Leerink Partners reiterates Outperform rating on Zura Bio stock

Investing.com - Leerink Partners has reiterated an Outperform rating and $11.00 price target on Zura Bio Ltd. (NASDAQ:ZURA), currently trading at $1.62, following the company’s second-quarter 2025 earnings report and pipeline update. The stock, which InvestingPro data shows is trading below its Fair Value, has analyst targets ranging from $3 to $26.

The research firm noted that Phase 2 studies for Zura Bio’s lead asset tibulizumab, an IL17A/BAFF bispecific, remain on track in systemic sclerosis and hidradenitis suppurativa (HS) with data expected in the second half of 2026.

Leerink Partners views Novartis’ mid-July update for ianalumab (anti-BAFF-R) in HS as "an important positive clearing event" for Zura Bio, as it demonstrated efficacy versus placebo and removes concerns that BAFF targeting in HS might be ineffective.

According to Leerink, this development supports Zura Bio’s hypothesis for tibulizumab in HS and provides a level of derisking based on external data.

Zura Bio management has indicated they plan to provide an update in the fourth quarter on Phase 2 enrollment progress and potential paths forward for other assets in their pipeline.

In other recent news, Zura Bio Ltd. has initiated a global Phase 2 clinical trial called TibuSHIELD to evaluate the safety and efficacy of tibulizumab for treating moderate to severe hidradenitis suppurativa. This trial is expected to enroll about 180 participants across various regions, including the United States, Canada, and Europe, with results anticipated in the third quarter of 2026. Additionally, Zura Bio announced the appointment of Eric Hyllengren as the new Chief Financial Officer, effective July 7, 2025, succeeding Verender Badial.

In corporate governance developments, Zura Bio shareholders approved the election of nine directors and ratified WithumSmith+Brown, PC as the independent auditor for the fiscal year ending December 31, 2025. Meanwhile, H.C. Wainwright has reiterated its Neutral rating on Zura Bio’s stock, maintaining a price target of $3.00, due to concerns surrounding the BAFF inhibitor ianalumab after Novartis decided not to advance it in a related study. These developments come as Zura Bio continues to focus on advancing its clinical programs and strengthening its leadership team.

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