Today's News

Vancouver, BC, April 29, 2022--(T-Net)--Zymeworks Inc. (NYSE: ZYME), a clinical-stage biopharmaceutical company developing next-generation multifunctional biotherapeutics, confirmed today that it has received an unsolicited, non-binding acquisition proposal from All Blue Falcons FZE ("ABF") and its affiliates to purchase the Company for $10.50 per share in cash, valuing the company at approximately US $773 Million (or $982 million CDN).

Zymeworks is a clinical-stage biopharmaceutical company headquartered in BC and says it is dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. Zymeworks' suite of therapeutic platforms and its fully integrated drug development engine enable precise engineering of highly differentiated product candidates.

All Blue Falcons FZE is a technology-focused investment firm headquartered in United Arab Emirates, and reportedly currently holds a small stake in Zymeworks, according to online sources.

It is reportedly associated (not confirmed) with All Blue Capital, a global investment firm that manages multiple alternative asset classes, including private equity, real estate, blockchain and through its strategic partners, hedge funds.

All Blue noted in a regulatory filing it had made the non-binding offer for $10.50 per share in cash, which represents a 116% premium to Wednesday's closing price of $4.86.

Zymeworks share price rose by more than 45% in after-hours trading, and is currently trading at $6.86/share US, up approxmately 36% on the offer (as of 10:00 AM PST on April 29th).

Kenneth Galbraith, Chair and Chief Executive Officer, Zymeworks Inc.

Zymeworks recently appointed senior experienced biotech industry executive Kenneth Galbraith as the company's new Chair and Chief Executive Officer, and made a number of senior management changes and appointments (as well as laying off staff) earlier this year.

The company also raised $115 million in new financing this year on February 1st (underwritten public offering of 11,035,000 common shares at $8.00/share).

The company reported a net loss of $211.8 million in 2021, on revenue of just $26.7 million.

Zymeworks shareholders have faced significant losses over the past year, with share prices falling aproximately 80% in the past 12 months (from $33.18 to $6.77 as of this writing).

The Zymeworks board of directors said in a release that it will "carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Zymeworks shareholders".

"The board reminds shareholders that no formal offer has been made by ABF, and as such there is no need for Zymeworks shareholders to take any action at this time. If a formal offer is made, it will be reviewed by the board with its advisors, and a formal recommendation by the board will be made to shareholders in due course".

Advisors

Kingsdale Advisors is acting as strategic shareholder and communications advisor to Zymeworks. Blake, Cassels & Graydon LLP and Wilson Sonsini Goodrich & Rosati are acting as counsel to the Company.

About Zymeworks Inc.

Zymeworks is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. Zymeworks' suite of therapeutic platforms and its fully integrated drug development engine enable precise engineering of highly differentiated product candidates.

Zymeworks' lead clinical candidate, zanidatamab, is a novel Azymetric HER2-targeted bispecific antibody currently being evaluated in multiple Phase 1, Phase 2, and pivotal clinical trials globally as a targeted treatment option for patients with solid tumors that express HER2. Zymeworks' second clinical candidate, ZW49, is a novel bispecific HER2-targeted antibody-drug conjugate currently in Phase 1 clinical development and combines the unique design and antibody framework of zanidatamab with Zymeworks' proprietary ZymeLink™ linker and cytotoxin. Zymeworks is also advancing a deep preclinical pipeline in oncology (including immuno-oncology agents) and other therapeutic areas.

In addition, its therapeutic platforms are being leveraged through strategic partnerships with global biopharmaceutical companies. For more information on our ongoing clinical trials visit www.zymeworksclinicaltrials.com.

For additional information about Zymeworks, visit www.zymeworks.com