CUSIP No. 98985W102
1
|
NAMES OF REPORTING PERSONS
Baker Bros. Advisors LP
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
|
(a) ¨
(b)
¨
|
3
|
SEC USE ONLY
|
4
|
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
|
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
|
5
|
SOLE
VOTING POWER
4,909,810 (1)
|
6
|
SHARED VOTING POWER
-0-
|
7
|
SOLE
DISPOSITIVE POWER
4,909,810 (1)
|
8
|
SHARED DISPOSITIVE POWER
-0-
|
9
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,909,810 (1)
|
10
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(See Instructions)
|
¨
|
11
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.99% (1)(2)
|
12
|
TYPE OF REPORTING PERSON (See Instructions)
IA, PN
|
|
(1)
|
Includes
6,000 shares of common shares (“Common Stock”) of Zymeworks Inc. (the “Issuer”)
underlying Stock Options (as defined below) which are exercisable in the next 60 days,
and 3,195,338 shares of Common Stock issuable upon exercise of the Pre-Funded Warrants
(as defined in Item 4 and subject to the limitations as described therein) directly held
by the Funds (as defined below).
|
|
(2)
|
Based
on 45,945,913 shares of the Common Stock of the Issuer outstanding as of December 2,
2020, as reported in the Issuer’s Prospectus filed with the Securities and Exchange
Commission (the “SEC”) on December 4, 2020, together with the shares that
would be issued in connection with the exercise of the Pre-Funded Warrants and Stock
Options.
|
CUSIP No. 98985W102
1
|
NAMES
OF REPORTING PERSONS
Baker Bros. Advisors (GP) LLC
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
|
(a) ¨
(b)
¨
|
3
|
SEC USE ONLY
|
4
|
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
|
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
|
5
|
SOLE
VOTING POWER
4,909,810 (1)
|
6
|
SHARED VOTING POWER
-0-
|
7
|
SOLE
DISPOSITIVE POWER
4,909,810 (1)
|
8
|
SHARED DISPOSITIVE POWER
-0-
|
9
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,909,810 (1)
|
10
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(See Instructions)
|
¨
|
11
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.99% (1)(2)
|
12
|
TYPE OF REPORTING PERSON (See Instructions)
HC, OO
|
|
(1)
|
Includes
6,000 shares of Common Stock of the Issuer underlying Stock Options (as defined below)
which are exercisable in the next 60 days, and 3,195,338 shares of Common Stock issuable
upon exercise of the Pre-Funded Warrants (as defined in Item 4 and subject to the limitations
as described therein) directly held by the Funds (as defined below).
|
|
(2)
|
Based
on 45,945,913 shares of the Common Stock of the Issuer outstanding as of December 2,
2020, as reported in the Issuer’s Prospectus filed with the SEC on December 4,
2020, together with the shares that would be issued in connection with the exercise of
the Pre-Funded Warrants and Stock Options.
|
CUSIP No. 98985W102
1
|
NAMES
OF REPORTING PERSONS
Felix J. Baker
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
|
(a) ¨
(b)
¨
|
3
|
SEC USE ONLY
|
4
|
CITIZENSHIP OR PLACE OF ORGANIZATION
United States
|
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
|
5
|
SOLE
VOTING POWER
4,909,810 (1)
|
6
|
SHARED VOTING POWER
-0-
|
7
|
SOLE
DISPOSITIVE POWER
4,909,810 (1)
|
8
|
SHARED DISPOSITIVE POWER
-0-
|
9
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,909,810 (1)
|
10
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(See Instructions)
|
¨
|
11
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.99% (1)(2)
|
12
|
TYPE
OF REPORTING PERSON (See Instructions)
IN, HC
|
|
(1)
|
Includes
6,000 shares of Common Stock of the Issuer underlying Stock Options (as defined below)
which are exercisable in the next 60 days, and 3,195,338 shares of Common Stock issuable
upon exercise of the Pre-Funded Warrants (as defined in Item 4 and subject to the limitations
as described therein) directly held by the Funds (as defined below).
