefeuille de produits et l'engagement envers la valeur pour les actionnaires. Le programme sera financé par un bilan solide de Zymeworks et pourra être exécuté par le biais de transactions sur le marché ouvert ou d'autres moyens, conformément aux réglementations de la SEC. Le calendrier, le nombre d'actions et les prix dépendront de divers facteurs, et le programme pourra être suspendu ou interrompu à tout moment.
Zymeworks Inc. (Nasdaq: ZYME) hat ein Aktienrückkaufprogramm über 60 Millionen Dollar genehmigt, das von seinem Vorstand autorisiert wurde. Das Unternehmen plant, das Programm mit 30 Millionen Dollar an anfänglichen Rückkäufen umgehend zu starten und bis zur zweiten Hälfte des Jahres 2024 fortzusetzen. Die verbleibenden 30 Millionen Dollar werden für zukünftige Rückkäufe reserviert, um die Flexibilität zu gewährleisten, sich an Marktbedingungen und Wachstumschancen anzupassen.
Kenneth Galbraith, Vorsitzender und CEO, erklärte, dass diese Entscheidung das Vertrauen in die zukünftige Perspektive des Unternehmens, die Stärke der Produktpipeline und das Engagement für den Wert der Aktionäre widerspiegelt. Das Programm wird durch die starke Bilanz von Zymeworks finanziert und kann gemäß den SEC-Vorschriften durch Transaktionen auf dem offenen Markt oder auf andere Weise durchgeführt werden. Der Zeitpunkt, die Anzahl der Aktien und die Preise hängen von verschiedenen Faktoren ab, und das Programm kann jederzeit ausgesetzt oder eingestellt werden.
- Authorization of a $60 million Share Repurchase Program
- Initial $30 million repurchase to begin promptly
- Strong balance sheet to fund the repurchase program
- Demonstrates confidence in company's future outlook and pipeline strength
- Potential to support undervalued stock price
- Reduction in cash reserves that could be used for R&D or other growth initiatives
- Potential opportunity cost of not investing in new projects or acquisitions
Insights
Zymeworks' announcement of a
From a financial perspective, share repurchases can be seen as a positive signal. They typically indicate that management believes the stock is undervalued and can lead to improved earnings per share metrics. However, it's important to consider the opportunity cost. For a clinical-stage biotech company like Zymeworks,
The company's ability to fund this program through its existing balance sheet is noteworthy. It suggests strong cash reserves, which is particularly important for a biotech firm with ongoing clinical trials. Investors should monitor how this program affects Zymeworks' liquidity and its ability to fund its pipeline development.
While the repurchase program may provide some short-term support for the stock price, long-term value will ultimately depend on the success of Zymeworks' clinical programs and its ability to bring products to market. Investors should view this move as part of a broader strategy rather than a standalone indicator of the company's health or prospects.
Zymeworks' share repurchase program is an intriguing move for a clinical-stage biotech company. Typically, firms at this stage prioritize cash conservation for research and development. However, this decision suggests management's strong confidence in their pipeline and financial stability.
The company's focus on "novel, multifunctional biotherapeutics" places them in a cutting-edge area of biotechnology. Their approach to developing therapies for "difficult-to-treat diseases" indicates potential for high-value products if successful. The repurchase program might be seen as a signal that management believes their current valuation doesn't reflect the potential of their pipeline.
However, investors should be cautious. While the program demonstrates financial strength, it's important to ensure that R&D funding isn't compromised. The success of clinical-stage biotech companies heavily depends on their ability to progress candidates through clinical trials and ultimately to market approval.
The flexibility built into the program, with
Zymeworks' share repurchase program is a strategic move that sends several signals to the market. Firstly, it indicates management's confidence in the company's intrinsic value and future prospects. By committing to buy back shares, they're effectively saying they believe the stock is undervalued at current levels.
The phased approach to the repurchase program is noteworthy. By committing
However, investors should consider the broader implications. For a clinical-stage biotech company, capital is typically prioritized for research and development. The decision to allocate
The timing of this announcement is also interesting. Coming at a time when many biotech companies are facing funding challenges, Zymeworks' ability to initiate a share repurchase program could be seen as a differentiator. It may help attract investor attention and potentially support the stock price in the near term.
Ultimately, the success of this strategy will depend on Zymeworks' ability to execute on both its clinical programs and this capital return initiative. Investors should monitor how effectively the company balances these priorities going forward.
Zymeworks intends to commence the Share Repurchase Program with
VANCOUVER, British Columbia, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Zymeworks Inc. (Nasdaq: ZYME) (the “Company”), a clinical-stage biotechnology company developing a diverse pipeline of novel, multifunctional biotherapeutics to improve the standard of care for difficult-to-treat diseases, today announced that its Board of Directors has authorized a Share Repurchase Program under which the Company may repurchase up to
“Our decision to undertake a Share Repurchase Program reflects our confidence in the future outlook of our business, the strength of our pipeline, and our commitment to delivering value to our stockholders,” said Kenneth Galbraith, Chair and Chief Executive Officer of Zymeworks. “This strategic initiative allows us to efficiently use our excess capital and support our undervalued stock price, while maintaining flexibility to pursue additional growth opportunities as they arise.”
