Zenas BioPharma downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Zenas BioPharma (ZBIO) to Equal Weight from Overweight with a price target of $19, down from $37, after the company announced top-line results from the Phase 3 INDIGO study evaluating obexelimab in IgG4-RD. While INDIGO met its primary endpoint, demonstrating a 56% reduction in the risk of IgG4-RD flare vs. placebo, the results fell short of the benchmark set by Uplizna, which demonstrated an 87% reduction in IgG4-RD flare risk versus placebo, the analyst tells investors. Obexelimab likely has a place in IgG4-RD based on the trial results, but peak share may be lower than previously anticipated, the analyst added.