Zymeworks Inc. (ZYME) Earnings Call Transcript & Summary

Welcome to the Zymeworks webcast and conference call. [Operator Instructions] and the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Dr. Ryan Dercho, Senior Director, Corporate Affairs, Zymeworks. Please go ahead.

Good afternoon and welcome, everyone. As mentioned, my name is Ryan Dercho, Senior Director of Corporate Affairs at Zymeworks. Today, we will provide an update on Zymeworks key business drivers, including clinical trial updates and development plans for our lead assets as well as a strategic summary of recent announced partnerships. The call will be led by Dr. Ali Tehrani, Zymeworks' President and Chief Executive Officer; and Dr. Diana Hausman, Zymeworks' Chief Medical Officer. The speakers will be available for Q&A after the prepared remarks. Before we begin, I would like to remind you that we will be making forward-looking statements during this call. Forward-looking statements can be identified by words such as will, continue, aim, may, potential of, initiate, lead to, look forward to, expect, believe, plan, anticipate, enable and similar words. Forward-looking statements are based upon current expectations and various assumptions and are subject to the usual risks and uncertainties associated with companies in our industry and at our stage of development. For a discussion of these risks and uncertainties, we refer you to our 10-Q for the quarter ended March 31, 2020, as well as to our other filings with the SEC. As a reminder, the audio and slides of today's event will be available on Zymeworks website later today. I will now turn the call over to Ali.

Thank you, Ryan. Good afternoon, everyone, and thank you for joining us today. The focus of today's call is to highlight the transition of our lead therapeutic program, ZW25, from early into late-stage clinical development, which provides a clear path towards Zymeworks seeking its first drug approval in biliary tract cancer in 2022. We will present updated data supporting our conviction to this end. We will also present updated data supporting our upcoming plans to launch another pivotal study in first-line gastric cancer, going head-to-head against Herceptin as the standard of care. These accomplishments further deliver on our objective of getting ZW25 to patients as quickly as possible and also providing a new standard of care with greater benefit. I am also personally proud of the other aspects of these accomplishments, which further highlights the strength of our platforms to research and develop first- and best-in-class multifunctional therapeutics. I will now hand things over to our Chief Medical Officer, Dr. Diana Hausman, to provide the clinical update, and then I will be back to highlight other accomplishments and closing thoughts.

