Royalty Pharma plc announced a $250 million non‑recourse financing to Zymeworks Inc., secured by 30 % of worldwide tiered royalties on Zymeworks’ HER2‑positive bispecific antibody Ziihera (zanidatamab‑hrii). The note is repayable from the royalty stream generated by Ziihera’s global sales under the collaboration agreements with Jazz Pharmaceuticals and BeOne Medicines.
The repayment schedule requires Royalty Pharma to receive cumulative payments equal to 1.65 × the note amount by December 31 2033, or 1.925 × the note amount at any time thereafter. Royalty tiers range from 10 % to high teens for Jazz Pharmaceuticals up to $2.0 billion in sales, and 20 % on sales above that threshold; BeOne Medicines applies mid‑single‑ to mid‑double‑digit rates up to $1.0 billion and 19.5 % above that level.
Ziihera is approved in the United States for previously treated, unresectable or metastatic HER2‑positive biliary tract cancer and has shown positive Phase 3 results in first‑line HER2‑positive gastroesophageal adenocarcinoma. The collaboration agreements with Jazz and BeOne provide the royalty stream that backs the note and give Royalty Pharma exposure to a therapy with significant commercial potential.
Royalty Pharma’s Q4 2025 results, released on February 11 2026, showed portfolio receipts of $874 million, an 18 % year‑over‑year increase, and full‑year 2025 receipts of $3.254 billion, up 16 % from 2024. The new financing expands the company’s synthetic royalty portfolio, which totaled $925 million in 2024, and reinforces its strategy of funding promising assets without taking on R&D or commercialization risk.
Zymeworks reported total revenue of $106.0 million for 2025, a 39 % increase over 2024, and a net loss of $81.1 million, down 34 % from the prior year. The company’s new share repurchase program, authorized in November 2025 for up to $125 million, had drawn $62.5 million by March 2 2026, underscoring the importance of the non‑dilutive capital for both shareholder returns and strategic initiatives.
The transaction aligns with Royalty Pharma’s growth strategy of acquiring royalty interests in high‑potential therapies while providing Zymeworks with immediate, non‑dilutive capital to support its shift toward a royalty‑driven business model, strengthen its balance sheet, and fund future acquisitions and share repurchases.
Kenneth Galbraith, Zymeworks CEO, said the financing “provides non‑dilutive capital that enhances our flexibility to continue repurchasing shares at current prices, while giving us additional capacity to pursue strategic acquisitions and fund our cash runway beyond 2028.” Pablo Legorreta, Royalty Pharma CEO, noted the deal “enables us to participate in the long‑term value of Ziihera while providing Zymeworks capital to achieve their strategic and financial goals.”
Analysts responded positively: Stifel raised its price target for Zymeworks to $47 from $40, Jefferies maintained a Buy rating with a $42 target, and Citizens kept a Market Outperform rating with a $32 target. For Royalty Pharma, BofA Securities reiterated a Buy rating with a $54 target, and TD Cowen raised its target to $50, reflecting confidence in the company’s robust portfolio and the strategic fit of the new financing.
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