Zymeworks Inc. (TSX:ZYME)(NYSE:ZYME) stock was up 8.2% in late afternoon trading on August 7. The Vancouver-based clinical-stage biopharmaceutical company has seen its stock surge over 80% in 2018 so far. Shares have nearly doubled up from the prior year.
Zymeworks released its second-quarter results on August 1. The big news for Zymeworks in the second quarter was the oral presentation it gave on its flagship ZW25 product at the American Society of Clinical Oncology (ASCO) meeting. This provided Zymeworks with the opportunity to present clinical data as it reiterated its positive capital position.
Revenue in the second quarter reached $22 million compared to $1.3 million in the prior year. Zymeworks was awarded an $18-million upfront technology access fee that was related to a second licensing agreement with Daiichi Sankyo. It also garnered a $4-million research program expansion fee from Celgene.
Zymeworks nearly doubled-up its research and development expenditures from $8.3 million in Q2 2017 to $15.4 million in the most recent quarter. This was due to increased clinical costs for ZW25 and developments costs for ZW49.
It is still early days for Zymeworks, but the company is in a fantastic position to win big from ZW25 going forward. According to a report from Global Market Insights, the breast cancer therapeutics market is expected to post compound annual growth of 9% into 2024.
Zymeworks could be one of the most explosive long-term growth stocks still available on the TSX, and it is still relatively cheap when taking its potential into account.
