0001937653-23-000018 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	May 03, 2023
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-41535
Entity Registrant Name	ZYMEWORKS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	88-3099146
Entity Address, Address Line One	108 Patriot Drive, Suite A
Entity Address, City or Town	Middletown
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19709
City Area Code	302
Local Phone Number	274-8744
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		64,171,282
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001937653
Current Fiscal Year End Date	--12-31
Common stock
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, $0.00001 par value per share
Trading Symbol	ZYME
Security Exchange Name	NASDAQ
Preferred Stock Purchase Rights
Entity Listings [Line Items]
Title of 12(b) Security	Preferred Stock Purchase Rights
Security Exchange Name	NASDAQ
No Trading Symbol Flag	true

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 181,583	$ 400,912
Short-term investments (note 5)	159,208	91,320
Accounts receivable	66,916	33,400
Prepaid expenses and other current assets	18,665	19,074
Total current assets	426,372	544,706
Deferred financing fees	73	10
Long-term investments (note 5)	72,474	886
Long-term prepaid assets	16,886	15,729
Deferred tax asset	1,405	1,345
Property and equipment, net	23,514	24,713
Operating lease right-of-use assets	22,300	22,937
Intangible assets, net	8,075	8,755
Acquired in-process research and development (note 6)	17,628	17,628
Goodwill (note 6)	12,016	12,016
Total assets	600,743	648,725
Current liabilities:
Accounts payable and accrued liabilities (note 7)	59,250	87,468
Income tax payable	840	840
Fair value of liability classified stock options	1,504	1,642
Current portion of operating lease liability (note 11)	3,372	3,322
Deferred revenue (note 9)	2,353	2,353
Total current liabilities	67,319	95,625
Long-term portion of operating lease liability (note 11)	23,847	24,667
Deferred revenue (note 9)	30,588	30,588
Other long-term liabilities (note 7)	3,595	3,101
Deferred tax liability	1,856	1,788
Total liabilities	127,205	155,769
Stockholders’ equity:
Common stock, $0.00001 par value; 900,000,000 authorized shares at March 31, 2023 and December 31, 2022, respectively; 64,083,770 and 63,059,501 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively (note 8)	900,490	886,322
Preferred shares, $0.00001 par value; 100,000,000 authorized shares of preferred stock, out of which, one share of preferred stock is a share of Special Voting Preferred Stock and outstanding as of March 31, 2023 and December 31, 2022 (note 8b).	0	0
Exchangeable shares, no par value, 656,888 and 1,424,533 issued and outstanding shares at March 31, 2023 and December 31, 2022, respectively (note 8b)	9,426	20,442
Additional paid-in capital	152,677	151,614
Accumulated other comprehensive loss	(5,939)	(6,659)
Accumulated deficit	(583,116)	(558,763)
Total stockholders’ equity	473,538	492,956
Total liabilities and stockholders’ equity	600,743	648,725
Commitments and contingencies (note 13)

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value per share (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common shares issued (in shares)	64,083,770	63,059,501
Common shares outstanding (in shares)	64,083,770	63,059,501
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	1	1
Preferred stock, shares outstanding (in shares)	1	1
Exchangeable stock, shares issued (in shares)	656,888	1,424,533
Exchangeable shares, shares outstanding (in shares)	656,888	1,424,533

Condensed Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue
Research and development collaborations (note 9)	$ 35,578	$ 1,916
Operating expenses:
Research and development	45,912	62,510
General and administrative	16,947	12,092
Total operating expenses	62,859	74,602
Loss from operations	(27,281)	(72,686)
Other income:
Interest income	4,805	302
Other expense, net (note 10)	(487)	(315)
Total other income (expense), net	4,318	(13)
Loss before income taxes	(22,963)	(72,699)
Income tax (expense) recovery	(1,390)	74
Net loss	(24,353)	(72,625)
Other comprehensive income:
Unrealized gain on available for sale securities, net of tax of nil (note 5)	720	0
Total other comprehensive income	720	0
Comprehensive loss	$ (23,633)	$ (72,625)
Net loss per common share (note 4):
Basic (in dollars per share)	$ (0.36)	$ (1.18)
Diluted (in dollars per share)	$ (0.37)	$ (1.19)
Weighted-average common stock outstanding (note 4):
Basic (in shares)	66,739,308	61,367,368
Diluted (in shares)	66,742,080	61,378,170

Condensed Consolidated Statements of Loss and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Unrealized gain on available for sale securities, tax	$ 0	$ 0

Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred stock	Exchangeable shares	Common stock	Accumulated deficit	Accumulated other comprehensive loss	Additional paid-in capital
Beginning balance (in shares) at Dec. 31, 2021		0	0	46,633,935
Beginning balance at Dec. 31, 2021	$ 249,094	$ 0	$ 0	$ 741,147	$ (683,104)	$ (6,659)	$ 197,710
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock on exercise of options (in shares)				2,112
Issuance of common stock on exercise of options	12			$ 20			(8)
Issuance of common stock through employee stock purchase plan (in shares)				61,801
Issuance of common stock through employee stock purchase plan	1,361			$ 1,361
Issuance of common stock upon vesting of restricted stock units (“RSUs”) (in shares)				37,398
Issuance of common stock upon vesting of restricted stock units (“RSUs”)	0			$ 1,382			(1,382)
Issuance of common stock and pre-funded warrants in connection with public offering, net of offering costs (notes 8a and 8d) (in shares)				11,035,000
Issuance of common stock and pre-funded warrants in connection with public offering, net of offering costs (notes 8a and 8c)	107,534			$ 82,549			24,985
Stock-based compensation expense (recovery)	(2,932)						(2,932)
Net loss	(72,625)				(72,625)
Ending balance (in shares) at Mar. 31, 2022		0	0	57,770,246
Ending balance at Mar. 31, 2022	282,444	$ 0	$ 0	$ 826,459	(755,729)	(6,659)	218,373
Beginning balance (in shares) at Dec. 31, 2022		1	1,424,533	63,059,501
Beginning balance at Dec. 31, 2022	492,956	$ 0	$ 20,442	$ 886,322	(558,763)	(6,659)	151,614
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock on exercise of options (in shares)				203,239
Issuance of common stock on exercise of options	1,648			$ 2,649			(1,001)
Issuance of common stock through employee stock purchase plan (in shares)				50,420
Issuance of common stock through employee stock purchase plan	371			$ 371
Issuance of common stock upon vesting of restricted stock units (“RSUs”) (in shares)				2,965
Issuance of common stock upon vesting of restricted stock units (“RSUs”)	0			$ 132			(132)
Issuance of common stock for retracted exchangeable shares (in shares)			(767,645)	(767,645)
Issuance of common stock for retracted exchangeable shares (note 8b)	0		$ (11,016)	$ 11,016
Issuance of common stock and pre-funded warrants in connection with public offering, net of offering costs (notes 8a and 8c)							2,196
Stock-based compensation expense (recovery)	2,196
Other comprehensive income (note 5)	720					720
Net loss	(24,353)				(24,353)
Ending balance (in shares) at Mar. 31, 2023		1	656,888	64,083,770
Ending balance at Mar. 31, 2023	$ 473,538	$ 0	$ 9,426	$ 900,490	$ (583,116)	$ (5,939)	$ 152,677

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (24,353)	$ (72,625)
Items not involving cash:
Depreciation of property and equipment	1,584	2,311
Amortization of intangible assets	679	155
Stock-based compensation expense (recovery)	2,325	(8,177)
Amortization of operating lease right-of-use assets	637	2,865
Deferred income tax expense	9	735
Change in fair value of contingent consideration liability	499	0
Unrealized foreign exchange (gain) loss	(298)	686
Changes in non-cash operating working capital:
Accounts receivable	(33,516)	11,325
Prepaid expenses and other current assets	(1,671)	(3,859)
Accounts payable and accrued liabilities	(28,266)	11,820
Operating lease liabilities	(820)	(648)
Net cash used in operating activities	(83,191)	(55,412)
Cash flows from financing activities:
Proceeds from public offering, net of issuance costs (notes 8a)	0	107,720
Issuance of common stock on exercise of stock options (note 8e)	1,516	12
Issuance of common stock through employee stock purchase plan	236	863
Deferred financing fees	0	19
Finance lease payments	(14)	(4)
Net cash provided by financing activities	1,738	108,610
Cash flows from investing activities:
Net (purchases)/redemptions of investments	(137,836)	25,278
Acquisition of property and equipment	(386)	(4,158)
Acquisition of intangible assets	0	(546)
Net cash (used in) provided by investing activities	(138,222)	20,574
Effect of exchange rate changes on cash and cash equivalents	346	(123)
Net change in cash and cash equivalents	(219,329)	73,649
Cash and cash equivalents, beginning of period	400,912	201,867
Cash and cash equivalents, end of period	181,583	275,516
Supplemental disclosure of non-cash investing and financing items:
Leased assets obtained in exchange for operating lease liabilities	0	72
Acquisition of property and equipment in accounts payable and accrued liabilities	$ 0	$ 1,590

