Zura Bio's Veteran Leadership Eyes Repeat Success, Confident Analyst Sees 150% Upside

Raymond James initiated coverage on Zura Bio Limited ZURA with a price target of $20 and a Strong Buy rating.
Zura has three clinical-stage inflammation & immunology (I&I) drugs in development. All three assets were licensed from Pfizer Inc PFE or Eli Lilly And Co LLY on favorable economic terms to Zura.
In March, Zura Bio merged with JATT Acquisition Corp, a special-purpose acquisition company.
The business combination resulted in approximately $65 million in gross cash proceeds to support research and development initiatives and potential future acquisitions.
Immediately after its public debut, Zura Bio announced the license from Eli Lilly of tibulizumab, a potential first-in-class anti-IL-17 and anti-BAFF dual antagonist. Following the closing, the compound will be known as ZB-106. Zura Bio priced $80 million in private placement financing.
The analyst writes that some members of Zura (e.g., Chairman Amit Munshi, CMO Chris Cabell) previously played essential roles (CEO, Head of Clinical Development, then CMO) at I&I success story Arena Pharma (sold to Pfizer for $6.7 billion) and are “back in the arena” to do it again.
The analyst thesis is mainly a valuation thesis, as there are no near-term data catalysts for Zura.
Price Action: ZURA shares are up 28.9% at $6.90 on the last check Wednesday.

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