Citigroup Raises Zymeworks Price Target to $37 After Theravance Acquisition

Key Facts

1Citigroup reiterated its 'Buy' rating on Zymeworks and raised the price target to $37 from $35.

2Zymeworks is set to acquire Theravance Biopharma in an all-cash transaction valued at approximately $929 million.

3The acquisition adds the COPD treatment YUPELRI, which is projected to generate approximately $60 million in annualized cash flow.

Amid ongoing M&A activity in the biotech sector, Citigroup reiterated its 'Buy' rating on Zymeworks (ZYME) and raised its price target to $37 from $35, according to reports. The move follows Zymeworks' announcement to acquire Theravance Biopharma (TBPH) in an all-cash transaction valued at approximately $929 million. Citigroup highlighted that the acquisition adds the COPD treatment YUPELRI, which is projected to generate approximately $60 million in annualized cash flow.

Per market data, Zymeworks shares closed at $24.10 on June 29, 2026, while Theravance closed at $17.06 the same day. The new price target implies roughly 53% upside from Zymeworks' last close, reflecting the positive outlook on the deal. The transaction is supported by a unique financing structure including a $350 million non-recourse note and a potential future $100 million milestone payment, which eases the financial burden on Zymeworks.

Investors are now focused on the closing of the deal and expected regulatory approvals. The price target of $37 suggests significant upside from the prior close of $24.10. The coming period may also see attention on cash flow developments from YUPELRI, a key value driver post-merger.