Surrozen’s Strategic Focus on Wnt Pathway and Promising Pipeline Earns Buy Rating

H.C. Wainwright analyst Matthew Caufield reiterated a Buy rating on Surrozen (SRZN – Research Report) today and set a price target of $32.00.

Matthew Caufield has given his Buy rating due to a combination of factors related to Surrozen’s strategic focus and promising pipeline developments. The company is concentrating its efforts on the modulation of the Wnt pathway, which is crucial for therapeutic tissue regeneration, particularly in degenerative ophthalmic diseases such as age-related macular degeneration (AMD) and diabetic retinopathy. This strategic focus follows the discontinuation of their lead candidate SZN-043 for severe alcohol-associated hepatitis, which did not show sufficient clinical benefit. However, this decision does not indicate broader issues with their approach to tissue-specific antibody development.
Surrozen’s partnership with Boehringer Ingelheim for the development of SZN-413 in retinal vascular-associated diseases provides significant validation for their Wnt modulation strategy. The preclinical pipeline, including candidates like SZN-8141 and SZN-8143, shows potential for addressing retinal diseases by stimulating Wnt signaling and reducing the burden of anti-VEGF injections. The strategic validation of the Wnt pathway by major acquisitions in the industry further supports the potential of Surrozen’s approach. Caufield maintains a focus on updates regarding SZN-8141 and SZN-8143, with an eye on their IND timing in 2026, reinforcing his confidence in Surrozen’s targeted Wnt signaling strategy.