Yigal Nochomovitz, an analyst from Citi, maintained the Buy rating on Zenas BioPharma, Inc.. The associated price target remains the same with $46.00.
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Yigal Nochomovitz has given his Buy rating due to a combination of factors related to Zenas BioPharma, Inc.’s promising developments in their BTK inhibitor, orelabrutinib. The recent positive Phase 2 data in systemic lupus erythematosus (SLE) for orelabrutinib contrasts favorably against Sanofi’s Phase 3 trial failure with tolebrutinib, particularly due to orelabrutinib’s significantly higher central nervous system (CNS) concentration, which is about 17 times greater than that of tolebrutinib. This higher concentration is expected to enhance its efficacy, as reflected in the CNS concentration-to-IC90 ratio.
Moreover, ZBIO’s Phase 3 trial design for orelabrutinib in primary progressive multiple sclerosis (PPMS) aligns with successful strategies used by Roche, focusing on a 12-week composite confirmed disability progression endpoint. This design choice, along with the requirement for documented recent progression, potentially increases the trial’s likelihood of success compared to Sanofi’s approach. The expected share price return of 41.1% further supports the Buy rating, indicating significant upside potential for investors.
Nochomovitz covers the Healthcare sector, focusing on stocks such as Neurocrine, Zymeworks, and Arcus Biosciences. According to TipRanks, Nochomovitz has an average return of 5.3% and a 40.85% success rate on recommended stocks.
In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $44.00 price target.