Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Guggenheim reiterated its Buy rating and $15.00 price target for Zura Bio Ltd. (NASDAQ: ZURA), following the company’s fourth-quarter 2024 earnings release. The stock, currently trading at $1.49 with a market capitalization of $88 million, has experienced significant pressure, down over 65% in the past six months according to InvestingPro data. Zura Bio has made significant progress in its clinical trials, particularly with its drug tibulizumab (ZB-106), which is currently in a Phase II study for systemic sclerosis (Ssc). The study, named TibuSURE, began in December 2024 and is expected to yield topline data in the second half of 2026. Zura Bio management plans to provide updates on enrollment and data timelines later in the fall.
Additionally, Zura Bio has been given the green light by the FDA to proceed with a Phase II trial for hidradenitis suppurativa (HS), with the study set to begin in the second quarter of 2025. Topline data from this trial is anticipated in the second half of 2026, potentially ahead of the systemic sclerosis study results. Both studies will test dosages ranging from 100 mg to 300 mg.
Guggenheim analysts also noted that in January 2025, Novartis (SIX:NOVN) (NVS) highlighted ianalumab, a drug in its pipeline with similarities to Zura Bio’s treatments, which is undergoing trials for various indications, including HS and Ssc. The outcomes of these trials, expected in 2025 and 2027 respectively, are of interest to Guggenheim as they may have implications for Zura Bio’s programs.
The report further mentioned Zura Bio’s evaluation of other potential treatments. Although the company is considering different therapeutic applications for crebankitug (ZB-168), it is unlikely to pursue atopic dermatitis (AD) after a recent Phase IIa trial failure by another drug. For torudokimab (ZB-880), Zura Bio is awaiting external data from Phase II and Phase III trials on IL-33/ST2 in asthma and chronic obstructive pulmonary disease (COPD) before making strategic decisions.
Zura Bio’s financial position is solid, with approximately $177 million in cash, which is expected to fund operations through 2027. InvestingPro analysis shows a strong current ratio of 10.36, indicating robust short-term liquidity, though the company is rapidly burning through its cash reserves. The Buy rating and $15 price target have been maintained by Guggenheim, reflecting confidence in the company’s ongoing clinical programs and financial stability. According to InvestingPro data, analyst targets range from $5 to $26, suggesting significant potential upside from current levels, with Fair Value analysis indicating the stock may be undervalued. Subscribers to InvestingPro can access 8 additional key insights about ZURA’s financial health and market position.
In other recent news, Zura Bio announced its fourth-quarter earnings, maintaining its focus on advancing its product pipeline. Leerink Partners reiterated an Outperform rating for Zura Bio, setting a price target of $12.00. The company is preparing to initiate a Phase 2 trial for its lead drug candidate, tibulizumab, targeting hidradenitis suppurativa in 2025. Additionally, Zura Bio plans to release results from its ongoing TibuSURE trial for systemic sclerosis in 2026. Leerink Partners noted that the company’s strategy for another program, crebankitug, will be detailed in the second quarter of 2025. Piper Sandler, in its recent analysis, highlighted Zura Bio’s dual mechanism of action pipeline, which is expected to gain validation from indirect catalysts. These developments indicate potential expansion opportunities in treating high unmet need immune conditions. Piper Sandler’s report also mentioned that Zura Bio’s pipeline could be influenced by about ten indirect catalysts from competitors. The continued focus on clinical developments positions Zura Bio as a company to watch in the biotechnology sector.
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