Raymond James Upgrades Zymeworks, Says Encouraging Cancer Drug Is 'Born to Run'

Canadian biotech Zymeworks Inc. (NYSE: ZYME) over the weekend announced more data from an ongoing clinical trial of a drug to treat HER2-type cancers and announced a Phase 2 trial in another cancer drug, leading to a more bullish stance on the company’s stock from Raymond James.

The Analyst

Raymond James analyst David Novak upgraded Zymeworks from Outperform to Strong Buy while upping the target price from $36 to $40.

The Thesis

The new data presented at the ESMO conference demonstrates Zymeworks "was born to run," Novak wrote in a note.

The Vancouver-based biotech’s latest results, demonstrating what Novak called “highly encouraging antitumor activity,” could be a major step forward, he said, with the potential to “in time, transform the HER2 therapeutic landscape.

“With multiple potential clinical catalysts anticipated in the coming months, we expect additional positive data readouts, and thus are upgrading ZYME to a Strong Buy,” Novak wrote.

Price Action

Zymeworks shares traded around $24.79 at publication time.

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