|
|
(2)
|
Based
on 45,945,913 shares of the Common Stock of the Issuer outstanding as of December 2,
2020, as reported in the Issuer’s Prospectus filed with the SEC on December 4,
2020, together with the shares that would be issued in connection with the exercise of
the Pre-Funded Warrants and Stock Options.
|
CUSIP No. 98985W102
1
|
NAMES
OF REPORTING PERSONS
Julian C. Baker
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
|
(a) ¨
(b)
¨
|
3
|
SEC USE ONLY
|
4
|
CITIZENSHIP OR PLACE OF ORGANIZATION
United States
|
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
|
5
|
SOLE
VOTING POWER
4,909,810 (1)
|
6
|
SHARED VOTING POWER
-0-
|
7
|
SOLE
DISPOSITIVE POWER
4,909,810 (1)
|
8
|
SHARED DISPOSITIVE POWER
-0-
|
9
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,909,810 (1)
|
10
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(See Instructions)
|
¨
|
11
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.99% (1)(2)
|
12
|
TYPE
OF REPORTING PERSON (See Instructions)
IN, HC
|
|
(1)
|
Includes
6,000 shares of Common Stock of the Issuer underlying Stock Options (as defined below)
which are exercisable in the next 60 days, and 3,195,338 shares of Common Stock issuable
upon exercise of the Pre-Funded Warrants (as defined in Item 4 and subject to the limitations
as described therein) directly held by the Funds (as defined below).
|
|
(2)
|
Based
on 45,945,913 shares of the Common Stock of the Issuer outstanding as of December 2,
2020, as reported in the Issuer’s Prospectus filed with the SEC on December 4,
2020, together with the shares that would be issued in connection with the exercise of
the Pre-Funded Warrants and Stock Options.
|
Schedule
13G
Baker Bros. Advisors LP (the
“Adviser”), Julian C. Baker, Felix J. Baker and Baker Bros. Advisors (GP) LLC (the “Adviser GP” and together
with the Adviser, Julian C. Baker and Felix J. Baker, the “Reporting Persons”), have previously filed reports on Schedule
13D. As of the date hereof, the securities of Zymeworks Inc. (the “Issuer”) reported herein are held in the
ordinary course of business without the purpose of or with the effect of changing or influencing the control of the Issuer and
the securities are not held in connection with or as a participant in any transaction having that purpose or effect.
Item 1(a)
|
Name
of Issuer:
|
Zymeworks
Inc. (the “Issuer”)
Item 1(b)
|
Address
of Issuer’s Principal Executive Offices:
|
Suite
540, 1385 West 8th Avenue
Vancouver,
British Columbia, Canada V6H 3V9
Item 2(a)
|
Name
of Person Filing:
|
This Schedule 13G is being filed
jointly by the Reporting Persons.
Item 2(b)
|
Address
of Principal Business Office or, if None, Residence:
|
The
business address of each of the Reporting Persons is:
c/o
Baker Bros. Advisors LP
860
Washington Street, 3rd Floor
New
York, NY 10014
(212) 339-5690
The Adviser is a limited
partnership organized under the laws of the State of Delaware. The Adviser GP is a limited liability company organized under the
laws of the State of Delaware. The citizenship of each of Julian C. Baker and Felix J. Baker is the United States of America.
Item 2(d)
|
Title
of Class of Securities:
|
Common Shares, no par
value (“Common Stock”)
98985W102
Item 3.
|
If this
statement is filed pursuant to §§240.13d-1(b) or (c), check whether the person
filing is a:
|
(a)
¨ Broker or dealer registered under Section 15 of the Exchange Act.
(b)
¨ Bank as defined in section 3(a)(6) of the Exchange Act.
(c)
¨ Insurance company as defined in section 3(a)(19) of the Exchange Act.
(d)
¨ Investment company registered under section 8 of the Investment Company Act
of 1940.
