ZYMEWORKS CORPORATE OVERVIEW
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1 ZYMEWORKS CORPORATE OVERVIEW
2 Legal Disclaimer This presentation includes forward-looking statements within the meaning of U.S. Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws, or collectively, forward looking statements. Forward-looking statements include statements that may relate to our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs and other information that is not historical information. Forward-looking statements can often be identified by the use of terminology such as subject to, believe, anticipate, plan, expect, intend, estimate, project, may, will, should, would, could, can, the negatives thereof, variations thereon and similar expressions, or by discussions of strategy. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking statements, including, without limitation, our examination of historical operating trends, are based upon our current expectations and various assumptions. We may not realize our expectations, and our beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements as a result of risks and uncertainties, including those described in the "Risk Factors" and other sections of our public filings with the Securities and Exchange Commission and Canadian securities regulators. These forward-looking statements are made only as of the date hereof, and Zymeworks Inc. undertakes no obligation to update or revise the forward looking statements, whether as a result of new information, future events or otherwise, except as required by law. PAGE 2
3 Leading the Next Wave of Biotech Breakthroughs Corporate Extensive corporate assets Platforms Pipeline Partnerships Building a sustainable global business Platform licenses represent a source of non-dilutive capital Therapeutic Platforms Synergistic platforms to deliver multifunctional therapeutics Elegantly tailored solutions for complex biological challenges Validated by deals with 6 global pharma partners Comprehensive patent protection Pipeline Programs Proprietary lead program in clinic Anti-tumor activity in heavily pretreated gastric, breast and other HER2-expressing cancers Deep and diverse wholly owned preclinical pipeline Second drug candidate poised to enter clinic PAGE 3
4 Industry-Leading Therapeutic Platforms Bispecific Antibodies 6 Active Partners PAGE 4 Next-Gen Drug Conjugates Immune Function Modulation Multivalent AntibodyAlternatives
5 Synergistic Therapeutic Platforms Engineering fit-for-purpose biotherapeutics to maximize effect Azymetric Bispecifics ZymeLink AlbuCORE Bispecific Fab Hybrid Alternate Drug Antibody- Formats Formats Formats Conjugates Alternatives EFECT Immune Modulation PAGE 5
6 Fully-Integrated Drug Development Engine Inhibition of Multiple Pathways Potent ADC Payloads Target Discovery, Selection and Antibody Generation Dual- Targeting of Receptors Complementary Therapeutic Platforms Azymetric EFECT ZymeLink AlbuCORE Biparatopic- Enhanced Payload Delivery Highly- Customized Fit-for-Purpose Therapeutics Finely-Tuned Immune Cell Engagement Antibody- Alternative Biologics Optimized PK Multivalent Targeting PAGE 6
7 Product Candidates and Discovery Programs Programs LEAD PRODUCT CANDIDATES Enabling Platform(s) Indication(s) DISCOVERY PRECLINICAL PHASE 1 PHASE 2 WORLDWIDE COMMERCIAL RIGHTS ZW25 HER2 x HER2 Bispecific ZW49 HER2 x HER2 Bispecific ADC Azymetric Azymetric ZymeLink Breast, Gastric, & Other HER2-Expressing Cancers HER2-Expressing Cancers PRECLINICAL AND ADVANCED DISCOVERY PROGRAMS Bispecific ADCs T Cell Engaging Bispecifics Checkpoint Modulating Bispecifics PARTNERSHIPS * Azymetric, EFECT ZymeLink Azymetric EFECT Azymetric EFECT Solid Tumors Solid Tumors Solid Tumors Bispecific Azymetric Immuno-Oncology Bispecific Azymetric, EFECT Not Disclosed Bispecific Azymetric Not Disclosed Bispecific Azymetric, EFECT Not Disclosed Bispecific Azymetric, EFECT Immuno-Oncology Bispecific Azymetric, EFECT Not Disclosed *Stage of most advanced publicly disclosed program PAGE 7