Nature of Operations	3 Months Ended
Nature of Operations	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Nature of Operations Zymeworks Inc. together with its subsidiaries (collectively the “Company” or “Zymeworks”) is a clinical-stage biopharmaceutical company dedicated to the development of next-generation multifunctional biotherapeutics. Zymeworks BC Inc. (previously known as "Zymeworks Inc.") was incorporated on September 8, 2003 under the laws of the Canada Business Corporations Act. On October 22, 2003, the Company was registered as an extra-provincial company under the Company Act (British Columbia). On May 2, 2017, the Company continued under the Business Corporations Act (British Columbia). Since its inception, the Company has devoted substantially all of its resources to research and development activities, including developing its therapeutic platforms and identifying and developing potential product candidates by undertaking preclinical studies and clinical trials. The Company supports these activities through general and administrative support, as well as by raising capital, conducting business planning and protecting its intellectual property. On July 15, 2022, the Company announced its intention to become a Delaware corporation, subject to receipt of necessary shareholder, stock exchange, and court approvals (the "Redomicile Transactions"). The Redomicile Transactions were completed on October 13, 2022. On October 13, 2022, the Company changed its name to Zymeworks BC Inc. Unless the context otherwise requires or otherwise expressly states, all references in the accompanying consolidated financial statements to “Zymeworks,” the “Company,” “we,” “us” and “our” (i) for periods until completion of the Redomicile Transactions, refer to Zymeworks BC Inc. and its subsidiaries and (ii) for periods after completion of the Redomicile Transactions, refer to Zymeworks Inc. (formerly known as Zymeworks Delaware Inc.) and its subsidiaries. To effect the Redomicile Transactions, the Company conducted a share exchange, pursuant to which holders of the Company's common shares exchanged their common shares in the Company for shares of common stock of Zymeworks Inc. (formerly known as Zymeworks Delaware Inc.) or, at their election with respect to all or a portion of their common shares in the Company and subject to applicable eligibility criteria and an overall cap, exchangeable shares (the “Exchangeable Shares”) in the capital of a newly formed indirect subsidiary of Zymeworks Inc. A special meeting of Company security holders was held on October 7, 2022 to approve the Redomicile Transactions. The Redomicile Transactions were governed by a transaction agreement dated July 14, 2022, as restated and amended on August 18, 2022 (the “Restated and Amended Transaction Agreement”), by and among the Company and its direct or indirect subsidiaries Zymeworks Inc., Zymeworks CallCo ULC (“CallCo”) and Zymeworks ExchangeCo Ltd. (“ExchangeCo”), including a plan of arrangement included as Exhibit A to the Restated and Amended Transaction Agreement (the “Plan of Arrangement”).

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying interim condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the audited consolidated financial statements of the Company and the accompanying notes thereto for the year ended December 31, 2022. These unaudited interim condensed consolidated financial statements reflect all adjustments, consisting solely of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three months ended March 31, 2023 and 2022 are not necessarily indicative of results that can be expected for a full year. These unaudited interim condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2022. All amounts expressed in the interim condensed consolidated financial statements of the Company and the accompanying notes thereto are expressed in thousands of U.S. dollars, except for share and per share data and where otherwise indicated. References to “$” are to U.S. dollars and references to “C$” are to Canadian dollars. Use of Estimates The preparation of interim condensed consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and judgments in certain circumstances that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, most notably those related to revenue recognition including estimated timing of completion of performance obligations required to meet revenue recognition criteria, accrual of expenses including clinical and preclinical study expense accruals, stock-based compensation, valuation allowance for deferred taxes, benefits under the Scientific Research and Experimental Development (“SR&ED”) program, and other contingencies. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations and financial condition, including revenues, expenses, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are evolving and highly uncertain, such as the duration and severity of outbreaks, including potential future waves or cycles, and the effectiveness of actions taken to contain and treat COVID-19. The Company considered the potential impact of COVID-19 when making certain estimates and judgments relating to the preparation of these interim condensed consolidated financial statements. While there was no material impact to the Company’s interim condensed consolidated financial statements as of and for the three months ended March 31, 2023, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in a material impact to the Company’s consolidated financial statements in future reporting periods.

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2023
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent accounting pronouncements not yet adopted The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the business, or that no material effect is expected on the consolidated financial statements as a result of future adoption.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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-Name Accounting Standards Codification
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-Section 65
-Paragraph 2
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Reference 32: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (c)(1)
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Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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-Section 50
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Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)
-URI https://asc.fasb.org/extlink&oid=126983759&loc=SL121830611-158277

+ Details

Net loss per share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net loss per share

Net loss per share for the three months ended March 31, 2023 and 2022 was as follows:


	Three Months Ended March 31,
	2023		2022
Numerator:
Net loss attributable to common stockholders:
Basic	$	(24,353)	$	(72,625)
Adjustment for change in fair value of liability classified stock options	(354)		(302)
Diluted	$	(24,707)	$	(72,927)

Denominator:
Weighted-average common stock outstanding:
Basic	66,739,308		61,367,368
Adjustment for dilutive effect of liability classified stock options	2,772		10,802
Diluted	66,742,080		61,378,170

Net loss per common share – basic	$	(0.36)	$	(1.18)
Net loss per common share – diluted	$	(0.37)	$	(1.19)

Weighted average number of shares of common stock used in the basic and diluted earnings per share calculations include Exchangeable Shares and the pre-funded warrants issued in connection with the Company’s June 2019 and January 2020 offerings as the warrants are exercisable at any time for nominal cash consideration.

Investments

3 Months Ended

Mar. 31, 2023

Investments, All Other Investments [Abstract]

Investments

Short-term investments are high credit quality investment grade debt securities with original maturities exceeding three months and accrue interest based on a fixed interest rate for the term. Short-term investments also consist of guaranteed investment certificates (“GICs”) acquired from financial institutions. The Company classifies its marketable securities as available-for-sale securities and are carried at fair value.

Long-term investments at March 31, 2023 consist of debt securities with remaining maturities exceeding twelve months and equity securities of $886 acquired for strategic purposes or in connection with licensing and collaboration agreements (December 31, 2022 - $886). As the Company's investments in equity securities do not have readily determinable fair value, they are carried at cost, less any impairment, including any adjustments resulting from observable price changes.

Unrealized fair value gains and losses for investments classified as available-for-sale are recorded through other comprehensive income (loss) in stockholders' equity. When the fair value of an available-for-sale security falls below the amortized cost basis it is evaluated to determine if any of the decline in value is attributable to credit loss. Decreases in fair value attributable to credit loss are recorded directly to the consolidated statement of loss with a corresponding allowance for credit losses, limited to the amount that the fair value below the amortized cost basis. If the credit quality subsequently improves the allowance is reversed up to a maximum of the previously recorded credit losses. When the Company intends to sell an impaired available-for-sale security, or if it is more likely than not that the Company will be required to sell the security prior to recovering the amortized cost basis, the entire fair value adjustment will immediately be recognized in the consolidated statement of loss with no corresponding allowance for credit losses. Realized gains and losses and credit losses, if any, on available-for-sale securities are included in interest income (expense), based on the specific identification method. Available-for-sale securities are also adjusted for amortization of premiums and accretion of discounts to maturity, with such amortization and accretion included within interest income.


	March 31, 2023
	Amortized Cost		Unrealized Gain (Loss)		Fair Value
Short-term investments:
GICs and mutual funds	$	92,371	$	—	$	92,371
U.S. Treasury notes	34,175		209		34,384
Corporate debt securities	32,484		(31)		32,453
	159,030		178		159,208
Long-term investments:
U.S. Treasury notes	15,781		183		15,964
Corporate debt securities	55,265		359		55,624
Equity securities	886		—		886
	71,932		542		72,474

	$	230,962	$	720	$	231,682

IPR&D and Goodwill	3 Months Ended
IPR&D and Goodwill	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
IPR&D and Goodwill	IPR&D and Goodwill Acquired IPR&D In-process research and development assets (“IPR&D”) acquired in the 2016 Kairos Therapeutics Inc. (“Kairos”) business combination are classified as indefinite-lived intangible assets and are not currently being amortized. The carrying value of IPR&D, net of impairment was $17,628 at both March 31, 2023 and December 31, 2022. The Company concluded that there were no impairment indicators related to IPR&D as of March 31, 2023. Goodwill The Company performed its most recent annual impairment test of goodwill as of December 31, 2022. As part of the evaluation of the recoverability of goodwill, the Company identified only one reporting unit to which the total carrying amount of goodwill has been assigned. As at December 31, 2022, the Company performed a qualitative assessment for its annual impairment test of goodwill after concluding that it was not more likely than not that the fair value of the reporting unit was less than its carrying value. Consequently, a quantitative impairment test was not required. The Company concluded that there were no impairment indicators related to goodwill as of March 31, 2023.

