H.C. Wainwright reiterates Neutral rating on Zura Bio stock amid BAFF inhibitor concerns

Published 18/07/2025, 12:46
H.C. Wainwright reiterates Neutral rating on Zura Bio stock amid BAFF inhibitor concerns

Investing.com - H.C. Wainwright has reiterated its Neutral rating and $3.00 price target on Zura Bio Ltd. (NASDAQ:ZURA) following Novartis (SIX:NOVN)’ decision not to advance its BAFF inhibitor ianalumab in hidradenitis suppurativa (HS). The stock has shown remarkable momentum, surging nearly 50% in the past week, though InvestingPro analysis suggests the current price of $1.96 is near Fair Value.

Novartis reported during its second-quarter 2025 earnings call that ianalumab failed to meet target criteria in a Phase 2 proof-of-concept study for HS, despite showing some efficacy versus placebo.

H.C. Wainwright views this development as raising the risk profile for BAFF inhibitors broadly, with specific implications for Zura’s tibulizumab, a fusion of tabalumab (anti-BAFF) and Taltz (ixekizumab, anti-IL-17A).

The research firm expressed skepticism about combining an IL-17A-only inhibitor with a BAFF inhibitor for HS treatment, particularly given increasing competition from IL-17A/F dual inhibitors like UCB’s Bimzelx and MoonLake’s sonelokimab.

H.C. Wainwright believes the ianalumab setback has negative implications for tibulizumab’s prospects in HS, contrary to some market commentary, supporting its maintained Neutral stance on Zura Bio.

In other recent news, Zura Bio Limited announced a leadership change with Eric Hyllengren set to take over as Chief Financial Officer on July 7, 2025. Hyllengren, who has over 20 years of experience in financial leadership within life sciences and biotechnology, will replace Verender Badial, who will remain with the company through July 31 to assist in the transition. Additionally, Zura Bio’s shareholders approved the election of nine directors to its board and ratified WithumSmith+Brown, PC as the independent auditor for the fiscal year ending December 31, 2025. This decision was made during the company’s Annual General Meeting, signaling strong shareholder support for the company’s leadership. Furthermore, Zura Bio has initiated a global Phase 2 clinical trial named TibuSHIELD to evaluate the safety and efficacy of tibulizumab for treating hidradenitis suppurativa, a chronic skin condition. The trial will involve approximately 180 participants across the United States, Canada, and Europe, with results expected in the third quarter of 2026. The investigational drug tibulizumab targets pathways involved in the inflammatory process, and the trial represents an important step in addressing unmet needs for patients with severe inflammatory diseases. These developments reflect Zura Bio’s ongoing commitment to advancing therapeutic options for autoimmune and inflammatory diseases.

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