Thank you, Ali. These are exciting times for both of our lead clinical programs, ZW25 and ZW49, and we are working hard to advance them through clinical development with the goal of providing new options for patients with HER2-expressing cancers. Starting with ZW25, I'm excited to announce that we have taken a big step towards achieving that goal with the initiation of the first clinical site in our Phase II registration-enabling study in HER2-positive second-line biliary tract cancer. This represents a major milestone for ZW25 and for Zymeworks. And as we advance into this late stage of clinical development, I want to note that going forward, we will be using the name of zanidatamab instead of ZW25. Biliary tract cancers, which include cholangiocarcinomas, gall bladder cancers and some ampullary cancers, are relatively rare tumors that account for approximately 3% of all adult cancers worldwide. Biliary tract cancers have a poor prognosis and high unmet medical need. Patients are often diagnosed with advanced disease and are frequently in poor medical condition. Treatment options are limited and consist primarily of cytotoxic chemotherapy. Current standard of care for first-line treatment of advanced disease is gemcitabine and cisplatinum, associated with a response rate of 26% and overall survival of just under 1 year. Subsequent second-line therapy is also limited primarily to chemotherapy with response rates in the single digits and survival of about 6 months. Recent advances in the treatment of biliary tract cancers include a focus on targeted agents and chemo-free regimens. Pemigatinib, an oral tyrosine kinase inhibitor, recently received accelerated approval based on a response rate of 36% for previously treated patients with fibroblast growth factor receptor fusions and rearrangements which are found in up to 16% of intrahepatic cholangiocarcinomas. Approximately 19% of biliary tract cancers are HER2 positive, defined by overexpression and/or gene amplification of 2. The frequency of HER2 positivity is greatest in the gall bladder cancers and extrahepatic cholangiocarcinomas, although it is also present in approximately 5% of intrahepatic cholangiocarcinoma. As we presented previously at the ESMO Asia conference in November 2019, zanidatamab has demonstrated encouraging single-agent activity in patients with advanced biliary tract cancer with durable responses and a favorable safety profile. Since last November, we have continued to recruit patients into our ongoing Phase I study. And as you can see on Slide 4, in the snapshot of data from an unlocked database from May of this year, we continue to see exciting antitumor activity with tumor shrinkage and responses that compares quite favorably to the single-digit response rate seen with chemotherapy as well as the response rate that contributed to pemigatinib approval. We met with the FDA late last year and based on those discussions, have initiated a global Phase II study of single-agent zanidatamab in patients with advanced previously treated HER2 gene amplified biliary tract cancer to support accelerated approval based on the primary endpoint of objective response rate and secondary endpoints of duration of response and safety. We are conducting this study in collaboration with our development partner, BeiGene, and plan on enrolling approximately 100 patients with either gallbladder cancer or extrahepatic or intrahepatic cholangiocarcinoma at sites located in North America, Europe, Asia and South America. Additional details can be found on clinicaltrials.gov. We currently have Orphan Drug and Fast Track Designations from the FDA for zanidatamab in HER2-positive biliary tract cancer and are exploring opportunities for Breakthrough Therapy Designation. This study may enable filing of a BLA as early as 2022. And we plan on initiating a confirmatory study of zanidatamab in combination with chemotherapy as first-line treatment for patients with advanced HER2 positive biliary tract cancers in the second half of 2021. We're truly excited about the potential benefit zanidatamab may provide and believe this study will help establish a new standard of care for patients with advanced pretreated HER2-positive disease. We have also been making great progress in our program in gastroesophageal adenocarcinoma, or GEA, and are planning a second registration-enabling study for zanidatamab as first-line treatment for advanced HER2-positive GEA based on the strength of data we are generating in our ongoing Phase I and II studies. Gastric cancer, which includes gastric and gastroesophageal junction cancers, is the fifth most common cancer worldwide and the third leading cause of cancer death. Up to 30% of gastric cancers are HER2 positive. And current standard of care for these tumors as well as HER2-positive esophageal adenocarcinomas, consists of Herceptin in combination with chemotherapy. This approval was based on the ToGA Trial, which demonstrated a response rate of 47%, progression-free survival of about 7 months and overall survival of about 14 months. It's important to note, however, that standard of care may be evolving as ongoing Phase III studies are evaluating addition of a PD-1 inhibitor or other immunotherapy to a HER2-targeted agent in the first-line setting. As we presented last fall at ESMO and the Triple meeting in Boston, zanidatamab has demonstrated encouraging antitumor activity in heavily pretreated HER2-expressing GEA with good tolerability and durable disease control and responses, both as a single agent and in combination with chemotherapy. We've been expanding these data sets. And as you can see on Slide 5, again, in a snapshot from an unlocked database, in 34 response-evaluable patients with HER2-expressing GEA, we continue to see exciting single-agent antitumor activity with a 38% response rate and 62% disease control rate in patients who have received a median of 3 prior lines of treatment, including Herceptin. We've also expanded our experience in combination with either paclitaxel or capecitabine, both of which are used as single-agent chemotherapies for patients with progression after first-line treatment. As illustrated on Slide 6, combining zanidatamab with chemotherapy appears to contribute to increased response rate. We are currently seeing an overall response rate of 55%, including a 60% response rate in combination with paclitaxel. As a comparator, the response rate for paclitaxel alone in second-line HER2-positive GEA is about 20%. Based on the promising data we have seen with zanidatamab in GEA patients after multiple lines of treatment, including Herceptin, we are moving forward with our program in first-line HER2-positive GEA. Our Phase II first-line study with zanidatamab for standard-of-care chemotherapy is ongoing with patients enrolling in North America and South Korea, and we're very encouraged by the early data from this study. In addition, BeiGene recently announced initiation of a complementary Phase II trial, which is evaluating zanidatamab in standard-of-care chemo in combination with their PD-1 inhibitor, tislelizumab. Based on our Phase I data as well as the evolving data from the ongoing Phase II studies in first-line GEA, we believe zanidatamab is well positioned to take on current and potential new standard-of-care regimens and to ultimately replace Herceptin as the backbone HER2-targeted agent for GEA. We currently have Orphan Drug and Fast Track Designation for zanidatamab in GEA, and are planning on holding discussions with regulatory agencies this fall to initiate a Phase III registrational study early next year. In addition, as seen on Slide 7, we are continuing to evaluate zanidatamab in HER2-positive breast cancer and other cancers, such as colorectal cancer, where we continue to see encouraging antitumor activity. In HER2-positive breast cancer, we are enrolling patients in our combination Phase II study with palbociclib and fulvestrant that we are conducting in collaboration with Pfizer in North America and Spain. We are also evaluating zanidatamab in combination with chemotherapy to support moving forward into earlier lines of breast cancer treatment as well as exploring potential novel combinations. In addition, BeiGene is conducting a Phase II study of zanidatamab in combination with docetaxel in the first-line treatment of HER2-positive breast cancer. Turning to our second clinical candidate, the HER2 bispecific antibody drug conjugate, ZW49. While we are not providing a data update today, I wanted to provide a status update on the ongoing clinical trial. ZW49 is continuing to be evaluated in the clinic, although enrollment in the first half of the year was impacted by COVID-19. I'm happy to say that enrollment is back on track and accelerating, and we are continuing to enroll patients. In addition, 4 new sites have recently opened to recruitment in the United States. And by coordinating with BeiGene, we are also accelerating the initiation of Phase I sites in certain Asia Pacific countries. I will now hand things back to Ali.

