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Zenas BioPharma, Inc. (ZBIO)
NASDAQ:ZBIO
US Market

Zenas BioPharma, Inc. (ZBIO) AI Stock Analysis

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ZB

Zenas BioPharma, Inc.

(NASDAQ:ZBIO)

38Underperform
Zenas BioPharma faces significant challenges with declining revenue, persistent operating losses, and substantial cash flow issues, resulting in a low financial performance score. The technical analysis indicates a bearish trend, and the negative P/E ratio underscores valuation concerns. The absence of earnings call and corporate events data limits further assessment, but the current data suggests a cautious outlook.
Positive Factors
Clinical Progress
Encouraging Phase 2 trial results for wAIHA demonstrate obexelimab's potential, with over 60% of patients achieving a significant hemoglobin increase and no major safety events.
Innovative Treatment
Obexelimab offers a novel approach by targeting CD19 and FcγRIIb, providing a reversible inhibitory effect instead of depleting B cells, which is advantageous for managing autoimmune diseases.
Market Expansion
Zenas' licensing agreement with Bristol-Myers Squibb for obexelimab in the Asian BMS territory underscores the growth potential of its autoimmune platform.
Negative Factors
Competitive Pressure
ZBIO shares are under pressure due to investor worries about competition for obexelimab in the IgG4-RD market and the absence of immediate data catalysts.
Stock Performance Concerns
ZBIO's stock has struggled since its IPO, reflecting a disconnect from the company's fundamental value.

Zenas BioPharma, Inc. (ZBIO) vs. S&P 500 (SPY)

Zenas BioPharma, Inc. Business Overview & Revenue Model

Company DescriptionZenas BioPharma, Inc., a clinical-stage biopharmaceutical company, engages in the development and commercialization of transformative immunology-based therapies. Its lead product candidate is obexelimab, a bifunctional monoclonal antibody for various indications, including immunoglobulin G4-related disease, multiple sclerosis, systemic lupus erythematosus, and warm autoimmune hemolytic anemia. The company also develops ZB002, an anti-TNFa monoclonal antibody; ZB004, a cytotoxic T-lymphocyte-associated antigen 4-immunoglobulin fusion; ZB001, an anti-insulin-like growth factor-1 receptor monoclonal antibody; and ZB005, an anti-active complement component 1s monoclonal antibody. Zenas BioPharma, Inc. was formerly known as Zenas BioPharma (Cayman) Limited and changed its name to Zenas BioPharma, Inc. in August 2023. The company was incorporated in 2019 and is based in Waltham, Massachusetts.
How the Company Makes MoneyZenas BioPharma, Inc. generates revenue through the development and commercialization of its biologic therapies. The company earns money primarily through the sale of its pharmaceutical products once they receive regulatory approval and are brought to market. Additional revenue streams may include partnerships and collaborations with other pharmaceutical companies, which can provide funding through upfront payments, milestone payments, and royalties on sales. Strategic partnerships can also enhance product development efficiency and expand market reach, contributing to the company's financial growth.

Zenas BioPharma, Inc. Financial Statement Overview

Summary
Zenas BioPharma is experiencing substantial revenue decline and persistent losses, with a strong equity recovery providing some balance sheet stability. Cash flow challenges, driven by significant cash burn, underscore the need for operational improvements. The company must address its revenue and cash flow issues to ensure long-term sustainability.
Income Statement
30
Negative
Zenas BioPharma has shown a significant decline in revenue from $50 million in 2023 to $5 million in 2024, indicating a severe contraction. The gross profit margin remains high due to zero cost of goods sold, yet the company faces substantial operating losses with negative EBIT and net income, highlighting ongoing profitability challenges.
Balance Sheet
40
Negative
The company has a strong equity position with a debt-to-equity ratio of only 0.003, suggesting low financial leverage. However, the negative equity in previous years indicates past difficulties, although recent improvements in stockholder's equity to $312 million show significant recovery. The equity ratio of approximately 84% is a positive indicator of financial stability.
Cash Flow
35
Negative
Zenas BioPharma's free cash flow remains negative, with a decline in operating cash flow from -$30 million to -$120 million. While financing activities have injected significant cash, the operational cash burn is a concern. The operating cash flow to net income ratio is negative, reflecting inefficiency in converting income into cash.
Breakdown
Dec 2024Dec 2023Dec 2022
Income StatementTotal Revenue
5.00M50.00M0.00
Gross Profit
5.00M50.00M0.00
EBIT
-163.89M-37.15M-76.20M
EBITDA
-163.89M-27.03M-75.12M
Net Income Common Stockholders
-156.13M-37.12M-119.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
350.77M56.86M67.21M
Total Assets
369.97M68.18M74.58M
Total Debt
1.00M21.11M1.53M
Net Debt
-318.74M-35.74M-65.68M
Total Liabilities
57.51M293.90M266.87M
Stockholders Equity
312.46M-225.72M-192.29M
Cash FlowFree Cash Flow
-119.81M-30.55M-67.85M
Operating Cash Flow
-119.67M-30.53M-65.65M
Investing Cash Flow
-30.55M-17.00K-2.20M
Financing Cash Flow
412.96M20.12M59.39M

Zenas BioPharma, Inc. Risk Analysis

Zenas BioPharma, Inc. disclosed 79 risk factors in its most recent earnings report. Zenas BioPharma, Inc. reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Zenas BioPharma, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$424.25M-19.16%23.29%-309.12%
61
Neutral
$474.91M-100.88%-77.06%-705.82%
51
Neutral
$5.35B3.41-40.48%2.89%17.92%2.25%
45
Neutral
$357.65M369.09%-60.19%56.60%
44
Neutral
$387.59M-24.68%
40
Underperform
$432.78M-28.99%74.59%
38
Underperform
$418.75M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZBIO
Zenas BioPharma, Inc.
9.95
-8.02
-44.63%
CKPT
Checkpoint Therapeutics
4.11
2.67
185.42%
ETON
Eton Pharmaceuticals
15.98
12.46
353.98%
TRML
Tourmaline Bio
16.85
1.35
8.71%
AMLX
Amylyx Pharmaceuticals Inc
5.01
3.11
163.68%
RAPP
Rapport Therapeutics, Inc.
11.38
-14.81
-56.55%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.