8 Flexible Platforms to Drive Broader Therapeutic Applications Future Autoimmune Today Broader Oncology Inflammation Broader Oncology Underserved Oncology ZW25 & ZW49 Underserved Oncology Multiple Active Discovery Programs Underserved Oncology Future Discovery Programs Azymetric ZymeLink Azymetric ZymeLink EFECT AlbuCORE Azymetric ZymeLink EFECT AlbuCORE New Platforms PAGE 8
9 Key Value Drivers 2017/2018 Highlights ü Lilly, Daiichi Sankyo, Merck announced progress of their Azymetric programs ü ZW25: Dose escalation completed; Presented safety and anti-tumor activity data at ASCO, ESMO, SABCS ü Janssen Azymetric Partnership: ZW received US$50M upfront payment, up to US$1.45B deal value ü ZW49: Nominated as clinical candidate; Biparatopic ADC built on Azymetric and ZymeLink platforms ü Celgene Expanded Azymetric Partnership: Total deal value now up to US$1.65B ü Daiichi Partnership: Two Azymetric Licenses; ZW receives US$18M upfront, up to US$485M deal value ü ZW25: Selected for Oral Presentation at ASCO; Expanded clinical sites in US and Canada; 50 patients enrolled Remaining 2018 Milestones q ZW25: Complete single agent enrollment and report additional data from adaptive Phase 1 clinical study q ZW25: Refine the regulatory strategy and accelerate development q ZW49: File an Investigational New Drug (IND) application q Present preclinical data showcasing maturing pipeline and evolving therapeutic platforms q Establish new strategic drug development partnerships PAGE 9
10 ZW25 Bispecific for HER2-Expressing Cancers HER2 HER2 Unique Mechanisms of Action Biparatopic - targets two distinct HER2 epitopes Increased tumor cell binding Potent effector-mediated cytotoxicity Blocks ligand-dependent and -independent tumor growth Enhanced HER2 internalization and down-regulation Clinical Data Highlights Clinical benefit 1 of single agent ZW25 observed in heavily pretreated breast and gastric cancer patients Target lesions decrease in majority of patients 2 Best response in response-evaluable patients: 12 Partial Response; 6 Stable Disease; 15 PD 2018 Catalysts Report additional data from Monotherapy and Combination Cohort Expansion phases Complete single agent enrollment Refine regulatory strategy and accelerate development 1 Confirmed partial response or stable disease 6 months 2 21/31 patients with measurable disease per RECIST 1.1 criteria and at least one tumor re-staging PD; progressive disease PAGE 10
11 ZW25 Biparatopic HER2 Binding Drives Unique Mechanisms of Action ZW25 targets two distinct HER2 epitopes (biparatopic) leading to unique binding geometries Biparatopic Trans Binding Each HER2 receptor can be targeted by two ZW25 antibodies Monoclonal Binding Each HER2 receptor can only be bound by one monoclonal antibody Typical Monoclonal (Trastuzumab) Binding PAGE 11 ZW25 Biparatopic Trans Binding
12 ZW25 Biparatopic HER2 Binding Drives Unique Mechanisms of Action ZW25 s unique binding geometries promote: Extended chain formation and HER2 receptor clustering Enhanced HER2 internalization and downregulation Increased tumor cell binding density and potent effector function-mediated cytotoxicity Enhanced blockade of ligand-dependent and ligand-independent tumor growth Typical Monoclonal (Trastuzumab) Binding Trastuzumab PAGE 12 ZW25 Biparatopic Promotes Receptor Clustering ZW25