Thank you, Diana. In addition to the clinical updates described by Diana, we're excited to highlight important business development announcements related to 2 of our long-time partners. Earlier today, we announced that we have entered into a new multi-specific antibody collaboration with Merck to develop antibody therapeutic candidates using our industry-leading Azymetric and EFECT platforms. Our original collaboration with Merck has been successful to date with numerous technical milestones achieved, including an expansion in 2014. The new collaboration announced today enables Merck to continue using our technologies as core development platforms to develop additional bispecific and multi-specific candidates. Under the terms of this new agreement, we will provide Merck with a worldwide royalty-bearing license to research, develop and commercialize up to 3 new multi-specific antibody toward Merck's therapeutic targets in human health. In exchange, Zymeworks will receive an undisclosed upfront payment and is eligible to receive up to $411 million in option exercise fees and clinical development and regulatory approval milestone payments, and up to $480 million in commercial milestone payments as well as tiered royalties on worldwide sales. Furthermore, in a demonstration of the utility and flexibility of our platforms, Merck will also receive a worldwide royalty-bearing license to research and develop and commercialize up to 3 multi-specific antibodies in animal health in exchange for additional milestone payments and tiered royalties. Merck is a global leader in oncology, and we're excited that they recognize the value of our technologies contribute towards the development of a broad spectrum of best- and first-in-class candidates for human and animal alike. We're also excited to announce that our long-term partner, Celgene, now a part of Bristol-Myers Squibb, recently expanded our collaboration to include the use of our silenced Fc effector function portion of the EFECT platform to be used in conjunction with the Azymetric platform. Together with the technology expansion, we also extend the research period to which BMS can continue to leverage both the Azymetric and EFECT platforms. Celgene, prior to their acquisition by BMS, was making tremendous progress in bringing bispecific and multi-specific programs towards the clinic. The extension under the BMS umbrella is a show of continued commitment to developing innovative biologics anchored with the Azymetric platform, and we look forward to updating you on specific progress in the near future. The upfront payment for this extension is $12 million. Other preclinical development and commercial milestones are unchanged, with the deal totaling $1.7 billion plus tiered royalties on future sales for the 10 potential programs under this collaboration. With our platform collaborations overall, 3 -- there continues to be over 45 programs in active research and development, and we look forward to providing specific updates and milestone achievements in the future. So far, we've heard several important clinical and business development updates today, and I would like to conclude by summarizing the key takeaways and then highlight the upcoming catalysts. Regarding ZW49, while our progress in the first half of the year was limited, Zymeworks 49 remains a top priority, and we're taking steps to accelerate the advancement of the program. As we've said before, we remain committed to providing a full data update prior to the start of the cohort expansion phase. Regarding zanidatamab, the key takeaways include strong single-agent data in biliary tract cancer, supporting the decision to initiate a registration-enabling study with the potential opportunity to submit a BLA application in 2022. Our data supports the thesis that zanidatamab can become the standard of care in HER2-positive biliary tract cancer. We also showed very compelling and competitive data in GEA for zanidatamab as a single agent and in combination with chemotherapy. Based on these data and the preliminary data from our ongoing Phase IIs, we believe zanidatamab can compete favorably against the standard of care and other emerging therapies. And last but not least, the interest -- the Azymetric platform for the development of multi-specific antibodies remains as strong as ever, providing opportunities to partner and expand our access to nondilutive cash flows and funding. In summary, the data that was updated today came from our Phase I single agent in chemotherapy combinations, which are represented on Slide 12. With respect to upcoming clinical catalysts, since the Phase I, we have initiated 5 additional Phase II trials, all of which we anticipate sharing initial data from over the next 6 to 12 months. In particular, we look forward to presenting these results from our ongoing Phase II study of zanidatamab plus chemotherapy in first-line GEA as well as the parallel Phase II study of zanidatamab plus chemotherapy and the anti-PD-1 tislelizumab in first-line GEA being conducted by BeiGene. These data will provide important benchmarks as we move towards initiating our second registration enablement study in first-line GEA early next year. Finally, as I mentioned earlier, we also look forward to presenting the results of the dose-escalation phase of ZW49 ahead of starting the expansion cohorts. With a strong balance sheet on hand, providing a runway into 2022 and likely beyond, and the potential opportunities to expand and accelerate the development and commercialization of zanidatamab through strategic partnerships, we believe we're well positioned to deliver on our vision for both of our clinical assets. Operator, we're now happy to take some questions.

