Jim Cramer has a list of stocks he loves to scream about like a malfunctioning fire alarm… Tesla, Nvidia, Apple, Palantir. You know, the big boys. Then there’s Zymeworks, a biotech stock you won’t hear him yelling about. And honestly, if you own Zymeworks, that might be the best news you’ve heard all year (because the second Cramer starts foaming at the mouth over something, it’s usually time to run for the exits).

Zymeworks was one of those COVID-era biotech stocks that went parabolic. In 2017, shares were hanging out at $7. Then by 2021…  boom… $56. A 700% gain in just four years. Not bad. Well, as any veteran investor (or anyone who’s been burned by a hype stock) will tell you, gravity always wins. That brings us to today, and Zymeworks has been strapped to the back of the struggle bus, down 16% in the past year.

And forget the bad price action… analysts have been treating it like a disease in their write ups, calling it overvalued thanks to its ridiculous price-to-sales ratio of 14.8x. For reference, the biotech industry average is around 9.8x, and some companies are chilling at under 3x. So yeah, enough said.

But while analysts are busy writing Zymeworks’ obituary, one of its biggest minority owners, EcoR1 (holding 10%), just spent $5.8 million on the stock. Which is why we’re here talking about it right now.

With that in mind, let’s put on our rose colored glasses. If you do the research, Zymeworks isn’t your average sketchy penny stock gasping for air. The company is actually doing real biotech things, particularly in antibody-based cancer treatments. Their star drug, zanidatamab, is showing serious promise in clinical trials for HER2-positive tumors… a space where Big Pharma loves to dump truckloads of cash.

On top of that, they’ve locked in partnerships with some of the biggest names in the game (Jazz Pharmaceuticals, BeiGene, Merck, and GSK) all of whom are betting on Zymeworks’ next-gen antibody treatments. Most recently, Zymeworks even secured a $14 million milestone payment from GSK, which pads their cash reserves without the usual let’s-dilute-our-shareholders-into-oblivion move that small biotech firms love.

Financially speaking, things aren’t completely terrible. Revenue projections are up, with analysts expecting $95 million in 2025… a 25% jump from the past year. Is that great? Probably not. The biotech industry’s expected annual growth rate is 130%, so by comparison, Zymeworks is the slow kid in the relay race, but hey, at least they’re moving forward.

Now, let’s talk about the not-so-great parts. Zymeworks’ revenue decreased by 87% last year (yes, eighty-seven percent). Sure, they’ve bounced back 177% over the past three years, but analysts aren’t convinced the company can keep up the pace. Right now, the market sees ZYME more like a crypto memecoin than a serious business. Oh, and about that whole profitability thing? Yeah, still MIA. EPS is projected at -$1.55 for 2025, which is horrible (to say the least). That’s probably why some analysts have lowered their price target to $19.72 

So, what’s the verdict? In my opinion, Zymeworks is the stock market’s version of a promising first date. Think about it… it’s got the credentials, the big-name connections, and the potential for something serious. But dig a little deeper, and you realize it's also got some $1 million in debt, a history of cheating, and no job.

The fact that a major investor just threw down $5.8 million suggests there’s something worth paying attention to. Maybe they see a blockbuster drug in the making, but I personally wouldn’t touch this one with a 10 foot pole.

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Stock.News has positions in Tesla, Apple, and Merck.