Liabilities

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Liabilities

Accounts payable and accrued expenses consisted of the following:


	March 31, 2023		December 31, 2022
Trade payables	$	6,433	$	7,863
Accrued research and development expenses	36,650		39,358
Goods and services tax payable	—		16,244
Employee compensation and vacation accruals	6,178		14,365
Accrued legal and professional fees	8,202		7,799
Other	1,787		1,839
Total	$	59,250	$	87,468

As of March 31, 2023, the net outstanding liability related to contract liabilities in relation to the Company's restructuring program, which was implemented and completed in 2022, was approximately $310.

Other long-term liabilities consisted of the following:


	March 31, 2023		December 31, 2022
Liability for contingent consideration (note 12)	$	1,747	$	1,248
Liability from in-licensing agreements	1,047		1,047
Finance lease liability (note 11)	121		124
Other	680		682
Total	$	3,595	$	3,101

Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Shareholders' Equity

Stockholders’ Equity

a.Equity Offerings

2022 Public Offering

On January 31, 2022, the Company closed a public offering pursuant to which the Company sold 11,035,000 common shares, including the sale of 1,875,000 common shares to the underwriters upon their full exercise of their over-allotment option, at $8.00 per common share and 3,340,000 pre-funded warrants (note 8c) in lieu of common shares at $7.9999 per pre-funded warrant. Net proceeds were $107,534, after underwriting discounts, commissions and offering expenses.

b.Authorized Share Capital and Preferred Stock

The Company’s authorized share capital consists of 1,000,000,000 shares of stock, consisting of (i) 900,000,000 shares of common stock, par value $0.00001 per share, and (ii) 100,000,000 shares of preferred stock, par value $0.00001 per share.

In connection with the Plan of Arrangement, we issued to Computershare Trust Company of Canada, a trust company existing under the laws of Canada (the “Share Trustee”), one share of our preferred stock, par value $0.00001 per share, which has certain variable voting rights in proportion to the number of Exchangeable Shares outstanding (the “Special Voting Preferred Stock”), enabling the Share Trustee to exercise voting rights for the benefit of the Exchangeable Shareholders.

Immediately prior to the completion of the Redomicile Transactions, there were 61,699,387 Zymeworks BC Inc. common shares issued and outstanding. In connection with the consummation of the Plan of Arrangement, 60,274,854 shares of Common Stock and 1,424,533 Exchangeable Shares were issued to former Zymeworks BC shareholders. As of March 31, 2023, there were 656,888 Exchangeable Shares held by former Zymeworks BC shareholders (December 31, 2022: 1,424,533). We will issue shares of our common stock as consideration when a holder of Exchangeable Shares calls for Exchangeable Shares to be retracted by ExchangeCo, when ExchangeCo redeems Exchangeable Shares from the holder, or when CallCo purchases Exchangeable Shares

from the Exchangeable Shareholder under CallCo’s overriding call rights. These Exchangeable Shares and the Special Voting Preferred Stock, when taken together, are similar in substance to the Company’s common stock.

c.Pre-Funded Common Share Warrants

In connection with the public offerings completed on June 24, 2019, January 27, 2020 and January 31, 2022 (note 8a), the Company issued a total of 8,581,961 pre-funded warrants which granted holders of warrants the right to purchase up to 8,581,961 common shares of the Company, at an exercise price of $0.0001 per share.

The pre-funded warrants are exercisable by the holders at any time on or after the original issue date. The pre-funded warrants do not expire unless they are exercised or settled in accordance with the pre-funded warrant agreement. As the pre-funded warrants meet the condition for equity classification, proceeds from issuance of the pre-funded warrants, net of any transaction costs, are recorded in additional paid-in capital. Upon exercise of the pre-funded warrants, the historical costs recorded in additional paid-in capital along with exercise price collected from holders will be recorded in common shares.

On August 23, 2022, October 25, 2022 and October 27, 2022, a total of 6,502,737 pre-funded warrants were exercised in exchange for issuance of 6,502,675 common shares. As of March 31, 2023, there were 2,079,224 pre-funded warrants outstanding.

d.Stock-Based Compensation

In connection with redomicile transactions in 2022, Zymeworks BC Inc. assigned to the Company, and the Company assumed, all of Zymeworks BC Inc.’s rights and obligations under each of the stock-based compensation plans, as described below, and such plans became the Company’s stock-based compensation plans, with each outstanding award assumed by the Company and deemed exchanged for equivalent awards of the Company, except that the security issuable upon exercise or settlement, as applicable, will be shares of common stock of the Company rather than common shares of Zymeworks BC Inc.

Original Stock Option Plan

On July 14, 2006, the shareholders of the Company approved an employee stock option plan (the “Original Plan”). The total number of options outstanding is not to exceed 20% of the issued common shares of the Company. Options granted under the Original Plan are exercisable at various dates over their 10-year life. The exercise prices of the Company’s stock options under the Original Plan are denominated in Canadian dollars. Upon the effectiveness of the Company’s New Plan described below, no further options were issuable under the Original Plan. However, all outstanding options granted under the Original Plan remain outstanding, subject to the terms of the Original Plan and the applicable grant documents, until such outstanding options are exercised or they terminate or expire by their terms.

New Plan and Inducement Plan

On April 10, 2017, the Company’s shareholders approved a new stock option plan, which became effective immediately prior to the consummation of the Company’s initial public offering (“IPO”). This plan allows for the grant of options, and also permitted the Company to grant incentive stock options (“ISOs”), within the meaning of Section 422 of the Internal Revenue Code, to its employees, until the shares reserved for issuance of ISOs were depleted. On June 7, 2018, the Company’s shareholders approved an amendment and restatement of this plan (this plan, as amended and restated, the “New Plan”), which includes an article that allows the Company to grant restricted shares, restricted share units (“RSUs”) and other share-based awards, in addition to stock options. As of March 31, 2023, 3,807,249 shares of common stock were available for future award grants under the New Plan (December 31, 2022: 3,205,132 shares of common stock).

On January 5, 2022, board of directors approved the Zymeworks Inc. Inducement Stock Option and Equity Compensation Plan (the "Inducement Plan") and reserved 750,000 of the Company’s common shares for issuance pursuant to equity awards granted thereunder. As of March 31, 2023, 50,000 shares of common stock were available for future award grants under this plan.

RSUs

The following table summarizes the Company's RSU activity under the New Plan since December 31, 2022:


	Number of RSUs	Weighted- average grant date fair value ($)
Outstanding, December 31, 2022	227,223	17.36
Granted	864,100	8.03
Vested and settled	(32,633)	32.09
Forfeited	(59,834)	16.16
Outstanding, March 31, 2023	998,856	8.88

As of March 31, 2023, there was $5,984 of unamortized RSU expense that will be recognized over a weighted average period of 1.83 years.

Stock Options

The following table summarizes the Company’s stock options granted in Canadian dollars under the Original Plan and the New Plan:


	Number of Options	Weighted- Average Exercise Price (C$)	Weighted- Average Exercise Price ($)	Weighted- Average Contractual Term (years)	Aggregate intrinsic value (C$)	Aggregate intrinsic value ($)
Outstanding, December 31, 2022	2,147,141	19.02	14.03	6.29	1,460	1,078
Granted	—	—	—
Exercised	(163,151)	11.88	8.85
Forfeited	(58,917)	20.43	15.19
Outstanding, March 31, 2023	1,925,073	19.58	14.48	6.30	2,525	1,868

The following table summarizes the Company’s stock options granted in U.S. dollars under the New Plan and the Inducement Plan:


	Number of Options	Weighted- Average Exercise Price ($)	Weighted- Average Contractual Term (years)	Aggregate intrinsic value ($)
Outstanding, December 31, 2022	5,565,145	17.10	7.86	1,928
Granted	1,589,550	8.05
Exercised	(10,420)	7.05
Forfeited	(414,636)	18.96
Outstanding, March 31, 2023	6,729,639	14.86	8.09	5,404

During the three months ended March 31, 2023, the Company received cash proceeds of $1,516 from stock options exercised.

The stock options outstanding at March 31, 2023 expire at various dates from January 1, 2024 to March 9, 2033.

The estimated fair values of options granted to officers, directors, employees and consultants are amortized over the relevant vesting periods. Stock-based compensation expense for equity classified instruments, as well as the financial statement impact of the amortization and periodic revaluation of liability classified instruments, are recorded in research and development expense, general and administration expense and finance expense as follows:


	Three Months Ended March 31,
	2023		2022
Research and development expense:
Stock-based compensation expense for equity classified instruments	$	441	$	(2,747)
Change in fair value of liability classified instruments	4		(474)
	$	445	$	(3,221)
General and administrative expense:
Stock-based compensation expense for equity classified instruments	$	2,386	$	(2,232)
Change in fair value of liability classified instruments	(654)		(2,876)
	$	1,732	$	(5,108)
Finance expense (income):
Change in fair value of liability classified instruments	7		(30)
	$	7	$	(30)

Amounts for equity classified instruments above include stock-based compensation expense relating to RSUs of $655 for the three months ended March 31, 2023 (2022: $604).

