Zymeworks Inc. Wells Fargo 21st Annual Healthcare Conference

Goodness. Yes, it has been a really busy time period for us. We just lived through an FDA approval for zanidatamab to be expanded in the U.S. to first-line GEA. It is amazingly exciting event, four and a half years in the making as a clinical study. But zanidatamab is now clearly the standard of care for HER2 positive patients with GEA, which is a pretty sizable population. Our commercial partner in the U.S., Jazz, got excited about that, so they have increased the peak sales potential that they see from Zani for that indication and the others to come to about $3 billion-$5 billion per year annual peak sales.

Pretty exciting to finally see us get to the point where the promise we saw in Zani a number of years ago, where we always thought it could be a meaningful medicine and deliver $5 billion in peak sales, means it's helping a lot of patients around the world, and we're really starting to see that happen right now, which is great. We've been spending our most recent time then about figuring out what do we do with that, and how do we build a real business around that's sustainable, durable, has positive cash flows. We grow those cash flows in a responsible way and build a more valuable company from that base that we have.

Yeah, that's great. I know we've tried to start to describe our business because it is a little bit untraditional as an- Right R&D biotech, where we find ourselves.

We think it is a really great opportunity we have in front of us to build the type of company that we think is really meaningful. I know there are different pillars, but it all supports the same foundation. I think we are just trying to build a really exciting business, but has phenomenal risk-adjusted durable cash flows as far in the future as we can see.

That is what we are trying to build, and we build that in multiple ways, but they all work together in the same thing. Obviously, our royalty interests are really valuable. If you look at what we have from zanidatamab and our royalties from Jazz Pharmaceuticals and BeiGene, if you look at our potential future royalties, if pasritamig is successful in phase III next year and gets to market with J&J, those are tremendously valuable assets, and I have them inside the company. The best thing I can do is find a way to protect and let those grow to the benefit of our own shareholders. There are some amazing risk-adjusted returns that can be generated from our partners driving revenue and driving our royalty share. That is exciting. We can think about using acquisitions to change the shape and nature of our business.

We did that recently this year with the announced acquisition of Theravance, which is still expected to close this year. It just gives us a chance to change the shape of the organization a different way. It can also be the source of some outsized returns if we are able to find the right company, find the right price, and also finance those efficiently, which I think we showed we could do with our financing partner, OMERS, who helped us with that. Finally, R&D is the lifeblood of what we do. Zanidatamab started as a scientific idea inside our company more than 10 years ago from a scientist who is still there trying to find the next one. That is really exciting. It can be the source of some amazingly outsized returns from innovation we make inside the company.

It can also be the source of strategic optionality, the way we think about all these different parts of the business go together. It will always be a part of what we do, but I think the business for us now has moved on to be something more than that. We are trying to spend some time describing what those different elements are, but they all work together to build what is hopefully a really interesting long-term proposition, as we said, but just focuses really on risk-adjusted, growing and durable cash flows in the future, regardless of the source they come from.