Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, Chardan Capital Markets adjusted its price target for (NASDAQ:ZURA) shares, reducing it to $10.00 from the previous $12.00, while sustaining a Buy rating on the stock. Currently trading at $1.49, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $5 to $26. Zura Bio Ltd. concluded its fiscal year 2024 with a strong cash position of $176.5 million, projecting financial sustainability through 2027. The company’s robust current ratio of 9.16 supports this outlook, though InvestingPro data indicates rapid cash consumption. The company, with a market capitalization of approximately $102 million, has launched a Phase 2 study of tibulizumab, its leading drug candidate, for the treatment of systemic sclerosis (SSc) and is preparing to commence another study for hidradenitis suppurativa (HS) in the second quarter of 2025.
Tibulizumab, which combines the anti-IL-17A antibody ixekizumab and the anti-BAFF antibody tabalumab, aims to regulate B cells and control inflammation. Zura Bio initiated the TibuSURE Phase 2 trial in adults with SSc in December 2024, planning to enroll about 80 patients who will be randomized into treatment and placebo groups. The primary outcome measure will be the modified Rodnan Skin Score (mRSS), with several secondary endpoints to address the complexity of the disease. Results from the TibuSURE trial are expected in the fourth quarter of 2026.
Additionally, Zura Bio is set to begin a Phase 2 study of tibulizumab for HS in the second quarter of 2025, targeting 120-180 patients with moderate to severe HS, who will be split into three groups to test two dosage levels and a placebo. The company anticipates sharing the top-line data from this HS study in the third quarter of 2026. Despite recent stock volatility, InvestingPro subscribers can access 6 additional key insights about Zura Bio’s financial health and market position.
Zura Bio is also closely monitoring developments in the field for its other drug candidates, crebankitug and torudokimab, which are contingent on external data releases. The company is observing Phase 2 data concerning IL-7Rα inhibitors for various conditions including ulcerative colitis, atopic dermatitis, and alopecia areata, as well as IL-33/ST2 for asthma and COPD, to inform its strategy for advancing these assets in Phase 2 trials.
In other recent news, Zura Bio Ltd. announced its fourth-quarter 2024 earnings, maintaining a solid financial position with approximately $177 million in cash, expected to sustain operations through 2027. Guggenheim reiterated its Buy rating and $15 price target, while Leerink Partners maintained an Outperform rating with a $12 price target. Both firms highlighted the company’s ongoing clinical trials, including the Phase II study for tibulizumab in systemic sclerosis and the upcoming Phase II trial for hidradenitis suppurativa, set to begin in the second quarter of 2025. The results from these trials are anticipated in 2026.
Zura Bio’s pipeline developments also include potential treatments such as crebankitug and torudokimab, with strategic decisions pending based on external trial data. Piper Sandler’s analysis noted that Zura Bio’s dual mechanism of action pipeline could gain validation from indirect catalysts from competitors, indicating broad expansion opportunities in immune conditions. Additionally, Novartis (SIX:NOVN)’ trials for ianalumab, a drug similar to Zura Bio’s treatments, are expected to yield results in 2025 and 2027, which could have implications for Zura Bio’s programs. These developments underscore the ongoing interest and potential in Zura Bio’s clinical and strategic initiatives.
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