The estimated fair value of stock options granted under the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:


	Three Months Ended March 31,
	2023		2022
Dividend yield	0	%	0	%
Expected volatility	67.8	%	77.3	%
Risk-free interest rate	3.82	%	1.84	%
Expected average life of options	6.07 years		5.93 years

The weighted-average Black-Scholes option pricing assumptions for liability classified stock options outstanding at March 31, 2023 and 2022 are as follows:


	March 31, 2023		March 31, 2022
Dividend yield	0	%	0	%
Expected volatility	80.6	%	74.8	%
Risk-free interest rate	3.70	%	2.04	%
Expected average option term	1.78 years		2.20 years
Number of liability classified stock options outstanding	563,403		911,400

At March 31, 2023, the unamortized compensation expense related to unvested options was $15,571. The remaining unamortized compensation expense as of March 31, 2023 will be recognized over a weighted-average period of 1.68 years.

e.Employee Stock Purchase Plan

On April 10, 2017, the Company’s shareholders approved an employee stock purchase plan (“ESPP”) which became effective immediately prior to the consummation of the Company’s IPO. As this plan is considered compensatory, the Company recognizes compensation expense on these awards based on their estimated grant date fair value using the Black-Scholes option pricing model. The Company recognizes compensation expense in the consolidated statements of loss and comprehensive loss on a straight-line basis over the requisite service period. For the three months ended March 31, 2023, the Company recorded

compensation expense of $141 (2022: $183) in research and development expense and general and administrative expense accounts. As of March 31, 2023, the total amount contributed by ESPP participants and not yet settled is $238 (December 31, 2022: $287).

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

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-Publisher FASB
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Research, Collaboration and Licensing Agreements

3 Months Ended

Mar. 31, 2023

License Agreements Research Collaborations And Development Agreements [Abstract]

Research, Collaboration and Licensing Agreements

Revenue recognized from the Company’s strategic partnerships is summarized as follows:


	Three Months Ended March 31,
	2023		2022
Jazz:
Development support payments	$	30,895	$	—
Drug supply	3,528		—

Research support and other payments from other partners	1,155		1,916
	$	35,578	$	1,916

Since December 31, 2022, there have not been any material changes to the key terms of our collaboration and license agreements, except the termination of the Collaboration and Cross License Agreement between Zymeworks BC and Daiichi Sankyo, dated September 26, 2016 (“2016 Daiichi Collaboration Agreement”). The termination of the 2016 Daiichi Collaboration Agreement did not have any financial impact during the three months ended March 31, 2023, and it has no impact on the License Agreement, dated May 14, 2018, by and between Daiichi Sankyo and Zymeworks BC, which remains in full force and effect. For further information on the terms and conditions of our existing collaboration and license agreements, please refer to the notes to the consolidated financial statements included in our Annual Report on Form 10-K for the year-ended December 31, 2022.

At March 31, 2023, contract assets from research, collaboration and licensing agreements were $3,000, which is presented within accounts receivable (December 31, 2022: $3,000) and contract liabilities were $32,941 (December 31, 2022: $32,941). Contract liabilities include deferred revenue relating to an upfront payment received in 2018 under the licensing and collaboration agreement with BeiGene. During the three months ended March 31, 2023, the Company did not recognize any revenue from performance obligations satisfied in relation to the deferred revenue (three months ended March 31, 2022: nil). Amounts not expected to be recognized as revenue in the next twelve months from March 31, 2023 have been classified as long-term deferred revenue.

Other expense, net

3 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Other expense, net

Other expense, net Other expense, net, consists of the following:


	Three Months Ended March 31,
	2023		2022
Foreign exchange loss, net	$	(456)	$	(362)
Other	(31)		47
	$	(487)	$	(315)

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

LeasesThe lease for our Vancouver location, which we entered into in January 2019, has an initial term expiring in February 2032, with two five-year extension options. In addition, the Company leases office space in Seattle, Washington with lease terms expiring in May 2027. None of the optional extension periods have been included in the determination of the right-of-use assets or the lease liabilities for operating leases as the Company did not consider it reasonably certain that the Company would exercise any such options. The Company also leases office equipment under capital lease agreements.

The balance sheet classification of the Company’s lease liabilities was as follows:


	March 31, 2023		December 31, 2022
Operating lease liabilities:
Current portion	$	3,372	$	3,322
Long-term portion	23,847		24,667
Total operating lease liabilities	27,219		$	27,989
Finance lease liabilities:
Current portion	16		16
Long-term portion	121		124
Total finance lease liabilities	137		140
Total lease liabilities	$	27,356	$	28,129

Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2023 was $1,141 and was included in net cash used in operating activities in the consolidated statement of cash flows.

As of March 31, 2023, the maturities of the Company’s operating lease liabilities were as follows:


	Operating leases

Within 1 year	$	4,456
1 to 2 years	4,531
2 to 3 years	4,615
3 to 4 years	4,481
4 to 5 years	3,110
Thereafter	10,901
Total operating lease payments	32,094
Less:
Imputed interest	(4,875)
Operating lease liabilities	$	27,219

As of March 31, 2023, the weighted average remaining lease term is 7.5 years and the weighted average discount rate used to determine the operating lease liability was 4.8% for leases in Canadian dollars and 2.8% for leases in U.S. dollars.

During the three months ended March 31, 2023, the Company incurred total operating lease expenses of $1,043 (2022: $3,865), which included lease expenses associated with fixed lease payments of $657 (2022: $3,828), and variable payments associated with common area maintenance and similar expenses of $386 (2022: $37).

Leases

The balance sheet classification of the Company’s lease liabilities was as follows:


	March 31, 2023		December 31, 2022
Operating lease liabilities:
Current portion	$	3,372	$	3,322
Long-term portion	23,847		24,667
Total operating lease liabilities	27,219		$	27,989
Finance lease liabilities:
Current portion	16		16
Long-term portion	121		124
Total finance lease liabilities	137		140
Total lease liabilities	$	27,356	$	28,129

As of March 31, 2023, the maturities of the Company’s operating lease liabilities were as follows:


	Operating leases

Within 1 year	$	4,456
1 to 2 years	4,531
2 to 3 years	4,615
3 to 4 years	4,481
4 to 5 years	3,110
Thereafter	10,901
Total operating lease payments	32,094
Less:
Imputed interest	(4,875)
Operating lease liabilities	$	27,219

Financial Instruments

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Financial Instruments

The Company evaluates financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification each reporting period. This determination requires the Company to make subjective judgments as to the significance of inputs used in determining fair value and where such inputs lie within the fair value hierarchy.

Fair Value Measurements

The Company measures certain financial instruments and other items at fair value.

To determine fair value, the Company uses a fair value hierarchy that prioritizes the inputs, assumptions and valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:

•Level 1 inputs are unadjusted quoted market prices for identical instruments available in active markets.

•Level 2 inputs are inputs other than Level 1 prices, such as prices for a similar asset or liability that are observable either directly or indirectly. If the asset or liability has a contractual term, the input must be observable for substantially the full term. An example includes quoted market prices for similar assets or liabilities in active markets.

•Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assessment about market assumptions that would be used to price the asset or liability.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The Company’s financial instruments consist of cash and cash equivalents, short-term and long-term investments in marketable and other securities, accounts receivable, accounts payable and accrued liabilities, contingent consideration, finance and operating lease obligations, and other long-term liabilities.

The carrying values of cash and cash equivalents, investments in marketable securities, accounts receivable and accounts payable and accrued liabilities approximate their fair values due to the near-term maturities of these financial instruments. As at March 31, 2023, long-term investments in equity securities of private entities are accounted for as available for sale at their fair values. Other long-term liabilities for contingent consideration related to business acquisitions are recorded at fair value on the acquisition date and are adjusted quarterly for changes in fair value. Changes in the fair value of contingent consideration liabilities can result from changes in anticipated milestone payments and changes in assumed discount periods and rates. These inputs are unobservable in the market and therefore categorized as level 3 inputs as defined above.

