On Monday, H.C. Wainwright initiated coverage on NASDAQ:ZBIO, Zenas Biopharma, with a Buy rating and a price target set at $30.00. The firm highlighted the potential of Zenas Biopharma's lead autoimmune therapy, obexelimab, praising its innovative approach to treating chronic autoimmune diseases.
Obexelimab, a bifunctional monoclonal antibody, is designed to bind to CD19 and Fc gamma receptor IIb, FcγRIIb, which are broadly present on B cell lineage. The therapy aims to inhibit cellular activity associated with autoimmune diseases without depleting B cells.
It is a self-administered subcutaneous injection that targets the pathogenic B cell lineage. This treatment has implications for a range of conditions, including immunoglobulin G4-related disease (IgG4-RD), relapsing multiple sclerosis (RMS), systemic lupus erythematosus (SLE), and warm autoimmune hemolytic anemia (wAIHA).
The analyst pointed out that existing B cell therapies could be limited due to incomplete B cell lineage coverage and associated cytotoxicity. In contrast, obexelimab offers a differentiated approach by targeting B cells more broadly, potentially maintaining low B cell numbers and activity without long-term depletion.
H.C. Wainwright's coverage note also mentioned upcoming catalysts for Zenas Biopharma. These include the expected topline results from the Phase 3 INDIGO trial for IgG4-RD at the end of 2025, the primary endpoint 12-week data from the Phase 2 MoonStone trial for RMS in the third quarter of 2025, and the primary endpoint 24-week data from the Phase 2 SunStone trial for SLE in the first half of 2026.
The firm believes that obexelimab could represent a significant advancement in autoimmune disease treatment, positioning it as a potential cornerstone of Zenas Biopharma's immunology pipeline. The Buy rating and $30 price target reflect the firm's confidence in the therapy's differentiated mechanism and its therapeutic potential.
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