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On Tuesday, Leerink Partners maintained their positive stance on Zura Bio Ltd. (NASDAQ: ZURA) shares, reiterating an Outperform rating and a price target of $12.00. According to InvestingPro data, analyst targets for the stock range from $5.00 to $26.00, with the current share price at $1.57 suggesting significant potential upside based on these estimates. Zura Bio recently announced its fourth-quarter earnings and provided updates on its product pipeline, which did not include any significant changes.
Zura Bio is gearing up to begin a Phase 2 trial for its lead drug candidate, tibulizumab, in patients with hidradenitis suppurativa (HS) in the second quarter of 2025. The company has secured an active Investigational New Drug (IND) application for this indication. With a strong current ratio of 10.36 and more cash than debt on its balance sheet, the company appears well-positioned to fund its clinical programs, though InvestingPro analysis indicates rapid cash burn remains a consideration. Tibulizumab, an IL17A/BAFF bispecific antibody, is also being tested in the TibuSURE trial for systemic sclerosis (SSc), another serious autoimmune condition.
The results from both Phase 2 trials are anticipated to be released in 2026. Leerink Partners highlighted that Zura Bio’s management also confirmed plans to communicate their strategy for the development of another program, crebankitug, which targets the IL-7Rα receptor. This update is expected to be shared within the second quarter of 2025.
Leerink Partners pointed out that a key event to watch in the near term is the Phase 2 data release for Novartis (SIX:NOVN)’ ianalumab, an anti-BAFF-R antibody, expected in the second quarter of 2025. Although Novartis is not rated by Leerink, the firm suggests that positive results could lend support to Zura Bio’s approach in treating HS.
In their statement, Leerink Partners said, "Bottom Line: ZURA reported 4Q earnings and provided a pipeline update with no notable updates. [...] Reiterate OP." This reaffirms their optimism about the stock’s potential performance based on the company’s ongoing clinical developments and forthcoming trial data. While the stock has experienced a significant 65% decline over the past six months, InvestingPro analysis suggests the company is currently undervalued. Subscribers can access additional insights, including 7 more ProTips and comprehensive financial health metrics, to make more informed investment decisions.
In other recent news, Piper Sandler, a prominent investment bank, has provided an update on potential catalysts for biotechnology companies looking into 2025. Analyst Yasmeen Rahimi highlighted that Immunovant (NASDAQ:IMVT), Praxis Precision Medicines, and Prothena Corporation are set to have significant data catalysts within the next year. The report from Piper Sandler also identifies GPCR Therapeutics as having numerous indirect obesity catalysts, particularly focusing on GSBR-1290. Additionally, NAMS has indirect catalysts related to Lp(a) that might reduce major adverse cardiac events, potentially benefiting the risk profile of obicetrapib’s Phase 3 PREVAIL CVOT. The analysis further mentions relaxin-related treatments with upcoming catalysts that could enhance confidence in TECX’s TX45. ZURA’s dual mechanism of action pipeline is expected to receive validation from competitors’ catalysts, broadening opportunities in immune conditions. Piper Sandler has also noted six stocks with de-risked Phase 3 readouts or interim analyses expected in 2025, including Immunovant, Praxis Precision Medicines, and Prothena Corporation. Moreover, the firm outlined companies with anticipated Phase 2b readouts in 2025, such as Praxis Precision Medicines and Prothena Corporation.
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