The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation techniques used to determine such fair value:


	March 31, 2023		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents:
Cash and GICs	$	181,583	$	181,583	$	—	$	—
Investments:
GICs and mutual funds	92,371		92,371		—		—
U.S. Treasury notes	50,348		50,348		—		—
Corporate debt securities	88,077		—		88,077		—
Total	$	412,379	$	324,302	$	88,077	$	—

Liabilities
Liability for contingent consideration (note 13)	1,747		—		—		1,747
Total	$	1,747	$	—	$	—	$	1,747


	December 31, 2022		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Cash and GICs	$	400,912	$	400,912	$	—	$	—
Investments:
GICs	91,320		91,320		—		—
Total	$	492,232	$	492,232	$	—	$	—

Liabilities
Liability for contingent consideration (note 13)	1,248		—		—		1,248
Total	$	1,248	$	—	$	—	$	1,248

The following table presents the changes in fair value of the Company’s liability for contingent consideration:


	Liability at the beginning of the period		Increase (decrease) in fair value of liability for contingent consideration		Amounts paid or transferred to payables		Liability at end of the period
Three months ended March 31, 2023	$	1,248	$	499	$	—	$	1,747
Three months ended March 31, 2022	$	1,498	$	—	$	(250)	$	1,248

Concentration of Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, long-term investments and accounts receivable. Cash and cash equivalents and investments in marketable securities are invested in accordance with the Company’s cash investment policy with the primary objective being the preservation of capital and maintenance of liquidity. The cash investment policy includes guidelines on the quality of financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company limits its exposure to credit loss by placing its cash and cash equivalents and short-term investments with high credit quality financial institutions.

At March 31, 2023, the maximum exposure to credit risk for accounts receivable was $66,916, 90% of which was from Jazz Pharmaceuticals Ireland Limited (a subsidiary of Jazz Pharmaceuticals plc, collectively referred to as “Jazz”) (December 31, 2022: $33,400) and all accounts receivable are due within the next 12 months. As at March 31, 2023 and December 31, 2022, the Company has recognized nominal amounts of provision for expected credit losses in relation to accounts receivable.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s short-term cash requirements are primarily to settle its financial liabilities, which consist primarily of accounts payable and accrued liabilities falling due within 45 days and current portion of lease obligations falling due within the next 12 months, with medium-term requirements to invest in property and equipment and research and development. The Company’s principal sources of liquidity to settle its financial liabilities are cash, cash equivalents, short-term and long-term investments, collection of accounts receivable relating to research collaboration and license agreements and additional public equity offerings as required. The Company believes that these principal sources of liquidity are sufficient to fund its operations for at least the next 12 months.

Foreign Currency Risk

The Company incurs certain operating expenses in currencies other than the U.S. dollar and accordingly is subject to foreign exchange risk due to fluctuations in exchange rates. The Company does not use derivative instruments to hedge exposure to foreign exchange risk due to the low volume of transactions denominated in foreign currencies. At March 31, 2023, the Company’s net monetary assets denominated in Canadian dollars were $2,636 (C$3,607).

The operating results and financial position of the Company are reported in U.S. dollars in the Company’s interim condensed consolidated financial statements. The fluctuation of the U.S. dollar relative to the Canadian dollar and other foreign currencies will have an impact on the reported balances for net assets, net loss and stockholders’ equity in the Company’s interim condensed consolidated financial statements.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments The Company has entered into research collaboration agreements with strategic partners in the ordinary course of operations that may include contractual milestone payments related to the achievement of pre-specified research, development, regulatory and commercialization events and indemnification provisions, which are common in such agreements. Pursuant to the agreements, the Company is obligated to make research and development and regulatory milestone payments upon the occurrence of certain events and royalty payments based on net sales. The maximum amount of potential future indemnification is unlimited, however, the Company currently holds commercial and product liability insurance that limits the Company’s liability and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to indemnification obligations for any period presented in the interim condensed consolidated financial statements. In connection with the Company’s 2016 Kairos acquisition, the Company may be required to make future payments of up to an aggregate of C$8.5 million, consisting of (i) a C$2.5 million payment when the first patient is dosed in the first Phase 2 trial and (ii) a C$6.0 million payment when the first patient is dosed in the first Phase 3 trial, to CDRD Ventures Inc. (“CVI”) upon the direct achievement of certain development milestones for products incorporating certain Kairos intellectual property. In addition, CVI is eligible to receive low single-digit royalty payments from the Company on the net sales of such products. For out-licensed products and technologies incorporating certain Kairos intellectual property, the Company may also be required to pay CVI a mid-single digit percentage of certain future revenue. As of March 31, 2023, the contingent consideration had an estimated fair value of $1,747, which has been recorded within other long-term liabilities on the Company’s consolidated balance sheet (December 31, 2022: $1,248). The contingent consideration was calculated using a probability weighted assessment of the likelihood of the milestones being met, a probability adjusted discount rate that reflects the stage of the development and time to complete the development. Contingent consideration is a financial liability and measured at its fair value at each reporting period, with any changes in fair value from the previous reporting period recorded within research and development expenses in the statement of loss and comprehensive loss. Contingencies From time to time, the Company may be subject to various legal proceedings and claims related to matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 25, 2023, Zymeworks BC Inc. (“Zymeworks BC”), a subsidiary of the Company, Zymeworks Biopharmaceuticals Inc. (“ZBI”), a subsidiary of Zymeworks BC, Zymeworks Zanidatamab Inc. (“ZZI”), a subsidiary of ZBI formed in December 2022 focused on the Company’s development program for zanidatamab, and Jazz Pharmaceuticals, Inc. (“Jazz Inc.”), entered into a Stock and Asset Purchase Agreement (the “Transfer Agreement”). Under the Transfer Agreement, (i) Jazz Inc. will acquire from ZBI 100% of the issued and outstanding capital stock of ZZI, (ii) Jazz Inc. will engage certain Zymeworks BC and ZZI employees associated with the development of zanidatamab, and (iii) Zymeworks BC and ZBI will transfer to Jazz Inc. or one of its affiliates contracts with respect to the engagement of certain independent contractors of Zymeworks BC and ZBI that currently work on the Program (as defined below). In addition, Jazz Inc. will acquire from Zymeworks BC and ZBI certain contracts related to the Program, organizational documents and other records of ZZI, certain regulatory filings related to the Program, certain other books, records and other files, documents and information related to the Program, and certain employment records of service providers to be employed by Jazz Inc. and its affiliates following the Closing (as defined below). Subject to the terms and conditions of the Transfer Agreement, Jazz Inc. or one of its affiliates will assume certain liabilities that arise following the Closing related to the acquired assets and the Program, including with respect to transferred service providers. Zymeworks BC and Jazz (an affiliate of Jazz Inc.) will amend and restate the license and collaboration agreement dated October 18, 2022 by and between Zymeworks BC and Jazz (the “Original Jazz Collaboration Agreement”) (as amended the “Amended Jazz Collaboration Agreement”) to reflect the transfer of responsibility for the Program. Under the Amended Jazz Collaboration Agreement, the financial terms of the Original Jazz Collaboration Agreement, as previously disclosed, will be unchanged, except that the costs of the Program (including ongoing costs related to the transferred service providers) incurred following the Closing will be directly borne by Jazz instead of being incurred by Zymeworks BC and charged back to Jazz for reimbursement, though Zymeworks BC will remain eligible for reimbursement of certain costs for activities where Zymeworks BC maintains responsibility under the Amended Jazz Collaboration Agreement. However, certain costs of the Program that Zymeworks BC expects to incur will not be recovered by Zymeworks BC. Under the Amended Jazz Collaboration Agreement, Jazz and Zymeworks BC will net the costs for which each is responsible. These costs are expected to be finalized by the parties by mid-2023. “Program” refers to (i) ongoing clinical trials in certain sites in South Korea that are the responsibility of Zymeworks BC under the Original Jazz Collaboration Agreement and (ii) clinical trials for zanidatamab, other than the studies referenced in (i), initiated by Zymeworks BC in the Territory (as defined in the Original Jazz Collaboration Agreement) prior to the execution of the Original Jazz Collaboration Agreement. The consummation of the transactions contemplated by the Transfer Agreement, including the execution of the Amended Jazz Collaboration Agreement, are expected to occur in May 2023 (the “Closing”). In connection with the Closing, the parties will enter into a transition services agreement pursuant to which Zymeworks BC and ZBI will provide to Jazz Inc. and Jazz Inc. will provide to Zymeworks BC and ZBI certain services to support the transfer of the acquired assets and the Program on a transitional basis.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the audited consolidated financial statements of the Company and the accompanying notes thereto for the year ended December 31, 2022. These unaudited interim condensed consolidated financial statements reflect all adjustments, consisting solely of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three months ended March 31, 2023 and 2022 are not necessarily indicative of results that can be expected for a full year. These unaudited interim condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2022. All amounts expressed in the interim condensed consolidated financial statements of the Company and the accompanying notes thereto are expressed in thousands of U.S. dollars, except for share and per share data and where otherwise indicated. References to “$” are to U.S. dollars and references to “C$” are to Canadian dollars.
Use of Estimates	Use of Estimates The preparation of interim condensed consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and judgments in certain circumstances that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, most notably those related to revenue recognition including estimated timing of completion of performance obligations required to meet revenue recognition criteria, accrual of expenses including clinical and preclinical study expense accruals, stock-based compensation, valuation allowance for deferred taxes, benefits under the Scientific Research and Experimental Development (“SR&ED”) program, and other contingencies. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations and financial condition, including revenues, expenses, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are evolving and highly uncertain, such as the duration and severity of outbreaks, including potential future waves or cycles, and the effectiveness of actions taken to contain and treat COVID-19. The Company considered the potential impact of COVID-19 when making certain estimates and judgments relating to the preparation of these interim condensed consolidated financial statements. While there was no material impact to the Company’s interim condensed consolidated financial statements as of and for the three months ended March 31, 2023, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in a material impact to the Company’s consolidated financial statements in future reporting periods.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent accounting pronouncements not yet adopted The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the business, or that no material effect is expected on the consolidated financial statements as a result of future adoption.

