Key Highlights

  • Total Revenue was USD 256.5 million, compared with USD 27.6 million.
  • Net income was USD 173.7 million, compared with a net loss of USD 19.6 million.
  • A USD 250.0 million Jazz milestone was triggered by Ziihera.
  • The company acquired Theravance for USD 17.00 per share in cash.

Zymeworks Inc. (NASDAQ:ZYME) reported third quarter 2026 total revenue of USD 256.5 million, compared with USD 27.6 million in the third quarter of 2025, an increase of USD 228.9 million. Reported EPS was USD 2.28 and revenue was USD 256.46 million, compared with estimates of EPS of USD 2.27 and revenue of USD 227.40 million.

The company attributed the increase primarily to the USD 250.0 million milestone from Jazz Pharmaceuticals triggered by Ziihera's U.S. approval for GEA, partially offset by the absence of a USD 25.0 million development milestone from J&J recognized in 2025. Royalty revenue from Jazz and BeOne Medicines was USD 2.3 million, driven primarily by net product sales of Ziihera by Jazz in the United States.

Net income was USD 173.7 million, compared with a net loss of USD 19.6 million. For the nine months, total revenue was USD 263.5 million, compared with USD 103.5 million, an increase of USD 160.0 million, and Net Income was USD 84.5 million, compared with a net loss of USD 39.9 million.

Theravance Acquisition

Under the Merger agreement announced on June 29, 2026, Theravance shareholders received USD 17.00 in cash at closing for each share of Theravance common stock. The Acquisition was financed in part through a USD 350 million non-dilutive, non-recourse note from OMERS, with 75% of YUPELRI profit-share cash flows contractually assigned to OMERS to service the debt. The company used USD 217.5 million of its existing cash resources for the remaining purchase price, after using cash acquired from Theravance. Cash used in investing activities for the nine months primarily related to the payment of USD 532.0 million for the acquisition.

YUPELRI net sales recognized by Viatris were USD 71.5 million in the third quarter, an increase of 0.2% year over year. The acquired Business contributed approximately USD 1.5 million of revenue to the company during the quarter, reflecting seven days of post acquisition profit share.

Expenses and Other Items

Research and development expense was relatively consistent with the prior year quarter, increasing by USD 0.5 million, and decreased USD 7.8 million for the nine months. Selling, general and administrative expense increased USD 28.6 million for the quarter and USD 31.0 million for the nine months. Other expense, net, decreased USD 8.2 million for the quarter and USD 16.8 million for the nine months, primarily due to interest expense related to the Loan Agreement with Royalty Pharma executed in March 2026 and lower interest income on lower average cash and Investment balances. Income tax expense decreased USD 1.8 million for the quarter.

Liquidity

As of September 30, 2026, the company had USD 100.5 million of cash and cash equivalents and USD 413.9 million of accounts receivable, including the USD 250.0 million milestone receivable from Jazz. Since inception, it has received an aggregate of USD 600.0 million from non-dilutive financing arrangements secured by future royalty and other revenue streams. Cash used in Operating Activities was USD 101.7 million for the nine months, compared with USD 22.7 million. The accumulated Deficit was USD 1,009.5 million.

Jazz Milestone and Theravance

Zymeworks recorded a USD 250.0 million Jazz milestone triggered by Ziihera, which drove revenue of USD 256.5 million and net income of USD 173.7 million. The company acquired Theravance for USD 17.00 per share in cash, and the filing discloses the milestone receivable and the OMERS note structure.