13 HER2 Classification for Gastric and Breast Cancer HER2 Status HER2 Assay Results HER2 High IHC 3+, IHC 2+ or FISH Positive HER2 Intermediate IHC 2+, FISH Equivocal or FISH Negative HER2 Low IHC 1+, FISH Equivocal or FISH Negative HER2 Negative IHC 0 or FISH Negative Gastric Cancer HER2 High 18% HER2 Int 5% HER2 Negative 58% HER2 Low 19% Estimated Annual Incidence (US, EU5, JP, SK & CH) Total HER2 Over-expressing Gastric Cancer 110,868 33, , , ,190 Breast Cancer 115, , , , ,754 Potential Markets for ZW25/ZW49 Expanding the Treatment Paradigm for HER2+ Cancer Breast Cancer HER2 High 15% HER2 Negative 19% HER2 Intermediate 26% HER2 Low 40% PAGE 13
14 ZW25 Adaptive Clinical Trial Design Weekly and every two week dosing regimens evaluated Recommended dose and schedule: 10 mg/kg weekly or 20 mg/kg every two weeks 3+3 Dose Escalation (n=22) RD Expansion Cohorts (n=20) 1 Weekly ZW25 IV Days 1, 8, 15, and 22 of 28 day cycle 5 mg/kg IV QW (n=3) 10 mg/kg IV QW (n=6) No DLTs HER2 High breast cancer (n=9) HER2 High and Intermediate Gastroesophageal (n=5) Every 2 Weeks 15 mg/kg IV QW (n=7) HER2 High other cancers (n=6) ZW25 IV Days 1 and 15 of 28 day cycle 20 mg/kg IV Q2W (n=6) 1 Enrollment ongoing. Data cut-off date of 18 April 2018 PAGE 14
15 ZW25 Single Agent Anti-Tumor Activity in HER2-Expressing Cancer Patients Target Lesions Decrease in Majority of Patients with Measurable Disease 1 % Change in SLD at Best Response Breast Gastroesophageal Colorectal Cervical Salivary gland Gallbladder SLD = sum of longest diameters Data cut-off date of 18 April /42 patients not evaluable for change in SLD: too early (n=3); no target lesions (n=4); CNS progression on Day 14 (n=1); clinical progression on Day 21 (n=1); withdrawal of consent (n=1); unrelated SAE (n=1). PAGE 15
16 Best RECIST 1.1 Response to Single Agent ZW25 Response- Evaluable Patients 1 Disease Control Rate Partial Response Stable Disease Progressive Disease Total (n=42) (55%) 12 (36%) 6 (18%) 15 (45%) Breast cancer (n=20) 18 9 (50%) 6 (33%) 3 (17%) 9 (50%) Gastroesophageal cancer (n=13) 9 5 (56%) 4 (44%) 1 (12%) 4 (44%) Other cancers (n=9) 6 4 (67%) 2 (33%) 2 (33%) 2 (33%) Colorectal (n=5) 3 2 (67%) 1 (33%) 1 (33%) 1 (33%) Other (n=4) 3 2 (67%) 1 (33%) 1 (33%) 1 (33%) DCR: Disease control rate = best response of stable disease or partial response at any time 1 Response evaluable = measurable disease per RECIST 1.1 and at least one tumor restaging or unequivocal clinical progression. Not evaluable n=9, including: too early (n=3); no target lesions (n=4); withdrawal of consent (n=1); unrelated SAE (n=1). Data cut-off date 18 April PAGE 16
17 Breast Cancer: Single Agent Anti-tumor Activity All 20 patients with history of HER2 High breast cancer, and median 5 prior HER2-targeted regimens for metastatic disease Prior trastuzumab (T) = 100%; T-DM1 (K) = 95%; pertuzumab (P) = 85%; lapatinib (L) = 50%; investigational agent (I) = 35% % Change in SLD at Best Response * # # # # 5 mg/kg QW 10 mg/kg QW 15 mg/kg QW 20 mg/kg Q2W * PD due to new CNS lesion # PD due to new lesion TPKI TKL TPKI TKL TPK 1 TP TPKLI TKL TPKL TPKI TPK TPKL TPK TPKLI TPK TPKl TPKL * 1 HER2 negative liver biopsy obtained at study entry; progressive disease in liver Data cut-off date of 18 April SLD = sum of longest diameters. 3/20 breast cancer patients not evaluable for change in SLD: no measurable disease (n=2); clinical progression on Day 21 (n=1). PAGE 17
18 Breast Cancer: Time on Treatment Breast Cancer Patients (n=20) TPKL TPK TPKI TPKL TPK TPKL TPKLI TPKI TPK TPKLI TPKI TP TLK TPK TLK TPKL TPKI TLK TPKLI TPK Non-CR/non-PD SD SD PR PR PR PR PR SD SD # # # # * HER2 Neg * PR # 5 mg/kg QW 10 mg/kg QW 15 mg/kg QW 20 mg/kg Q2W Active Patients PD due to CNS lesion # PD due to new lesion * Off study due to reasons other than AE/PD days = 2 cycles Days on Treatment T = trastuzumab; P = pertuzumab; K = T-DM1; L = lapatinib; I = investigational Data cut-off date of 18 April PAGE 18