[Operator Instructions] Our very first question comes from Stephen Willey with Stifel.

I appreciate the update here. Maybe for Diana first, can you maybe just speak to any kind of duration of response data you might have in either biliary or I guess, both single-agent gastric and then also in combination with chemo? Is that data that you have readily available as of this most recent cut?

So those data are still evolving. Obviously, we're very confident in our data as we are launching this new study seeking accelerated approval. And as I mentioned, duration of response is an important endpoint for that ultimate approval. And again, just to keep in mind, survival right now for second-line BTC is 6 months. So I think things -- anything that can achieve anything approaching 6 months is really providing a lot of benefit to patients.

Got it. And on the registrational frontline trial, it looks like now you're maybe going to be addressing the inclusion of PD-1 within a single trial design. Is that the strategic plan here now? And I guess, how does that then kind of factor into powering from a patient size perspective?

Sure. As you can imagine, these are -- such a study is -- would be -- or is quite a complex study design, and what we'll be doing is obviously talking to global regulatory agencies, including the FDA. So we'll have more details following those discussions. Right now, it's a little too early to give any specific detail.

Okay. And then maybe just lastly for either Ali or for Diana. We obviously get a bunch of questions on 49. And I guess, I don't know if you can perhaps speak to the level of confidence regarding your ability to maybe complete dose escalation before the end of the year. And maybe secondly, if you could just talk about how you think about prioritizing the development of 49 from an indication-specific perspective, just given where you're planning to go now with zanidatamab.

Yes. Thanks, Steve. This is Ali. I'll take that. So as I said, ZW49 is a top priority for the company. And as you heard Diana, we have expanded our sites. We're looking at all the steps to accelerate our progress on our development with ZW49. As far as the data release goes, our standard philosophy has been to release data at the conclusion of the dose escalation when we have the fulsome benefit of the data to bring out. Our objective is to get there as quickly as possible. But with regards to a specific timing of when we're getting there, at this point, our focal point is just to advance the program, go forward. And when -- basically, when we get there, we'll provide the update. Now with part -- to the second part of your question is where will we position the asset? The answer to that question will really be data-driven. Again, we have always stated that ZW25, zanidatamab, will be differentiated when HER2 is the driver of the cancer and ZW49 will be differentiated when HER2 will be utilized as an address to bind to and to then get internalized and destroy the cancers. That thesis remains the same. And we believe as we go forward on a data-driven basis, we'll position the assets as such.

Our next question comes from Jim Birchenough with Wells Fargo.

Congrats on all the progress and the Merck and Bristol-Celgene update. I want to focus my questions on ZW49, it's easier to say than zanidatamab, although I just did. But for ZW49, just want to understand, as you go to other regions to enroll, do you need to start back at a lower dose or can you start at the dose cohort you've got up to? So in the U.S., if you got up to a certain dose cohort, can that be the starting dose in other regions as you expand? Or do you have to start back at the initial dose cohort in Asia Pacific as an example?

So maybe I'll take this one to start. Our presumption is that we're going to be starting at whatever is the current dose that's under evaluation under the umbrella of the trial. We're going to be using the same study protocol across all sites and regions. And that certainly was our experience with ZW25. As we expanded into multiple regions, we did not have to look at any different dose level.

