Loading...
01/10 17:06
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals mixed signals: a net income increase, but decreased cash reserves. Positive updates include regulatory approvals and promising drug trials. However, management's vague responses in the Q&A, particularly on PFS analysis and third-party milestones, raise concerns. The absence of guidance changes and reliance on future milestones temper optimism. Consequently, the stock reaction is predicted to be neutral.
Total Revenue $27.6 million in the third quarter of 2025 compared to $16 million for the third quarter of 2024, representing a significant increase. The increase was primarily due to a $25 million nonrefundable milestone recognized from J&J in relation to clinical progress on pasritamig in Phase III studies in metastatic castration-resistant prostate cancer and $1 million of royalty revenues from Jazz and BeOne medicines. These increases were partially offset by a reduction in development support and drug supply revenue from Jazz and due to a nonrecurring milestone from GSK that was achieved in the third quarter of 2024.
Operating Expenses $49.7 million for the 3 months ended September 30, 2025, compared to $50.2 million for the same period in 2024, representing a decrease of 1%. The decrease was primarily due to a reduction in expenses from ZW220 and ZW251, zanidatamab and zanidatamab zovodotin and a decrease in personnel expenses. This was partially offset by an increase in preclinical and research expenses for our ZW209 and ZW1528 programs, progression of clinical studies for ZW171 and 191 and an increase in noncash stock-based compensation expense.
Net Loss $19.6 million for the 3 months ended September 30, 2025, compared to a net loss of $29.9 million for the same period in 2024. This was primarily due to an increase in revenue, partially offset by a decrease in interest income and an increase in income tax expense.
Cash, Cash Equivalents, and Marketable Securities $299.4 million as of September 30, 2025, which is a decrease compared to $324.2 million as of December 31, 2024. The decrease in cash resources did not include the $25 million milestone from J&J recognized in the third quarter and expected to be received in the fourth quarter.
ZW191 Phase I trial: Initial clinical data presented at the ENA conference in October showed early clinical validation of the ADC approach. The drug demonstrated a favorable safety profile and promising antitumor activity, with objective responses observed at doses as low as 3.2 mg/kg. Two doses (6.4 mg/kg and 9.6 mg/kg) were selected for optimization.
ZW251 Phase I trial: First patient dosed in a Phase I clinical trial targeting GPC3 in hepatocellular carcinoma. The study aims to enroll approximately 100 participants and will evaluate safety, maximum tolerated dose, and efficacy.
ZW1528 preclinical data: Presented at the European Respiratory Society Annual Congress, targeting respiratory inflammation with a bispecific inhibitor of IL-4 and IL-31.
Partnership with J&J: Recognized a $25 million development milestone for clinical progress of pasritamig in Phase III studies. Eligible for up to $434 million in future milestones and mid-single-digit royalties on global product sales.
Partnership with Jazz: Earned $1 million in royalties from Ziihera net product sales. Jazz presented data on zanidatamab showing durable responses and a favorable safety profile.
Financial performance: Total revenue increased to $27.6 million in Q3 2025 from $16 million in Q3 2024, driven by a $25 million milestone from J&J and $1 million in royalties. Operating expenses decreased by 1% year-over-year, and net loss reduced to $19.6 million from $29.9 million.
Share repurchase program: Completed $22.7 million of the $30 million authorized share repurchase program, funded by development milestones and royalties.
Portfolio management: Discontinued development of ZW171 due to unmet internal thresholds, reallocating resources to higher-priority programs.
Leadership changes: Appointed Dr. Adam Schayowitz as acting Chief Development Officer and welcomed new directors to align governance with strategic goals.
Regulatory and Clinical Development Risks: The company faces risks associated with regulatory approvals and clinical trial progress. Discontinuation of ZW171 highlights challenges in meeting internal thresholds for advancing therapies, which could impact the pipeline's success.
Financial Sustainability: Despite a decrease in net loss, the company experienced a reduction in cash resources from $324.2 million to $299.4 million. This could pose challenges in sustaining operations and funding future initiatives if anticipated milestones are not met.
Pipeline and Strategic Execution Risks: The decision to discontinue ZW171 reflects potential risks in pipeline prioritization and execution. Additionally, the reliance on partnerships for funding and development introduces dependency risks.
Market and Competitive Pressures: The company operates in a highly competitive oncology market, which could impact the adoption and success of its therapies. The need to demonstrate clear differentiation and efficacy is critical.
Supply Chain and Operational Risks: The company’s ability to efficiently manage clinical trials and supply chain logistics for its ADCs and other therapies is crucial. Any disruptions could delay progress and impact financials.
ZW191 Phase I Clinical Development: Enrollment for two dose optimization cohorts (6.4 mg/kg and 9.6 mg/kg) is expected to begin this quarter, with approximately 30 patients planned in each cohort. Additional data will be shared at a future medical conference.
ZW251 Phase I Clinical Development: The study is actively recruiting and aims to enroll approximately 100 participants across North America, Europe, and the Asia Pacific region. Part 1 will evaluate escalating doses to determine safety and maximum tolerated dose, while Part 2 will include randomized dose optimization at two selected doses.
Cash Resources and Funding Outlook: Existing cash resources, combined with anticipated regulatory milestones, are expected to fund planned operations into the second half of 2027, covering multiple catalyst events in the pipeline.
Partnership Revenue and Milestones: The company remains eligible to receive up to $434 million in development and commercial milestones from the J&J collaboration, in addition to potential mid-single-digit royalties on global product sales.
Strategic Partnerships and R&D Innovation: The company plans to continue leveraging partnerships to bring in external capital, accelerate development, and maintain control of R&D innovation while derisking clinical development.
Share Repurchase Program: As of November 4, 2025, the company completed share repurchases of $22.7 million out of the remaining $30 million under the previously authorized share repurchase program. This program was primarily funded from development milestones and cumulative royalties received from Jazz and BeOne related to initial regulatory approvals in biliary tract cancer in the U.S. and China. The program reflects the leadership team's confidence in the company's outlook, the strength of its pipeline, and its long-term commitment to shareholder value. The action aligns with a disciplined, balanced approach to capital allocation designed to drive sustainable long-term returns.
The earnings call reveals mixed signals: a net income increase, but decreased cash reserves. Positive updates include regulatory approvals and promising drug trials. However, management's vague responses in the Q&A, particularly on PFS analysis and third-party milestones, raise concerns. The absence of guidance changes and reliance on future milestones temper optimism. Consequently, the stock reaction is predicted to be neutral.
The earnings call summary indicates strong financial performance with a net income of $2.3 million compared to a loss in the previous year, revenue growth, and increased cash resources. The Q&A section reveals management's confidence in their pipeline and operational strategies, despite some unclear responses. The absence of significant negative trends or risks, along with optimistic guidance and strategic partnerships, supports a positive outlook for the stock price in the short term.
The earnings call summary presents a mixed picture: EPS beat expectations, indicating operational efficiency, but the absence of shareholder return plans and the inherent risks in a competitive biotech environment temper enthusiasm. The Q&A reveals management's cautious optimism and avoidance of specifics in some areas, which may raise concerns. Although financial metrics improved, guidance remains uncertain, leading to a neutral sentiment. Given the lack of market cap data, it's prudent to assume a moderate market reaction, resulting in a stock price movement prediction in the neutral range (-2% to 2%).
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
