WALTHAM, MA—Leon O. Moulder Jr., Chief Executive Officer of Zenas BioPharma, Inc. (NASDAQ:ZBIO), recently purchased additional shares of the company, according to a recent SEC filing. Over two days, Moulder acquired a total of 10,000 shares of common stock, with a combined transaction value of $148,925.
The transactions occurred on November 18 and 19, with the shares purchased at weighted average prices ranging from $14.57 to $15.00 per share. As a result of these acquisitions, Moulder now directly owns 171,155 shares of Zenas BioPharma's common stock.
In addition to his direct holdings, Moulder is the Managing Member of Tellus BioVentures LLC, which holds an indirect interest in the company. Moulder serves as both the CEO and Chairman of the board at Zenas BioPharma, further solidifying his leadership role within the organization.
In other recent news, Zenas Biopharma has been making significant strides with its lead drug candidate, obexelimab. Citi, Morgan Stanley (NYSE:MS), Guggenheim, and Jefferies have all initiated coverage on the biotech firm, expressing optimism about obexelimab's potential. Citi and Guggenheim have set price targets at $27 and $45 respectively, citing the drug's potential to treat a range of diseases and its potential revenue generation.
Morgan Stanley and Jefferies have set their price targets at $40 and $35 respectively, highlighting obexelimab's promising mechanism of action and the upcoming Phase II and Phase III trial updates. The drug is currently being developed for multiple indications within the inflammation and immunology space, including IgG4-related disease, multiple sclerosis, and systemic lupus erythematosus.
The sales of similar drugs in the market, like Kesimpta and Ocrevus for MS, and Benlysta for SLE, indicate the substantial revenue potential for obexelimab. The drug's method of B-cell inhibition, perceived as safer than current therapies, and the convenience of being self-administered at home, may offer a competitive advantage. These are recent developments that investors should keep an eye on.
InvestingPro Insights
The recent insider buying by CEO Leon O. Moulder Jr. comes at a time when Zenas BioPharma's stock is trading near its 52-week low, according to InvestingPro data. This purchase may signal management's confidence in the company's future prospects, despite recent market challenges.
InvestingPro Tips highlight that Zenas BioPharma holds more cash than debt on its balance sheet, which could provide financial flexibility as the company navigates its growth phase. Additionally, analysts anticipate sales growth in the current year, potentially supporting the CEO's decision to increase his stake.
However, investors should note that the company is quickly burning through cash and is not expected to be profitable this year. The stock has taken a significant hit over the last week, with a 34.82% decline in price total return, and a 41.66% drop over the past month.
For a more comprehensive analysis, InvestingPro offers 12 additional tips for Zenas BioPharma, providing investors with a deeper understanding of the company's financial health and market position.
Zenas BioPharma, Inc. is a global biopharmaceutical company committed to becoming a leader in the development and commercialization of immune-based therapies for patients in need around the world. The company's recent stock performance and insider buying activity have drawn attention from investors and market analysts alike.
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