And then Diana, maybe you could comment, when you think about the data we've seen from in HER2 and the data we've seen from Pfizer, which molecule do you think ZW49 looks most like? Acknowledging that you've got a biparatopic versus a single epitope targeting by the other 2. But when you think about the payload, the drug antibody ratio, is there one competitor that you think you look most similar to?

So Jim, this is Ali. Yes, I'll take that one. Look, our molecules are completely different. We've always stated that the differences will always come based on the backbone antibody, based on the linker and based on the payload. And we are truly excited about the opportunities of ADCs based on the other 2 agents that you mentioned, which showcases that ADCs can be quite powerful in this space. But at the end of the day, our molecule is very different. Our biologies are very different. And we're very excited to showcase at the appropriate time with a fulsome data on hand, the power of ZW49.

And then maybe just a follow-on. That's very helpful, Ali. Just in terms of the data we'll get when you get to the end of the dose escalation, will we have data in both gastric and breast and other HER2-expressing cancers? Or is there one tumor type that you think will dominate?

Again, thanks for that. Right now, we are enrolling multiple different tumor types. And at the conclusion of the dose escalation, we'll present the fulsome body of the data. So -- and that's why we've maintained that philosophy throughout that it's important for an asset like ZW49 for everything to be put on the table. So once we get there, we'll be very happy to share everything.

Great. And congrats again on the progress.

Our next question comes from Yigal Nochomovitz with Citigroup.

Congrats on the progress. Just on ZW49, to the extent that you can comment, can you provide any kind of update with respect to where you are in the dose cohort, what cohort you're in? How close to an MTD you're at -- you are? And then with respect to the MTD, even if you don't hit an MTD this year, is the expectation that you will show us the data up to that point by the end of the year?

Yigal, this is Ali. Listen, we completely appreciate that this is a central part of our story. And as I mentioned, this is a critical priority for the company. And as you heard Diana, the trial is ongoing. Enrollment is back on track. Our long-standing philosophy has been that, as I just mentioned to Jim, we're going to share the complete data set when we complete the dose-escalation portion of the study. So at this point, I would like to fall back on that philosophy to say that when we arrive at a fulsome completion of the dose escalation, we will be happy to share our data in its totality. But the trial is ongoing. Enrollment is progressing, and we are very much focused on the advancement of this program.

Okay. Got it. Just a question then on the Phase II biliary tract cancer trial. So you've got the ORR endpoint for accelerated approval. Is there an understanding or agreement from the FDA in terms of what the bar is that you need to hit on ORR in order to garner the accelerated approval in biliary?

So Ali, I can take this one. Thanks for the question. Yes, I think we don't -- there's not a specific number. I think if you look at the -- as I mentioned, the response rates right now are well below 10% with current treatments that are available for most patients with biliary tract cancers, including those with HER2-positive disease. We're certainly aiming to achieve a response rate that's significantly greater than that. And as I mentioned, I think that pemigatinib data is a good guide to the type of data that you need to get a quick approval in BTC and to be able to get it very quickly to patients who have high need. And I think the -- I think that's an understanding that's pretty generally accepted.

Okay. And then just one more question. Just regarding the Phase III registrational trial for gastroesophageal, it sounds like the plan is to do a study that is similar in structure to what BeiGene is doing. Could you comment any more on that? And if so, which PD-1 inhibitor would you plan to use?

So I think, certainly, we're using -- we're planning our Phase III programs based on the ongoing Phase II trial. And would likely want to look at both ZW25 -- sorry, zanidatamab, alone as well as in combination with a PD-1 inhibitor. If -- it's important to demonstrate zanidatamab's clinical efficacy as a stand-alone agent as well as contribution of components in any combination. And clearly, we're very excited about the potential of PD-1 inhibitors, and in particular tislelizumab. And we just don't want to provide specific details about what the Phase III study would be, but -- until we have regulatory approval of that study design. But obviously, we're very excited about BeiGene's trial with tislelizumab, and we will be working in partnership with them as we go forward. So I think that combination with tislelizumab would be the obvious next step.

Our next question comes from David Novak with Raymond James.

So just on zanidatamab, that's going to take some getting used to, it looks like you're showing objective responses in the GEA combo in 4 HER2 low expressors, which is quite impressive relative to what we saw in the Triple conference. So just thinking about your frontline trial, I guess, is it fair to assume that you'll be enrolling patients agnostic of IHC status in the frontline trial.