(e)
x An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E).
(f)
¨ An employee benefit plan or endowment fund in accordance with Rule 13d-1(b)(1)(ii)(F).
(g)
x A parent holding company or control person in accordance with Rule 13d-1(b)(1)(ii)(G).
(h)
¨ A savings association as defined in Section 3(b) of the Federal Deposit Insurance
Act.
(i)
¨ A church plan that is excluded from the definition of an investment company
under section 3(c)(14) of the Investment Company Act of 1940.
(j)
¨Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
Items 5 through 9 and 11 of
each of the cover pages to this Schedule 13G are incorporated herein reference. Set forth below is the aggregate number of
shares of Common Stock directly held by each of 667, L.P. (“667”) and Baker Brothers Life Sciences, L.P.
(“Life Sciences”, and together with 667, the “Funds”) which may be deemed to be indirectly
beneficially owned by the Reporting Persons, as well as shares of Common Stock that may be acquired upon exercise of
pre-funded warrants with no expiration date that are exercisable at any time at an exercise price of $0.0001 per share into
Common Stock (“Pre-Funded Warrants”), subject to the limitation on exercise described below.
The information set forth below
is based on 45,945,913 shares of the Common Stock of the Issuer outstanding as of December 2, 2020, as reported in the Issuer’s
Prospectus filed with the Securities and Exchange Commission on December 4, 2020, together with the shares that would be issued
in connection with the exercise of the Pre-Funded Warrants and Stock Options. Such percentage figures are calculated in accordance
with Rule 13d-3 under the Securities Exchange Act of 1934, as amended.
Name
|
|
Number
of Shares
of Common Stock
we own or have
the right to acquire
within 60 days
|
|
|
Percent
of
Class
Outstanding
|
|
667, L.P.
|
|
|
433,207
|
|
|
|
0.88
|
%
|
Baker
Brothers Life Sciences, L.P.
|
|
|
4,476,603
|
|
|
|
9.11
|
%
|
Total
|
|
|
4,909,810
|
|
|
|
9.99
|
%
|
The Pre-Funded Warrants are only
exercisable to the extent that after giving effect to such exercise the holders and their affiliates and any other persons whose
beneficial ownership of shares of Common Stock that would be aggregated with the holders’ for purposes of Section 13(d)
of the Exchange Act would beneficially own in the aggregate, for purposes of Rule 13d-3 under the Exchange Act, no more than 9.99%
of the outstanding shares of Common Stock (“Maximum Percentage”).
By written notice to the
Issuer, the Funds may from time to time increase or decrease the Maximum Percentage applicable to that Fund to any other
percentage not in excess of 19.99%. Any such increase will not be effective until the 61st day after such notice is delivered
to the Issuer. As a result of this restriction, the number of shares that may be issued upon exercise of the Pre-Funded
Warrants by the above holders may change depending upon changes in the outstanding shares of Common Stock.
The options to purchase Common
Stock of the Issuer (“Stock Options”) held by Dr. Kelvin Neu during the period of his previous employment with the
Adviser will continue to vest subject to his continuing service on the Issuer’s Board of Directors (the “Board”).
The policy of the Funds and the Adviser does not permit employees of the Adviser to receive compensation for serving as directors
of the Issuer. Therefore, Dr. Neu has no pecuniary interest in the Stock Options or Common Stock received during his past period
of employment with the Adviser or from the exercise of these Stock Options. The Funds are instead entitled to the pecuniary interest
in the Stock Options, Common Stock and Common Stock received from the exercise of Stock Options received by Dr. Neu as directors’
compensation during his past period of employment with the Adviser. Dr. Neu, as a former full-time employee of the Adviser, entered
into a Nominee Agreement (the “Nominee Agreement”) with the Adviser on January 23, 2021. Pursuant to this Nominee
Agreement, Dr. Neu agreed that, with respect to the Stock Options, the Adviser will have dispositive power as well as the ability
to control the timing of exercise of the Stock Options and that any proceeds from their sale will be remitted to the Adviser net
of brokerage commissions for the ultimate benefit of the Funds consistent with the policies of the Adviser for current employees.