Net loss per share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Summary of Calculation of Diluted Income (Loss) Per Share

Net loss per share for the three months ended March 31, 2023 and 2022 was as follows:


	Three Months Ended March 31,
	2023		2022
Numerator:
Net loss attributable to common stockholders:
Basic	$	(24,353)	$	(72,625)
Adjustment for change in fair value of liability classified stock options	(354)		(302)
Diluted	$	(24,707)	$	(72,927)

Denominator:
Weighted-average common stock outstanding:
Basic	66,739,308		61,367,368
Adjustment for dilutive effect of liability classified stock options	2,772		10,802
Diluted	66,742,080		61,378,170

Net loss per common share – basic	$	(0.36)	$	(1.18)
Net loss per common share – diluted	$	(0.37)	$	(1.19)

Investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments, All Other Investments [Abstract]

Schedule of Available-for-Sale Securities Reconciliation


	March 31, 2023
	Amortized Cost		Unrealized Gain (Loss)		Fair Value
Short-term investments:
GICs and mutual funds	$	92,371	$	—	$	92,371
U.S. Treasury notes	34,175		209		34,384
Corporate debt securities	32,484		(31)		32,453
	159,030		178		159,208
Long-term investments:
U.S. Treasury notes	15,781		183		15,964
Corporate debt securities	55,265		359		55,624
Equity securities	886		—		886
	71,932		542		72,474

	$	230,962	$	720	$	231,682

Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:


	March 31, 2023		December 31, 2022
Trade payables	$	6,433	$	7,863
Accrued research and development expenses	36,650		39,358
Goods and services tax payable	—		16,244
Employee compensation and vacation accruals	6,178		14,365
Accrued legal and professional fees	8,202		7,799
Other	1,787		1,839
Total	$	59,250	$	87,468

Schedule of Other Long-term Liabilities

Other long-term liabilities consisted of the following:


	March 31, 2023		December 31, 2022
Liability for contingent consideration (note 12)	$	1,747	$	1,248
Liability from in-licensing agreements	1,047		1,047
Finance lease liability (note 11)	121		124
Other	680		682
Total	$	3,595	$	3,101

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Share-based Payment Arrangement, Restricted Stock Unit, Activity

The following table summarizes the Company's RSU activity under the New Plan since December 31, 2022:


	Number of RSUs	Weighted- average grant date fair value ($)
Outstanding, December 31, 2022	227,223	17.36
Granted	864,100	8.03
Vested and settled	(32,633)	32.09
Forfeited	(59,834)	16.16
Outstanding, March 31, 2023	998,856	8.88

Summary of Stock Options Granted

The following table summarizes the Company’s stock options granted in Canadian dollars under the Original Plan and the New Plan:


	Number of Options	Weighted- Average Exercise Price (C$)	Weighted- Average Exercise Price ($)	Weighted- Average Contractual Term (years)	Aggregate intrinsic value (C$)	Aggregate intrinsic value ($)
Outstanding, December 31, 2022	2,147,141	19.02	14.03	6.29	1,460	1,078
Granted	—	—	—
Exercised	(163,151)	11.88	8.85
Forfeited	(58,917)	20.43	15.19
Outstanding, March 31, 2023	1,925,073	19.58	14.48	6.30	2,525	1,868

The following table summarizes the Company’s stock options granted in U.S. dollars under the New Plan and the Inducement Plan:


	Number of Options	Weighted- Average Exercise Price ($)	Weighted- Average Contractual Term (years)	Aggregate intrinsic value ($)
Outstanding, December 31, 2022	5,565,145	17.10	7.86	1,928
Granted	1,589,550	8.05
Exercised	(10,420)	7.05
Forfeited	(414,636)	18.96
Outstanding, March 31, 2023	6,729,639	14.86	8.09	5,404

Schedule of Stock-Based Compensation Expense

Stock-based compensation expense for equity classified instruments, as well as the financial statement impact of the amortization and periodic revaluation of liability classified instruments, are recorded in research and development expense, general and administration expense and finance expense as follows:


	Three Months Ended March 31,
	2023		2022
Research and development expense:
Stock-based compensation expense for equity classified instruments	$	441	$	(2,747)
Change in fair value of liability classified instruments	4		(474)
	$	445	$	(3,221)
General and administrative expense:
Stock-based compensation expense for equity classified instruments	$	2,386	$	(2,232)
Change in fair value of liability classified instruments	(654)		(2,876)
	$	1,732	$	(5,108)
Finance expense (income):
Change in fair value of liability classified instruments	7		(30)
	$	7	$	(30)

Schedule of Estimated Fair Value of Stock Options Assumptions

The estimated fair value of stock options granted under the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:


	Three Months Ended March 31,
	2023		2022
Dividend yield	0	%	0	%
Expected volatility	67.8	%	77.3	%
Risk-free interest rate	3.82	%	1.84	%
Expected average life of options	6.07 years		5.93 years

The weighted-average Black-Scholes option pricing assumptions for liability classified stock options outstanding at March 31, 2023 and 2022 are as follows:


	March 31, 2023		March 31, 2022
Dividend yield	0	%	0	%
Expected volatility	80.6	%	74.8	%
Risk-free interest rate	3.70	%	2.04	%
Expected average option term	1.78 years		2.20 years
Number of liability classified stock options outstanding	563,403		911,400

Research, Collaboration and Licensing Agreements (Tables)

3 Months Ended

Mar. 31, 2023

License Agreements Research Collaborations And Development Agreements [Abstract]

Schedule of Revenue Recognized from Strategic Partnerships

Revenue recognized from the Company’s strategic partnerships is summarized as follows:


	Three Months Ended March 31,
	2023		2022
Jazz:
Development support payments	$	30,895	$	—
Drug supply	3,528		—

Research support and other payments from other partners	1,155		1,916
	$	35,578	$	1,916

Other expense, net (Tables)

3 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income

Other expense, net, consists of the following:


	Three Months Ended March 31,
	2023		2022
Foreign exchange loss, net	$	(456)	$	(362)
Other	(31)		47
	$	(487)	$	(315)

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Balance Sheet Classification of Lease Liabilities

The balance sheet classification of the Company’s lease liabilities was as follows:


	March 31, 2023		December 31, 2022
Operating lease liabilities:
Current portion	$	3,372	$	3,322
Long-term portion	23,847		24,667
Total operating lease liabilities	27,219		$	27,989
Finance lease liabilities:
Current portion	16		16
Long-term portion	121		124
Total finance lease liabilities	137		140
Total lease liabilities	$	27,356	$	28,129

Schedule of Maturities of Operating Lease Liabilities

As of March 31, 2023, the maturities of the Company’s operating lease liabilities were as follows:


	Operating leases

Within 1 year	$	4,456
1 to 2 years	4,531
2 to 3 years	4,615
3 to 4 years	4,481
4 to 5 years	3,110
Thereafter	10,901
Total operating lease payments	32,094
Less:
Imputed interest	(4,875)
Operating lease liabilities	$	27,219

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis


	March 31, 2023		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents:
Cash and GICs	$	181,583	$	181,583	$	—	$	—
Investments:
GICs and mutual funds	92,371		92,371		—		—
U.S. Treasury notes	50,348		50,348		—		—
Corporate debt securities	88,077		—		88,077		—
Total	$	412,379	$	324,302	$	88,077	$	—

Liabilities
Liability for contingent consideration (note 13)	1,747		—		—		1,747
Total	$	1,747	$	—	$	—	$	1,747


	December 31, 2022		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Cash and GICs	$	400,912	$	400,912	$	—	$	—
Investments:
GICs	91,320		91,320		—		—
Total	$	492,232	$	492,232	$	—	$	—

Liabilities
Liability for contingent consideration (note 13)	1,248		—		—		1,248
Total	$	1,248	$	—	$	—	$	1,248

Summary of Changes in Fair Value of the Company's Liability for Contingent Consideration

The following table presents the changes in fair value of the Company’s liability for contingent consideration:


