Zenas BioPharma Gains Outperform Rating From Analyst As Key Autoimmune Trials Progress

On Thursday, Wedbush initiated coverage on Zenas BioPharma, Inc. ZBIO, a clinical-stage global biopharmaceutical company focused on developing therapies for autoimmune disease.

Zenas BioPharma started trading on the NASDAQ in September 2024. The company closed an upsized initial public offering of 15.22 million shares at $17 per share, raising approximately $258.7 million in gross proceeds.

The company’s lead program obexelimab concluded enrollment in the Phase 3 INDIGO trial for immunoglobulin-G4-Related Disease (IgG4-RD). Topline data is expected by the end of 2025.

The company also initiated the Phase 2 MoonStone trial for Relapsing Multiple Sclerosis (MS) and the Phase 2 SunStone trial for Systemic Lupus Erythematosus (SLE).

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12-week primary endpoint results from the MoonStone trial are expected in the third quarter of 2025, and topline data from the SunStone trial are expected in the first half of 2026.

Analyst Martin Fan writes that obexelimab is a CD19 mAb that suppresses B cells, rather than eliminating them, to maintain immune protection against infections.

Wedbush initiated coverage with an outperform rating and a price forecast of $35.

Analyst Fan writes that the unique safety feature is especially important for conditions like IgG4-RD, MS, and SLE, where long-term safety and immune protection influence treatment decisions.

Demonstrating effectiveness in IgG4-RD and SLE reduces risk for ongoing programs and opens the door for expansion into other diseases where B cell depletion is an established treatment strategy.

“We encourage investors to investigate differentiating features and market opportunity for obexelimab ahead of an upcoming potential FDA approval of depleting CD19 mAb, Amgen Inc’s AMGN Uplizna in IgG4-RD, set for April 3.”

“We hold a long-term favorable view of ZBIO given its low-risk approach targeting a validated mechanism in inflammation and immunology (I&I), with potential to expand biologics market uptake through its first-in-class approach to maintaining protective immunity,” Wedbush analyst writes.

Price Action: ZBIO stock is up 2.36% at $8.45 at the last check Thursday.

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