Cash rich Zymeworks’ CEO & Chair to remain in UK

CPE News

CPE News (1.05.2024) РOn January 3, 2024, Zymeworks BC Inc., a subsidiary of Zymeworks Inc. (NASDAQ: ZYME), entered into a second amendment (Amendment) to the Employment Agreement effective January 15, 2022, as amended on December 30, 2022, between Kenneth Galbraith, the company’s Chair, Chief Executive Officer and President, and Zymeworks BC.

The Amendment amends the Employment Agreement to 1) establish Galbraith’s principal place of employment as the United Kingdom, or another location as agreed upon between the parties, which removes the requirement for Galbraith to relocate to Vancouver, B.C. or Seattle, Washington, 2) provide that the company will continue to reimburse or pay travel and lodging expenses for Galbraith and his immediate family for one trip per calendar year to Vancouver, BC or Seattle, Washington, 3) provide that the company will continue to secure and directly pay rental costs associated with temporary housing for Galbraith in Vancouver, BC and 4) make certain other administrative and conforming changes.

The original employment agreement had contemplated Galbraith’s relocation from UK to Vancouver, BC or Seattle, Washington by July 15, 2024.

Galbraith, 60, has served as Chair & CEO since January 2022. President since June 2023. Galbraith previously served as President from January 2022 to August 2022. Galbraith was a Managing Director at Five Corners Capital, Inc., which he founded in 2013, from February 2021 until January 2022. He has previously served as CEO of Liminal BioSciences Inc. and CEO of Fairhaven Pharmaceuticals Inc. Previously, Galbraith joined Ventures West Capital in 2007 and founded Five Corners Capital Inc. in 2013 to manage the continued operations of the Ventures West Investment Funds.

Delaware domiciled Zymeworks maintains its executive offices in Vancouver and Settle.

On January 4, 2024, Zymeworks announced certain information relating to its financial condition as of December 31, 2023, including its preliminary and unaudited estimate of cash resources (cash, cash equivalents and marketable securities) of approximately US $455 million.

Zymeworks’ 5%+ shareholders include EcoR1 Capital, LLC, BVF Partners L.P., Redmile Group, LLC and Morgan Stanley, which collectively control 44% of voting in Zymeworks, not including any conversion of the newly issued pre-funded warrants.

On December 28, 2023, EcoR1 Capital invested additional US $50 million in Zymeworks by way of placement of pre-funded warrants.

photo credit: Zymeworks