Benzinga | Jan 20, 2022 07:03AM EST

Zymeworks To Cut Its Workforce By Almost 25%, Outlines 2022 & 2023 Priorities

Zymeworks Inc (NYSE:ZYME) said that in conjunction with the renewed focus on key priorities and cost-efficiency, ten members (or 50%) of the former senior management team would be leaving the Company.

* Additionally, in line with these reductions in the senior management team, a Company-wide decrease in the workforce will be initiated with a target of reducing employee headcount by at least 25% by the end of 2022.

* The Company held cash, cash equivalents, and short-term investments of approximately $250 million as of December 31, 2021.

* It reiterated its guidance on a financial runway to fund current operations through at least late 2022.

* For 2022 and 2023, Zymeworks will prioritize the completion of recruitment in HERIZON-BTC-01 and HERIZON-GEA-01 studies of zanidatamab by mid-2022 and the end of 2023, respectively.

* Related: Zymeworks' Zanidatamab Aces Mid-Stage Esophageal Cancer Trial.

* The Company will also finalize a clear clinical development path for ZW49 based on additional clinical data expected in 2022 from the Phase 1 trial.

* Zymeworks plans to select and advance two new antibody-drug conjugate or multispecific product candidates leveraging Zymeworks' therapeutic platforms to IND-enabling studies.

* It plans to submit related IND applications by the end of 2024.

* Price Action: ZYME shares closed at $13.46 on Wednesday.