From the period of his past employment
with the Adviser, Dr. Neu holds 18,000 Stock Options, 6,000 of which are vested, at an exercise price of $24.28, which vest in
36 equal monthly installments beginning on April 16, 2020, with an expiration date of March 15, 2030 and 9,000 Stock Options,
none of which are vested, at an exercise price of $35.49, which vest on the date of the 2021 Annual General Meeting of Stockholders
and expire on May 7, 2030. The vesting of the above Stock Options is subject to Dr. Neu’s continuing service on the Board
on each vesting date.
The policy of the Funds and the
Adviser does not permit managing members of the Adviser GP or full-time employees of the Adviser to receive compensation for serving
as a director of the Issuer and the Funds are instead entitled to the pecuniary interest in the Common Stock received as director
compensation. Dr. Neu has no voting or dispositive power and no pecuniary interest in the Stock Options or Common Stock from the
exercise of Stock Options received as compensation for his previous service on the Board. Other than through their control of
the Adviser, Felix J. Baker and Julian C. Baker have neither voting nor dispositive power and have no direct pecuniary interest
in the Stock Options or Common Stock received form the exercise of Stock Options received as director’s compensation held
by Dr. Neu.
The Adviser has voting and investment
power over the Common Stock, Stock Options, Common Stock underlying such Stock Options and Common Stock received from the exercise
of Stock Options by Dr. Neu as directors’ compensation received for past service. The Adviser GP, and Felix J. Baker and
Julian C. Baker as managing members of the Adviser GP, may be deemed to have the power to vote or direct the vote of and the power
to dispose or direct the disposition of the Common Stock, Stock Options, Common Stock received from the exercise of Stock Options
and Common Stock underlying such Stock Options.
The Adviser GP, Felix J. Baker,
and Julian C. Baker as managing members of the Adviser GP, and the Adviser may be deemed to be beneficial owners if securities
of the Issuer directly held by the Funds.
The Adviser GP is the sole general
partner of the Adviser. Pursuant to the management agreements, as amended, among the Adviser, Life Sciences and 667 and their
respective general partners, the Funds’ respective general partners relinquished to the Adviser all discretion and authority
with respect to the investment and voting power of the securities held by the Funds, and thus the Adviser has completed and unlimited
discretion and authority with respect to the Funds’ investments and voting power over investments.
Item 5.
|
Ownership
of Five Percent or Less of a Class.
|
If this statement is
being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following ¨. N/A
Item 6.
|
Ownership
of More than Five Percent on Behalf of Another Person.
|
The information in Item
4 is incorporated herein by reference.
Item 7.
|
Identification
and Classification of the Subsidiary Which Acquired the Security Being Reported on by
the Parent Holding Company or Control Person.
|
The
information in Item 4 is incorporated herein by reference.
Item 8.
|
Identification
and Classification of Members of the Group.
|
N/A
Item 9.
|
Notice
of Dissolution of Group.
|
N/A
By signing below I certify that,
to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of
business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of
the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction
having that purpose or effect.
SIGNATURE
After reasonable inquiry and
to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
February
5, 2021
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BAKER BROS. ADVISORS LP
|
|
|
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By: Baker Bros. Advisors (GP) LLC,
its general partner
|
|
|
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By:
|
/s/
Scott L. Lessing
|
|
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Name: Scott L. Lessing
|
|
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Title: President
|
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BAKER BROS. ADVISORS (GP) LLC
|
|
|
|
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By:
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/s/ Scott L. Lessing
|
|
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Name: Scott L. Lessing
|
|
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Title: President
|
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/s/
Julian C. Baker
|
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Julian C. Baker
|
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|
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/s/
Felix J. Baker
|
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Felix J. Baker
|