19 Gastric Cancer: Single Agent Anti-tumor Activity Median 4 prior systemic regimens, including prior trastuzumab in all patients % Change in SLD at Best Response * # HER2 Status HIGH HIGH * HIGH HIGH INT HIGH HIGH HIGH 5 mg/kg QW 10 mg/kg QW 15 mg/kg QW 20 mg/kg Q2W # PD due to new lesion * IHC1+/FISH+ HER2 High: IHC 3+ or 2+/FISH+; HER2 Intermediate: IHC 2+/FISH-; HER2 Low: IHC 1+/FISH-; HER2 Negative: IHC 0/FISH- Data cut-off date of 18 April /13 patients GEA patients not evaluable for change in SLD: too early (n=1); no measurable disease (n=1); CNS PD Day 14 due to brain metastases (n=1); unrelated SAE (n=1); and withdrawal of consent (n=1). PAGE 19
20 Gastroesophageal Cancer: Time on Treatment HER2 Status 1 HIGH SD Gastroesophageal Cancer Patients (n=13) HIGH HIGH HIGH HIGH INT LOW HIGH* HIGH LOW HIGH PR PR PR PD PR # * # 5 mg/kg QW 10 mg/kg QW 15 mg/kg QW 20 mg/kg Q2W Active Patients PD due to CNS lesion # PD due to new lesion * IHC1+/FISH+ Withdrew Consent Unrelated AE HIGH LOW Days on Treatment 56 days = 2 cycles 1 Discordance between local and central assessments; HER2 High status not confirmed in 5/9 patients with biopsies available for central review. HER2 High: IHC 3+ or 2+/FISH+; HER2 Intermediate: IHC 2+/FISH-; HER2 Low: IHC 1+/FISH- Data cut-off date of 18 April PAGE 20
21 Other HER2 High Cancers: Single Agent Anti-tumor Activity All patients with history of HER2 High cancer Median 4 prior systemic regimens % Change in SLD at Time of Best Response # 10 mg/kg QW 15 mg/kg QW 20 mg/kg Q2W # PD due to new lesion Colorectal Cervical Colorectal Salivary Colorectal Gallbladder HER2 heterogeneous (HER2 High/Negative by central review) Colorectal Colorectal TP Salivary Gallbladder T Colorectal TP Cervical T Adnexal TPK Colorectal Colorectal TKLI SD SD SD PR # # PR Active Patients Days on Treatment T = trastuzumab; P = pertuzumab; K = T-DM1; L = lapatinib; I = investigational agent 3/9 patients not evaluable for change in SLD: too early (n=2); no measurable disease (n=1). Data cut-off date of 18 April PAGE 21
22 ZW25 Data Highlights and Timeline Actively Recruiting for Parts 2 and 3: Single Agent and Combination Cohort Expansions Gastric Cancer Median 4 prior systemic regimens Disease control rate (best response of PR or SD) 56% (5/9 response evaluable): 4 PR, 1 SD, 4 PD Breast Cancer Median 6 prior systemic regimens Disease control rate: 50% (9/18 response evaluable): 6 PR, 3 SD, 9 PD 4 patients with PD due to CNS disease had systemic disease control (SD or PR) at time of progression Other Cancers Disease control rate: 67% (4/6 response evaluable): 2 PR, 2 SD, 2 PD Phase 1 Dose Escalation 5;10;15 mg/kg weekly 20 mg/kg bi-weekly Top- Line Data ASCO 2017 ESMO 2017 SABCS 2017 ASCO 2018 Single Agent Cohort Expansion Combination Tx Cohort Expansion Safety ZW25 was well-tolerated at all doses and schedules, with the most common adverse events being diarrhea, infusion reactions, or nausea, all Grade 1 or 2 in severity Data cut-off date of 18 April PAGE 22