No, the details of the frontline trial are still to be confirmed, but I think what we will probably be focusing on to start in frontline treatment are patients who are truly HER2 gene amplified, not to HER2-negative trials. And a lot of the patients who were treated in our Phase I trial were HER2 low on new biopsies that we obtained, but they all -- most of them had, had prior trastuzumab. And it is, to me, really exciting to see the activity that we've seen with zanidatamab in that setting where patients have really acquired resistance to -- or I assume, they progressed after prior HER2-targeted agents.

Got it. So then maybe just pushing forward a little bit on that thought process. I mean, why do you believe you're seeing activity here in HER2 low GEA? Is it simply because they've progressed through troughs? And how does the company think about potential activity in using zanidatamab in combo with chemo in other HER2 indications, particularly as it relates to those with low HER2 expression? For example, will BeiGene enroll IHC 1 plus FISH negative in the docetaxel breast trial? Are you thinking about other indications where you'd actually look at that space specifically?

So maybe I'll take the gastric first. I think that's an area where I believe zanidatamab is particularly well suited to provide benefit. Gastric cancers are different than breast cancers in that they have a lot more heterogeneity of expression of HER2. And with our biparatopic mechanism, we've already shown that we combined better and internalized better in lower HER2-expressing cancer. So particularly in patients who have more heterogeneity or have had prior trastuzumab, I really believe that zanidatamab provides a real advantage. We're certainly exploring that in other cancers. We will be looking at that actually even in our biliary tract cancer. All our patients will be gene amplified. We will be looking specifically at some patients who have very low levels of protein expression on the surface, and I think that will be -- I'm very excited to see what those data show. And then in breast cancer, that's part of our strategy for the combination with palbociclib. While the study is initially enrolling just patients who are HER2 high expressers, we plan on, in the future, adding a cohort to really explore that combination in HER2 non-gene-amplified HER2 low expressing breast cancers because of the possible potential synergy between HER2 signaling and ER signaling in CDK4/6. So that's something I'm very excited about as well.

Got it. Perfect. That makes sense. And I guess just lastly. I might have missed this on the call, but on BTC, you mentioned that the first site is up and running. Has the first patient been dosed to date?

No, we've just -- to date, we've initiated our first site. And it's a very fluid situation in terms of patient screening, but we are open, and we are very, very excited about that.

Our next question comes from Gena Wang with Barclays.

I have 2 sets of questions. First is regarding the Merck collaboration. I know upfront, it was not disclosed. But just wondering, is the amount similar range versus Bristol Myers upfront payment, the $12 million? And my second sets of question is regarding ZW49. I know you cannot tell us too much details. But just wondering if you can share with us how many doses have you already dosed so far? And also will initial data from once every 2 weeks dosing or will also include once every 3 weeks dosing?

So with regards to the Merck deal and the upfront payment, naturally, we are not in a position to comment on the upfront. But what I can mention is that the deal is very different than the structure of the BMS-Celgene deal. Two different sort of genotypes and phenotypes to this. It's just different deals. But we are very excited about the Merck deal, as I stated, going not only into human health, but also animal health. And also the fact that it comes with more near-term milestone payments versus the typical deal that has some upfront and then mostly back ended. The unique component of the Merck deal is that more near-term component to the payments, which is material to our company, as I mentioned, in terms of cash flows and revenues. With regards to ZW49, again, what I want to fall back on is that we want to provide a fulsome update. And as you were asking, would that include both regimens? That is exactly what I mean by fulsome that we want to come out and showcase all of our data when it comes to that point of getting conclusive and having the opportunity to move into cohort expansions. So most certainly, we will provide a fulsome update ahead of the expansion cohorts.

Sorry Ali, so will you be able to share like how many doses have you already dosed for ZW49? And then for Merck upfront, is it fair to say upfront payment was higher than $12 million?

With regards to Merck, again, no comment at this point. We will have to leave that as undisclosed. With regards to ZW49, again, what I would love to say is that we'd like to provide an update when we have finished the dose escalation. At this point, you just have to stay tuned.

Our next question comes from Etzer Darout with Guggenheim Securities.

Great. The First, I wanted to know if you could provide a little bit more color on activities or strategies for zanidatamab with chemo-free agents and GEA. I'm just wondering, is there an opportunity based on how the program is designed in collaboration with BeiGene to explore sort of a chemo-free regimen as well? And secondly, just wondered if you could maybe comment on how COVID-19 may have impacted the palbo, zanidatamab study, if at all, and how that program is currently progressing?