Zymeworks' Stock Falls Following Restructuring Plan That Calls for Deep Job Cuts
Zymeworks Inc. slid nearly 10%, to $12.17, a day after disclosing a restructuring that targets cutting at least 25% of jobs by year's end.
The restructuring, days into Kenneth Galbraith's term as chief executive, amounts to a reset of the company's strategy to focus on its product candidate, zanidatamab (formerly known as ZW25), and its second product candidate, ZW49.
As part of the restructuring, half of the company's senior management team have left or are leaving, including Scientific Chief Anthony Polverino, who played a key role in setting and driving Zymeworks' R&D strategy; Commercial Chief James Priour; and People Chief Kathryn O'Driscoll.
"A smaller, more focused workforce is essential for us to improve our operating performance and accomplish our key priorities in a more cost-efficient manner," Mr. Galbraith said.
The Canadian clinical-stage biopharmaceutical company said it ended 2021 with about $250 million in cash and short-term investments, which it said should be enough to cover its operations through at least late 2022. Zymeworks is slated to report fourth-quarter results in late February.
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Expected Major Events for Friday
00:01/UK: Jan UK Consumer Confidence Survey
05:00/JPN: Dec Steel Production
07:00/UK: Dec UK monthly retail sales figures
13:30/CAN: Dec New Housing Price Index
13:30/CAN: Nov Retail trade
13:30/US: U.S. Weekly Export Sales
15:00/US: Dec Leading Indicators
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Expected Earnings for Friday
Ally Financial Inc (ALLY) is expected to report $1.95 for 4Q.
Ames National (ATLO) is expected to report for 4Q.
Bank of the James Financial Group Inc (BOTJ) is expected to report for 4Q.
Bridgford Foods Corp (BRID) is expected to report for 4Q.
Chemung Financial (CHMG) is expected to report $1.26 for 4Q.
Chino Commercial Bancorp (CCBC) is expected to report for 4Q.
Colony Bankcorp (CBAN) is expected to report $0.41 for 4Q.
FIGS Inc (FIGS) is expected to report for 4Q.
First Hawaiian Inc (FHB) is expected to report $0.47 for 4Q.
Flywire Corp (FLYW) is expected to report for 4Q.
Greene County Bancorp (GCBC) is expected to report for 2Q.
Huntington Bancshares (HBAN) is expected to report $0.30 for 4Q.
MetroCity Bankshares Inc (MCBS) is expected to report $0.66 for 4Q.
Paymentus Holdings Inc (PAY) is expected to report for 4Q.
Prudential Bancorp Inc (PBIP) is expected to report $0.22 for 1Q.
Schlumberger (SLB) is expected to report $0.39 for 4Q.
Toast Inc (TOST) is expected to report for 4Q.
Unity Bancorp Inc (UNTY) is expected to report $0.86 for 4Q.
Wayne Savings Bancshares Inc (WAYN) is expected to report for 4Q.
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ANALYST RATINGS ACTIONS
Advanced Micro Devices Cut to Neutral From Overweight by Piper Sandler
Ameresco Raised to Outperform From Market Perform by Raymond James
American Assets Trust Cut to Neutral From Buy by Mizuho
Ashland Global Holdings Cut to Equal-Weight From Overweight by Wells Fargo
Ball Corp Cut to Equal-Weight From Overweight by Morgan Stanley
Burlington Stores Cut to Sell From Hold by Loop Capital
Calithera Biosciences Raised to Outperform From Market Perform by SVB Leerink
Carvana Cut to Sector Weight From Overweight by Keybanc
CME Group Raised to Neutral From Sell by Rosenblatt
Consolidated Edison Cut to Sell From Neutral by Guggenheim
EOG Resources Price Target Raised to $110.00/Share From $108.00 by Keybanc
Essential Props Realty Cut to Neutral From Buy by B of A Securities
Essential Props Realty Cut to Neutral From Buy by Mizuho
Etsy Raised to Overweight From Sector Weight by Keybanc
Evolus Raised to Buy From Hold by Truist Securities
Evoqua Water Technologies Raised to Outperform From Perform by Oppenheimer
First Community (SC) Cut to Market Perform From Outperform by Raymond James
Ford Motor Cut to Hold From Buy by Jefferies
Getty Realty Cut to Underperform From Neutral by B of A Securities
Hawaiian Electric Raised to Neutral From Sell by Guggenheim
Holly Energy Partners Cut to Underweight From Equal-Weight by Barclays
Hudson Pacific Properties Cut to Underperform From Neutral by Mizuho
International Paper Cut to Neutral From Buy by B of A Securities
Kilroy Realty Raised to Buy From Neutral by Mizuho
Magellan Midstream Cut to Equal-Weight From Overweight by Barclays
Northwest Natural Raised to Neutral From Sell by Guggenheim
Paramount Group Raised to Buy From Neutral by Mizuho
PetMed Express Raised to Buy From Neutral by Sidoti & Co.
Safehold Cut to Neutral From Buy by Mizuho
Sealed Air Raised to Overweight From Equal-Weight by Morgan Stanley
Shell Midstream Partners Cut to Equal-Weight From Overweight by Barclays
Silvergate Capital Raised to Buy From Neutral by Goldman Sachs
South Jersey Industries Cut to Neutral From Buy by Guggenheim
Spire Inc Cut to Neutral From Buy by Guggenheim
Tenet Healthcare Raised to Strong Buy From Outperform by Raymond James
UiPath Raised to Outperform From Perform by Oppenheimer
United Parcel Service Raised to Neutral From Underperform by Exane BNP Paribas
US Bancorp Cut to Market Perform From Outperform by Keefe, Bruyette & Woods
Ventas Raised to Buy From Neutral by Mizuho
Vertex Pharmaceuticals Raised to Outperform From Market Perform by BMO Capital
VF Corp Cut to Hold From Buy by Williams Capital
Vroom Raised to Overweight From Sector Weight by Keybanc
W. P. Carey Raised to Neutral From Underperform by B of A Securities
Walmart Cut to Sector Weight From Overweight by Keybanc
Welltower Raised to Buy From Neutral by Mizuho
WestRock Cut to Neutral From Buy by B of A Securities
World Fuel Services Raised to Buy From Underperform by B of A Securities
WW International Cut to Underweight From Sector Weight by Keybanc
Zynga Cut to Neutral From Buy by BTIG
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
01-21-22 0615ET
