H.C. Wainwright Reiterates Neutral Rating on Zura Bio Ltd. (ZURA)

H.C. Wainwright analyst Mitchell S. Kapoor reiterated a Neutral rating and $3.00 price target on Zura Bio Ltd. (NASDAQ: ZURA).

The analyst commented: "On Novartis' 2Q25 earnings call, management noted that it did not see compelling results for ianalumab (BAFF inhibitor) in hidradenitis suppurativa (HS). While the company expected to see activity in HS, Novartis chose not to advance the asset after the Phase 2 proof-of-concept study failed to meet the company's target criteria, despite demonstrating efficacy vs. placebo. In our view, this raises the risk profile of BAFF inhibitors, and has specific readthrough to Zura's tibulizumab (anti-BAFF x anti-IL-17A), which is composed of tabalumab (anti-BAFF) and Taltz (ixekizumab, anti-IL-17A). This development provides mounting evidence against BAFF inhibition's therapeutic utility in the inflammation & immunology (I&I) space. Specific to Zura, we are highly skeptical that the fusion of an IL-17A-only inhibitor with a BAFF inhibitor would be advantageous in HS, given the intensifying competition and high benchmark set by IL-17A/F dual inhibitors such as UCB's Bimzelx (bimekizumab) and MoonLake's sonelokimab. Contrary to Street commentary, we do believe that there is negative readthrough from the ianalumab setback in HS to the ultimate fate of tibulizumab in HS. Therefore, we reiterate our Neutral rating and 12-month price target of $3."

For an analyst ratings summary and ratings history on Zura Bio Ltd. click here. For more ratings news on Zura Bio Ltd. click here.

Shares of Zura Bio Ltd. closed at $1.96 yesterday.

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