Guggenheim Starts Zenas Biopharma (ZBIO) at Buy

Guggenheim analyst Yatin Suneja initiates coverage on Zenas Biopharma (NASDAQ: ZBIO) with a Buy rating and a price target of $45.00.

The analyst comments: "Our investment thesis on ZBIO is centered on its lead asset, obexelimab, a potential best/first-in-class anti-CD19xFcγRIIb bifunctional B cell-inhibiting antibody, currently in development in IgG4-related disease (IgG4-RD; top-line Phase III results expected by ZBIO in 4Q2025), in multiple sclerosis (MS; Phase II top-line results expected by the company around mid-2025), in systemic lupus erythematosus (SLE; Phase II trial ongoing), and in warm autoimmune hemolytic anemia (wAIHA; Phase II initial results expected by ZBIO in 2024). Key pillars of our thesis include: (1) Obexe's MoA is strongly validated in IgG4-RD by AMGN's Uplizna (anti-CD19 mAb); (2) Obexe's non-depleting MoA could allow rapid recovery of B cells upon withdrawal of therapy, leading to more favorable safety; (3) convenient subQ QW administration; (4) Obexe targets the broad spectrum of B cells, including early precursors and plasma cells (both strongly involved in the pathogenesis of SLE and not directly targeted by anti-CD20 mAbs), boding well for efficacy in SLE and potential other indications where CD19 targeting has been recently validated, including gMG, (5) ZBIO is paving the way to build a pipeline-in-a-product. If Obexe is successfully developed, we estimate it could generate ~$1.8B in global risk-adjusted peak sales in just two indications (IgG4-RD and SLE), with potential upside driven by success in other indications."

For an analyst ratings summary and ratings history on Zenas Biopharma click here. For more ratings news on Zenas Biopharma click here.

Shares of Zenas Biopharma closed at $18.70 yesterday.

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