	Liability at the beginning of the period		Increase (decrease) in fair value of liability for contingent consideration		Amounts paid or transferred to payables		Liability at end of the period
Three months ended March 31, 2023	$	1,248	$	499	$	—	$	1,747
Three months ended March 31, 2022	$	1,498	$	—	$	(250)	$	1,248

Net loss per share - Summary of Calculation of Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net loss attributable to common stockholders:
Basic	$ (24,353)	$ (72,625)
Adjustment for change in fair value of liability classified stock options	(354)	(302)
Diluted	$ (24,707)	$ (72,927)
Weighted-average common stock outstanding:
Basic (in shares)	66,739,308	61,367,368
Adjustment for dilutive effect of liability classified stock options (in shares)	2,772	10,802
Diluted (in shares)	66,742,080	61,378,170
Net loss per common share – basic (in dollars per share)	$ (0.36)	$ (1.18)
Net loss per common share – diluted (in dollars per share)	$ (0.37)	$ (1.19)

Investments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments, All Other Investments [Abstract]
Equity securities, fair value	$ 886	$ 886

Investments - Schedule of Available-for-Sale Securities Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Equity securities, fair value	$ 886	$ 886
Investments, cost	230,962
Investments, unrealized gain (loss)	720
Investments, fair value	231,682
Short-term investments:
Debt Securities, Available-for-Sale [Line Items]
Debt securities, amortized cost	159,030
Debt securities, unrealized gain (loss)	178
Debt securities, fair value	159,208
Long-term investments:
Debt Securities, Available-for-Sale [Line Items]
Equity securities, amortized cost	886
Equity securities, unrealized gain (loss)	0
Equity securities, fair value	886
Investments, cost	71,932
Investments, unrealized gain (loss)	542
Investments, fair value	72,474
GICs and mutual funds \| Short-term investments:
Debt Securities, Available-for-Sale [Line Items]
Debt securities, amortized cost	92,371
Debt securities, unrealized gain (loss)	0
Debt securities, fair value	92,371
U.S. Treasury notes \| Short-term investments:
Debt Securities, Available-for-Sale [Line Items]
Debt securities, amortized cost	34,175
Debt securities, unrealized gain (loss)	209
Debt securities, fair value	34,384
U.S. Treasury notes \| Long-term investments:
Debt Securities, Available-for-Sale [Line Items]
Debt securities, amortized cost	15,781
Debt securities, unrealized gain (loss)	183
Debt securities, fair value	15,964
Corporate debt securities \| Short-term investments:
Debt Securities, Available-for-Sale [Line Items]
Debt securities, amortized cost	32,484
Debt securities, unrealized gain (loss)	(31)
Debt securities, fair value	32,453
Corporate debt securities \| Long-term investments:
Debt Securities, Available-for-Sale [Line Items]
Debt securities, amortized cost	55,265
Debt securities, unrealized gain (loss)	359
Debt securities, fair value	$ 55,624

IPR&D and Goodwill (Details)	3 Months Ended
IPR&D and Goodwill (Details)	Mar. 31, 2023 USD ($) reportingUnit	Dec. 31, 2022 USD ($)
Acquired Indefinite-lived Intangible Assets [Line Items]
In-process research and development	$ 17,628,000	$ 17,628,000
Number of reporting units \| reportingUnit	1
Goodwill impairment loss	$ 0
IPR&D
Acquired Indefinite-lived Intangible Assets [Line Items]
In-process research and development	17,628,000	$ 17,628,000
Impairment of intangible assets	$ 0

Liabilities - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Trade payables	$ 6,433	$ 7,863
Accrued research and development expenses	36,650	39,358
Goods and services tax payable	0	16,244
Employee compensation and vacation accruals	6,178	14,365
Accrued legal and professional fees	8,202	7,799
Other	1,787	1,839
Total	$ 59,250	$ 87,468

Liabilities - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Other Liabilities Disclosure [Abstract]
Liability related to employee severance termination benefits and other contract liabilities	$ 310

Liabilities - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Total	Total
Liability for contingent consideration (note 12)	$ 1,747	$ 1,248
Liability from in-licensing agreements	1,047	1,047
Finance lease liability (note 11)	121	124
Other	680	682
Total	$ 3,595	$ 3,101

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands				2 Months Ended	3 Months Ended		31 Months Ended
	Oct. 13, 2022	Jan. 31, 2022	Jul. 14, 2006	Oct. 27, 2022	Mar. 31, 2023	Mar. 31, 2022	Jan. 31, 2022	Dec. 31, 2022	Oct. 12, 2022	Jan. 05, 2022
Temporary Equity [Line Items]
All classes of stock, shares authorized					1,000,000,000
Common stock, shares authorized (in shares)					900,000,000			900,000,000
Common stock, par value per share (in dollars per share)					$ 0.00001			$ 0.00001
Preferred stock, shares authorized (in shares)					100,000,000			100,000,000
Preferred stock, par value (in dollars per share)					$ 0.00001			$ 0.00001
Preferred stock, shares outstanding (in shares)					1			1
Preferred stock, shares issued (in shares)					1			1
Common shares issued (in shares)					64,083,770			63,059,501
Common shares outstanding (in shares)					64,083,770			63,059,501
Exchangeable shares, shares outstanding (in shares)					656,888			1,424,533
Shares granted with respect to maximum fixed amount equal, percentage			20.00%
Options granted under original plan exercisable period					10 years
Number of shares available for grant (in shares)					3,807,249			3,205,132
Proceeds from stock options exercised					$ 1,516
Unamortized compensation expense related to unvested options					$ 15,571
Remaining unamortized compensation expense, weighted-average period					1 year 8 months 4 days
Total amount contributed by ESPP participants					$ 238			$ 287
Pre-Funded Warrant
Temporary Equity [Line Items]
Pre-funded warrants (in shares)							8,581,961
Exercise price of warrants (in dollars per share)		$ 0.0001					$ 0.0001
Warrants exercised during period (in shares)				6,502,737
Issuance of common shares upon exercise of pre-funded warrants (in shares)				6,502,675
Warrants outstanding (in shares)					2,079,224
Inducement Plan
Temporary Equity [Line Items]
Number of shares available for grant (in shares)					50,000
Number of common shares reserved for issuance (in shares)										750,000
Restricted Share Units (RSUs)
Temporary Equity [Line Items]
Nonvested award, cost not yet recognized, amount					$ 5,984
Nonvested award, cost not yet recognized, period for recognition					1 year 9 months 29 days
Compensation charge					$ 655	$ 604
Employees Stock Purchase Plan
Temporary Equity [Line Items]
Compensation charge					$ 141	$ 183
Common stock
Temporary Equity [Line Items]
Redomicile transaction, number of shares issued	60,274,854
Exchangeable shares
Temporary Equity [Line Items]
Temporary equity, stock issued during period, shares, new issues	1,424,533
Zymeworks BC Inc
Temporary Equity [Line Items]
Common shares issued (in shares)									61,699,387
Common shares outstanding (in shares)									61,699,387
Offering
Temporary Equity [Line Items]
Number of shares issued (in shares)		11,035,000
Sale of stock (in dollars per share)		$ 8.00					8.00
Pre-funded warrants (in shares)		3,340,000
Warrants issued price (in dollars per share)		$ 7.9999					$ 7.9999
Net proceeds from issuance		$ 107,534
Over-Allotment Option
Temporary Equity [Line Items]
Number of shares issued (in shares)		1,875,000

Stockholders' Equity - Summary of RSUs Outstanding (Details) - Restricted Share Units (RSUs)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of RSUs
Outstanding, at beginning of period (in shares) \| shares	227,223
Granted (in shares) \| shares	864,100
Vested and settled (in shares) \| shares	(32,633)
Forfeited (in shares) \| shares	(59,834)
Outstanding, at end of period (in shares) \| shares	998,856
Weighted- average grant date fair value ($)
Outstanding, at beginning of period (in dollars per shares) \| $ / shares	$ 17.36
Granted (in dollars per share) \| $ / shares	8.03
Vested and settled (in dollars per share) \| $ / shares	32.09
Forfeited (in dollars per share) \| $ / shares	16.16
Outstanding, end of period (in dollars per shares) \| $ / shares	$ 8.88

