Zymeworks Raises $250M Royalty-Backed Loan, Extends Cash Runway Through 2028
Zymeworks secured $250M non-recourse financing from Royalty Pharma backed by 30% of Ziihera royalties, with repayment capped at 1.925x to fund buybacks, strategic deals and extend cash runway through 2028. In 2025 the company posted $106M revenue, up 39%, narrowed net loss to $81.1M and held $270.6M cash.
1. Royalty-Backed Note Financing
Zymeworks entered into a $250 million non-recourse royalty-backed note financing with Royalty Pharma secured by 30% of worldwide Ziihera royalties. Repayments are capped at 1.65x by December 31, 2033 or 1.925x thereafter, after which all royalty rights revert. The financing retains 70% of royalty cash flows and channels proceeds into share repurchases, potential strategic acquisitions and extends the company’s cash runway through 2028.
2. 2025 Financial Performance
For the full year 2025 Zymeworks reported $106.0 million in revenue, a 39% increase over 2024, reduced net loss by 34% to $81.1 million from $122.7 million and finished the year with $270.6 million in cash, cash equivalents and marketable securities.