After declining sharply in the mid of the last year, Zymeworks Inc. (TSX:ZYME) (NASDAQ:ZYME) shares bounced back significantly last month, thanks to strong results related to its Phase 1 dose-escalation study. ZYME stock gained more than 33% of price appreciation in the last month, but the stock is still down 22% eight months.
Zymework’s stock is currently trading above $12 a share after the rally of 20% in Tuesday trade. The $304 million biotechnology company has a 52-week trading range of $6.25-$14.25.
Its trading volumes also spiked with the growth in share price. Its daily volume increased to 60,145 shares, compared to the average daily volume of 20,888.
Based on the preliminary results, its Phase 1 study for ZW25 in patients with HER2 showed that the treatment is working.
The company’s 22 patients are enrolled in the study, including 8 with gastric and esophageal (GE) cancer, 11 with breast cancer, and the remaining three with other HER2-expressing cancers. The partial response rate increased to 56% in breast cancer patients.
“The expanding dataset continues to show responses and durable disease control with both weekly and every other week dosing and demonstrates the potential of ZW25 to address unmet need across multiple indications,” said Dr. Diana Hausman, Chief Medical Officer of Zymeworks (ZYME).
Moreover, Zymeworks continues to receive a significant clinical benefit, thanks to its single agent treatment in gastric and breast cancer patients.
On the other hand, the company plans to enroll the second part of the study with the intent to utilize ZW25 every other week at 20 mg/kg.
Analysts have been placing bullish bets on Zymeworks stock, supported by the strong outcome of its phase 1 study. Among the 5 Wall Street analysts, four of them awarded it with the buy rating. Previously, Wells Fargo initiated covering ZYME stock with an “Outperform” rating, while Barclays Capital initiated covering the Zymeworks stock with “Overweight” rating. On the whole, Zymeworks stock has upside potential considering analysts ratings and its successful phase 1 study.
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