Zura Bio, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Mitchell Kapoor from H.C. Wainwright reiterated a Hold rating on the stock and has a $3.00 price target.
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Mitchell Kapoor has given his Hold rating due to a combination of factors impacting Zura Bio’s prospects. The recent failure of a competitor’s BAFF inhibitor in a Phase 2 trial for hidradenitis suppurativa (HS) has cast doubt on the efficacy of BAFF inhibition in the inflammation and immunology space. This development is particularly concerning for Zura Bio’s tibulizumab, which combines anti-BAFF and anti-IL-17A properties, as the competitive landscape is increasingly dominated by more effective dual IL-17A/F inhibitors.
Furthermore, the history of tibulizumab’s parent molecules raises additional concerns. Eli Lilly, which originally developed and later discontinued the BAFF inhibitor tabalumab due to lack of efficacy, previously held majority rights to tibulizumab. The decision to in-license tibulizumab from Eli Lilly after Phase 1 development raises questions about the data’s strength. Given these factors, along with the high benchmarks set by dual IL-17A/F inhibitors, Kapoor maintains a cautious stance with a Neutral rating and a 12-month price target of $3.