Stockholders' Equity - Summary of Stock Options Granted (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2023 CAD ($)	Dec. 31, 2022 CAD ($)
Canadian Dollar Under the New Option Stock Plan
Number of Options
Beginning balance (in shares)	2,147,141	2,147,141
Granted (in shares)	0	0
Exercised (in shares)	(163,151)	(163,151)
Forfeited (in shares)	(58,917)	(58,917)
Ending balance (in shares)	1,925,073	1,925,073	2,147,141	2,147,141
Weighted Average Exercise Price
Beginning balance (in dollars per share) \| (per share)	$ 14.03	$ 19.02
Granted (in dollars per share) \| (per share)	0	0
Exercised (in dollars per share) \| (per share)	8.85	11.88
Forfeited (in dollars per share) \| (per share)	15.19	20.43
Ending balance (in dollars per share) \| (per share)	$ 14.48	$ 19.58	$ 14.03	$ 19.02
Weighted- Average Contractual Term (years)	6 years 3 months 18 days	6 years 3 months 18 days	6 years 3 months 14 days	6 years 3 months 14 days
Aggregate intrinsic value outstanding	$ 1,868	$ 1,868	$ 1,078	$ 1,078	$ 2,525	$ 1,460
U.S Dollar Under the New Option Stock Plan
Number of Options
Beginning balance (in shares)	5,565,145	5,565,145
Granted (in shares)	1,589,550	1,589,550
Exercised (in shares)	(10,420)	(10,420)
Forfeited (in shares)	(414,636)	(414,636)
Ending balance (in shares)	6,729,639	6,729,639	5,565,145	5,565,145
Weighted Average Exercise Price
Beginning balance (in dollars per share) \| $ / shares	$ 17.10
Granted (in dollars per share) \| $ / shares	8.05
Exercised (in dollars per share) \| $ / shares	7.05
Forfeited (in dollars per share) \| $ / shares	18.96
Ending balance (in dollars per share) \| $ / shares	$ 14.86		$ 17.10
Weighted- Average Contractual Term (years)	8 years 1 month 2 days	8 years 1 month 2 days	7 years 10 months 9 days	7 years 10 months 9 days
Aggregate intrinsic value outstanding \| $	$ 5,404	$ 5,404	$ 1,928	$ 1,928

Stockholders' Equity - Schedule of Stock-based Compensation Expense for Equity Classified Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense for equity classified instruments	$ 441	$ (2,747)
Change in fair value of liability classified instruments	4	(474)
Research and development	445	(3,221)
General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense for equity classified instruments	2,386	(2,232)
Change in fair value of liability classified instruments	(654)	(2,876)
General and administrative expense	1,732	(5,108)
Finance expense (income)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Change in fair value of liability classified instruments	7	(30)
Finance expense (income)	$ 7	$ (30)

Stockholders' Equity - Schedule of Estimated Fair Value of Stock Options Assumptions (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility	67.80%	77.30%
Risk-free interest rate	3.82%	1.84%
Expected average life of options	6 years 25 days	5 years 11 months 4 days
Liability Classified Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility	80.60%	74.80%
Risk-free interest rate	3.70%	2.04%
Expected average life of options	1 year 9 months 10 days	2 years 2 months 12 days
Number of liability classified stock options outstanding (in shares)	563,403	911,400

Research, Collaboration and Licensing Agreements - Schedule Of Collaborative Arrangements and Noncollaborative Arrangement Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	$ 35,578	$ 1,916
Research Support Payments And Other Service
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	1,155	1,916
Jazz \| Research Support Payments And Other Service
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	30,895	0
Jazz \| Drug supply
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	$ 3,528	$ 0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Research, Collaboration and Licensing Agreements - Additional Information - Strategic Partnership Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Contract assets	$ 3,000,000		$ 3,000,000
Performance obligation recognized	0	$ 0
Bei Gene
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred revenue	$ 32,941,000		$ 32,941,000

Other expense, net (Details) - USD ($) $ in Thousands	3 Months Ended
Other expense, net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
Foreign exchange loss, net	$ (456)	$ (362)
Other	(31)	47
Total other income net	$ (487)	$ (315)

Leases - Additional Information (Details) $ in Thousands	3 Months Ended
Leases - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) renewalOption	Mar. 31, 2022 USD ($)
Lessor, Lease, Description [Line Items]
Cash paid for measurement of operating lease liabilities	$ 1,141
Weighted average remaining lease term	7 years 6 months
Operating lease expense	$ 1,043	$ 3,865
Fixed lease payment	657	3,828
Variable lease payment	$ 386	$ 37
Canada, Dollars
Lessor, Lease, Description [Line Items]
Discount rate	4.80%
United States of America, Dollars
Lessor, Lease, Description [Line Items]
Discount rate	2.80%
British Columbia \| Building
Lessor, Lease, Description [Line Items]
Number of renewal options \| renewalOption	2
Renewal term	5 years

Leases - Schedule of Balance Sheet Classification of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Current portion	$ 3,372	$ 3,322
Long-term portion	23,847	24,667
Total operating lease liabilities	27,219	27,989
Current portion	16	16
Long-term portion	$ 121	$ 124
Finance Lease, Liability, Statement of Financial Position [Extensible List]	Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities
Total finance lease liabilities	$ 137	$ 140
Total lease liabilities	$ 27,356	$ 28,129

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract]
Within 1 year	$ 4,456
1 to 2 years	4,531
2 to 3 years	4,615
3 to 4 years	4,481
4 to 5 years	3,110
Thereafter	10,901
Total operating lease payments	32,094
Imputed interest	(4,875)
Operating lease liabilities	$ 27,219	$ 27,989

Financial Instruments - Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Assets measured at fair value	$ 412,379	$ 492,232
Liabilities
Financial liabilities measured at fair value	1,747	1,248
Liability for Contingent Consideration
Liabilities
Financial liabilities measured at fair value	1,747	1,248
Level 1
Assets
Assets measured at fair value	324,302	492,232
Liabilities
Financial liabilities measured at fair value	0	0
Level 1 \| Liability for Contingent Consideration
Liabilities
Financial liabilities measured at fair value	0	0
Level 2
Assets
Assets measured at fair value	88,077	0
Liabilities
Financial liabilities measured at fair value	0	0
Level 2 \| Liability for Contingent Consideration
Liabilities
Financial liabilities measured at fair value	0	0
Level 3
Assets
Assets measured at fair value	0	0
Liabilities
Financial liabilities measured at fair value	1,747	1,248
Level 3 \| Liability for Contingent Consideration
Liabilities
Financial liabilities measured at fair value	1,747	1,248
GICs and mutual funds \| Investments
Assets
Assets measured at fair value	92,371	91,320
GICs and mutual funds \| Level 1 \| Investments
Assets
Assets measured at fair value	92,371	91,320
GICs and mutual funds \| Level 2 \| Investments
Assets
Assets measured at fair value	0	0
GICs and mutual funds \| Level 3 \| Investments
Assets
Assets measured at fair value	0	0
U.S. Treasury notes \| Investments
Assets
Assets measured at fair value	50,348
U.S. Treasury notes \| Level 1 \| Investments
Assets
Assets measured at fair value	50,348
U.S. Treasury notes \| Level 2 \| Investments
Assets
Assets measured at fair value	0
U.S. Treasury notes \| Level 3 \| Investments
Assets
Assets measured at fair value	0
Corporate debt securities \| Investments
Assets
Assets measured at fair value	88,077
Corporate debt securities \| Level 1 \| Investments
Assets
Assets measured at fair value	0
Corporate debt securities \| Level 2 \| Investments
Assets
Assets measured at fair value	88,077
Corporate debt securities \| Level 3 \| Investments
Assets
Assets measured at fair value	0
Cash and GICs \| Cash and Cash Equivalents
Assets
Assets measured at fair value	181,583	400,912
Cash and GICs \| Level 1 \| Cash and Cash Equivalents
Assets
Assets measured at fair value	181,583	400,912
Cash and GICs \| Level 2 \| Cash and Cash Equivalents
Assets
Assets measured at fair value	0	0
Cash and GICs \| Level 3 \| Cash and Cash Equivalents
Assets
Assets measured at fair value	$ 0	$ 0

Financial Instruments - Summary of Changes in Fair Value of the Company's Liability for Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Contingent Consideration Liability [Roll Forward]
Liability at the beginning of the period	$ 1,248	$ 1,498
Increase (decrease) in fair value of liability for contingent consideration	499	0
Amounts paid or transferred to payables	0	(250)
Liability at end of the period	$ 1,747	$ 1,248

Financial Instruments - Additional Information (Details) $ in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2023 CAD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accounts receivable	$ 66,916		$ 33,400
Net monetary assets	$ 2,636	$ 3,607
Accounts Receivable \| Credit Concentration Risk \| Jazz
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Concentration risk, percentage	90.00%

Commitments and Contingencies (Details) $ in Thousands, $ in Millions	Mar. 31, 2023 USD ($)	Mar. 31, 2023 CAD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value	$ 1,747		$ 1,248
Kairos Acquisition
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liability		$ 8.5
Kairos Acquisition \| First Phase 2 Trial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liability		2.5
Kairos Acquisition \| First Phase 3 Trial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liability		$ 6.0

Subsequent Events (Details)	Apr. 25, 2023
Subsequent Event \| Jazz \| Zymeworks Zanidatamab Inc.
Subsequent Event [Line Items]
Percentage interest in subsidiary sold	100.00%