23 Management Team Ali Tehrani, Ph.D. President & Chief Executive Officer Diana Hausman, M.D. Chief Medical Officer Neil Klompas, CPA, CA Chief Financial Officer John Babcook SVP, Discovery Research Surjit Dixit, Ph.D. VP, Technology Wajida Leclerc VP, Human Resources Founded Zymeworks in Current Board member of LifeSciences BC, Creatus Biosciences Inc., CQDM and a member of the BC Premier s Tech Council. Past member of the MITACS and BIOTECanada Advisory Boards and Committees. PhD (Microbiology & Immunology) from UBC, MSc (Biochemistry) from UMass Over fifteen years of clinical drug development experience. Former CMO at Oncothyreon and previously at ZymoGenetics, Berlex and Immunex. Internal medicine and specialty training at U of WA, MD from University of Pennsylvania and AB (Biology) from Princeton Chartered Professional Accountant with over 20 years of healthcare and biotech experience. Formerly with KPMG s U.S. Biotech/Pharma M&A Transaction Advisory Group and Canadian Life Sciences practices Former President and CSO of Kairos Therapeutics, with over 20 years of biologics research. Co-founder of ImmGenics Pharmaceuticals and he has participated in the development of more than 100 therapeutic antibody-based programs Former coordinator for Computational Molecular Biophysics, Wesleyan University. PhD and MSc (Chemistry) from Indian Institute of Technology (New Delhi). He leads the implementation and advancement of our proprietary ZymeCAD approach Prior to Zymeworks, Ms. Leclerc was the Senior Director, Human Resources at QLT Inc. and Xenon Pharmaceuticals. BA (Liberal Arts and Business) from SFU Jennifer Kaufman-Shaw, Ph.D., LLB VP, Intellectual Property Over 20 years in global intellectual property strategy and management. Formerly part of the senior management teams at QLT Inc. and Sirius Genomics and co-founder of ImStar Therapeutics. PhD and LLB from U of A. PAGE 23
24 Board of Directors Nick Bedford Chairman Kenneth J. Hillan, M.B., Ch.B. Hollings Renton, MBA Natalie Sacks, M.D. Ali Tehrani, Ph.D. Lota S. Zoth, CPA Independent consultant. Former Chairman of the Board of ActiveState Corp. and Head of German Equities at UBS President, R&D of Achaogen; previously Chief Executive Officer and a member of its Board of Directors since October 2011 Independent consultant. Former Chairman, CEO and President of Onyx Pharmaceuticals, and current member of the board of directors of AnaptysBio and Portola Pharmaceuticals Chief Medical Officer of Aduro Biotech and previously VP of Clinical Development at Onyx Pharmaceuticals Founded Zymeworks in Current Board member of LifeSciences BC, Creatus Biosciences Inc., CQDM and a member of the BC Premier s Tech Council. Past member of the MITACS and BIOTECanada Advisory Boards and Committees. PhD (Microbiology & Immunology) from UBC, MSc (Biochemistry) from Umass Independent consultant. Former Chief Financial Officer of MedImmune, Inc. PAGE 24
25 Key Value Drivers 2017/2018 Highlights ü Lilly filed an IND, Daiichi Sankyo, Merck announced progress of their Azymetric programs ü ZW25: Dose escalation completed; Presented safety and anti-tumor activity data at ASCO, ESMO, SABCS ü Janssen Azymetric Partnership: ZW received US$50M upfront payment, up to US$1.45B deal value ü ZW49: Nominated as clinical candidate; Biparatopic ADC built on Azymetric and ZymeLink platforms ü Celgene Expanded Azymetric Partnership: Total deal value now up to US$1.65B ü Daiichi Partnership: Two Azymetric Licenses; ZW receives US$18M upfront, up to US$485M deal value ü ZW25: Selected for Oral Presentation at ASCO; Expanded clinical sites in US and Canada; 50 patients enrolled Remaining 2018 Milestones q ZW25: Complete single agent enrollment and report additional data from adaptive Phase 1 clinical study q ZW25: Refine the regulatory strategy and accelerate development q ZW49: File an Investigational New Drug (IND) application q Present preclinical data showcasing maturing pipeline and evolving therapeutic platforms q Establish new strategic drug development partnerships PAGE 25
26 ZYMEWORKS CORPORATE OVERVIEW
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