SCHEDULE: Redmile Group Discloses 4.9% Stake in Zymeworks

Redmile Group, LLC and its principal, Jeremy C. Green, have disclosed a 4.9% beneficial ownership stake in Zymeworks Inc., totaling 3,705,750 shares.

Summary

• Redmile Group, LLC and Jeremy C. Green reported beneficial ownership of 3,705,750 shares of Zymeworks Inc. common stock.
• This ownership represents 4.9% of Zymeworks Inc.'s total outstanding common stock.
• The shares are held by various private investment vehicles, collectively referred to as 'Redmile Clients,' which are managed by Redmile Group, LLC.
• Redmile Group, LLC serves as the investment manager for these clients, and Jeremy C. Green is the principal of Redmile Group, LLC.
• Both Redmile Group, LLC and Jeremy C. Green disclaim beneficial ownership of these shares, except to the extent of any pecuniary interest they may have.
• The percentage of ownership is calculated based on 75,166,196 shares outstanding as of August 5, 2025, plus an additional 415,000 shares issued in a private placement as of August 12, 2025.

Sentiment

Score: 7

Explanation: The disclosure of a substantial 4.9% beneficial ownership by Redmile Group, a specialized healthcare investor, suggests continued confidence in Zymeworks Inc. from a significant institutional holder. The statement that the shares were acquired in the ordinary course of business and not for influencing control indicates a passive, long-term investment perspective, which is generally a positive signal.

Positives

• A significant investment firm, Redmile Group, LLC, maintains a substantial 4.9% stake in Zymeworks Inc., indicating continued investor confidence.
• The investment is held in the ordinary course of business, suggesting a passive, long-term investment strategy rather than an activist intent to influence control.

Risks

• The reporting persons explicitly disclaim beneficial ownership except for their pecuniary interest, and state the shares were not acquired for the purpose of changing or influencing control of the issuer, which means their influence on Zymeworks' operations or strategic direction is limited or non-existent.

Future Outlook

NA

Industry Context

This filing indicates continued interest from specialized healthcare investors like Redmile Group in Zymeworks, a biotechnology company. Such disclosures are common for investment firms managing significant portfolios in specific sectors, reflecting their ongoing positions.

Corporate Governance

Stakeholder Impact

• Shareholders: The disclosure of a significant, passive stake by a reputable investment firm like Redmile Group may be viewed positively, potentially bolstering investor confidence and perception of Zymeworks' value.
• Management: The explicit statement that the investment is not for influencing control provides clarity to Zymeworks' management regarding Redmile Group's intentions, allowing them to focus on existing strategic plans without immediate pressure from this shareholder.

Key Dates

Recommendation

This filing is a routine disclosure of beneficial ownership by an investment firm, indicating a significant but passive stake in Zymeworks Inc. While the presence of a reputable investor like Redmile Group is generally positive, this specific filing does not provide new operational or financial data about Zymeworks that would warrant a change in investment thesis. It confirms an an existing, substantial institutional holding, suggesting a 'hold' recommendation as it doesn't present new catalysts for 'buy' or 'sell' based solely on this information.

Keywords

Zymeworks Inc., Redmile Group, Jeremy C. Green, Schedule 13G, Beneficial Ownership, Common Stock, Investment Management, Biotechnology, Pharmaceuticals