The program will be funded through the Company’s strong balance sheet, leveraging its financial capacity to repurchase shares. The shares may be repurchased from time to time in open market transactions, or other means in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-18 of the Exchange Act. The timing, number of shares repurchased, and prices paid for the shares under this program will depend on general business and market conditions as well as corporate and regulatory limitations, prevailing stock prices, and other considerations. The Share Repurchase Program may be suspended or discontinued at any time and does not obligate the Company to acquire any amount of common stock.
About Zymeworks Inc.
Zymeworks is a global clinical-stage biotechnology company committed to the discovery, development, and commercialization of novel, multifunctional biotherapeutics. Zymeworks’ mission is to make a meaningful difference in the lives of people impacted by difficult-to-treat cancers and other diseases. The Company’s complementary therapeutic platforms and fully integrated drug development engine provide the flexibility and compatibility to precisely engineer and develop highly differentiated antibody-based therapeutic candidates. Zymeworks engineered and developed zanidatamab, a HER2-targeted bispecific antibody using the Company’s proprietary Azymetric™ technology. Zymeworks has entered into separate agreements with BeiGene, Ltd. (BeiGene) and Jazz Pharmaceuticals Ireland Limited (Jazz), granting each exclusive rights to develop and commercialize zanidatamab in different territories. Zanidatamab is currently being evaluated in multiple global clinical trials as a potential best-in-class treatment for patients with HER2-expressing cancers. A Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) seeking accelerated approval for zanidatamab as a treatment for previously-treated, unresectable, locally advanced, or metastatic HER2-positive biliary tract cancer (BTC) has been accepted and granted Priority Review. A BLA has also been accepted for review by the Center for Drug Evaluation (CDE) of the National Medical Products Administration (NMPA) in China. If approved, zanidatamab would be the first HER2-targeted treatment specifically approved for BTC in the U.S. and China. Zymeworks is rapidly advancing a deep pipeline of product candidates based on its experience and capabilities in both antibody-drug conjugates and multispecific antibody therapeutics across multiple novel targets in indications that represent areas of significant unmet medical need. In addition to Zymeworks’ wholly owned pipeline, its therapeutic platforms have been further leveraged through strategic partnerships with global biopharmaceutical companies. For information about Zymeworks, visit www.zymeworks.com and follow @ZymeworksInc on X.
Cautionary Note Regarding Forward-Looking Statements
This press release includes “forward-looking statements” or information within the meaning of the applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include, but are not limited to, statements that relate to Zymeworks’ ability to execute the Share Repurchase Program, in whole or in part; expected timing and amount of repurchases; Zymeworks’ ability to pursue its business objectives following repurchases under the Share Repurchase Program; the potential addressable market of Zymeworks’ product candidates; Zymeworks’ development of its product candidates; the timing and status of ongoing and future studies and the related data; expectations and timing regarding future regulatory filings and approvals; the timing of and results of interactions with regulators; potential safety profile and therapeutic effects of zanidatamab and Zymeworks’ other product candidates; the commercial potential of technology platforms and product candidates and other information that is not historical information. When used herein, words such as “plan”, “believe”, “expect”, “may”, “continue”, “anticipate”, “potential”, “will”, “progress”, and similar expressions are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking statements are based upon Zymeworks’ current expectations and various assumptions. Zymeworks believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Zymeworks may not realize its expectations, and its beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements as a result of various factors, including, without limitation: Zymeworks may not be able to execute the Share Repurchase Program, in whole or in part; the anticipated benefits of the Share Repurchase Program may not be realized; any of Zymeworks’ or its partners’ product candidates may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable; Zymeworks may not achieve milestones or receive additional payments under its collaborations; regulatory agencies may impose additional requirements or delay the initiation of clinical trials; the impact of new or changing laws and regulations; market conditions; the impact of pandemics and other health crises on Zymeworks’ business, research and clinical development plans and timelines and results of operations, including impact on its clinical trial sites, collaborators, and contractors who act for or on Zymeworks’ behalf; clinical trials may not demonstrate safety and efficacy of any of Zymeworks’ or its collaborators’ product candidates; Zymeworks’ assumptions and estimates regarding its financial condition, future financial performance and estimated cash runway may be incorrect; inability to maintain or enter into new partnerships or strategic collaborations; and the factors described under “Risk Factors” in Zymeworks’ quarterly and annual reports filed with the Securities and Exchange Commission (copies of which may be obtained at www.sec.gov and www.sedar.com).
Although Zymeworks believes that such forward-looking statements are reasonable, there can be no assurance they will prove to be correct. Investors should not place undue reliance on forward-looking statements. The above assumptions, risks and uncertainties are not exhaustive. Forward-looking statements are made as of the date hereof and, except as may be required by law, Zymeworks undertakes no obligation to update, republish, or revise any forward-looking statements to reflect new information, future events or circumstances, or to reflect the occurrences of unanticipated events.
Contacts:
Investor Inquiries:
Shrinal Inamdar
Director, Investor Relations
(604) 678-1388
ir@zymeworks.com
Media Inquiries:
Diana Papove
Senior Director, Corporate Communications
(604) 678-1388
media@zymeworks.com
FAQ
What is the total amount authorized for Zymeworks' Share Repurchase Program?
When will Zymeworks begin its initial share repurchases?
How will Zymeworks fund the Share Repurchase Program?
Can Zymeworks suspend or discontinue the Share Repurchase Program?
