Zenas BioPharma, Inc. (ZBIO) AI Stock Analysis

• Market Cap: $863.16M
• Dividend Yield: N/A
• Average Volume (3M): 738.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: N/A
• EPS Growth: -38.04%
• Country: US
• Employees: 130
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.90
• Shares Outstanding: 53,679,165
• 10 Day Avg. Volume: 1,531,917
• 30 Day Avg. Volume: 738,316
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 68.44
• P/FCF Ratio: -2.86
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 21.53
• Enterprise Value/Gross Profit: -8.49
• Enterprise Value/Ebitda: -1.30
• 1Y Price Target: $41.20
• Price Target Upside: 108.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -4.45
• Revenue Forecast (FY): $36.26M

• Rating: 47 Neutral
• Price Target: $19.50 ▼(-1.42% Downside)

The score is held down primarily by weak financial performance (large losses and heavy cash burn) and bearish technicals (price below key moving averages with negative MACD). Offsetting these risks, corporate events are a major positive given the strong Phase 3 results and stated regulatory submission plans, while valuation is difficult to assess due to a negative P/E.

Positive Factors

Regulatory path from Phase 3 success

Positive INDIGO Phase 3 data plus planned BLA/EMA submissions create a clear regulatory pathway for obexelimab. Meeting primary and key secondary endpoints with favorable safety materially increases the probability of approval and a sustainable commercial launch, underpinning long-term revenue potential.

Pipeline expansion via licensing deal

The InnoCare agreement adds orelabrutinib and other assets plus $35M upfront, diversifying Zenas's autoimmune portfolio and funding base. Access to an additional Phase 3 asset reduces single-product concentration and strengthens long-term growth optionality and partnership leverage.

Low leverage and equity cushion

Minimal debt and a meaningful equity base reduce near-term solvency risk and extend operational runway versus highly leveraged peers. This balance-sheet flexibility supports continued clinical development and potential commercialization investments without immediate refinancing pressure.

Negative Factors

High and rising cash burn

Sustained negative operating and free cash flow at large magnitudes signal ongoing funding dependence. Persistent cash burn increases dilution or partnership necessity, constraining strategic choices and elevating execution risk until meaningful revenue or cost reduction occurs.

Large ongoing losses vs low revenue

A massive net loss relative to a tiny, volatile revenue base highlights a deep structural gap between spending and commercial receipts. Without a successful product launch or sharp cost realignment, profitability remains distant and cash runway will rely on external financing.

Historical equity erosion and funding risk

Prior negative equity and recent negative returns on equity reflect past capital erosion and weak shareholder returns. Even with current equity, the track record implies continued reliance on external capital and potential dilution risk until the company demonstrates consistent positive returns.

Zenas BioPharma, Inc. Business Overview & Revenue Model

Company Description

Zenas 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 Money

Zenas BioPharma generates revenue primarily through the development and commercialization of its proprietary therapies. The company earns money through multiple revenue streams, including product sales once therapies are approved and launched in the market, milestone payments from partnerships with larger pharmaceutical companies, and potential royalties on product sales from licensed technologies. Significant partnerships and collaborations with other biopharmaceutical firms and research institutions also contribute to its earnings by providing funding for research and development activities, as well as enhancing its market reach and distribution capabilities.

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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	30.00M	5.00M	50.00M	0.00
Gross Profit	-76.05M	-134.14M	50.00M	-61.69M
EBITDA	-494.94M	-163.75M	-27.03M	-75.12M
Net Income	-482.80M	-156.99M	-37.12M	-119.28M
Balance Sheet
Total Assets	322.02M	369.97M	68.18M	74.58M
Cash, Cash Equivalents and Short-Term Investments	290.88M	350.77M	56.86M	67.21M
Total Debt	798.00K	1.00M	21.11M	1.53M
Total Liabilities	125.59M	57.51M	293.90M	266.87M
Stockholders Equity	196.43M	312.46M	-225.72M	-192.29M
Cash Flow
Free Cash Flow	-399.38M	-119.81M	-30.55M	-67.85M
Operating Cash Flow	-399.20M	-119.67M	-30.53M	-65.65M
Investing Cash Flow	-244.43M	-30.55M	-17.00K	-2.20M
Financing Cash Flow	297.81M	412.96M	20.12M	59.39M

Zenas BioPharma, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBIO, the sentiment is Negative. The current price of 19.78 is below the 20-day moving average (MA) of 31.75, below the 50-day MA of 34.16, and above the 200-day MA of 19.55, indicating a neutral trend. The MACD of -5.11 indicates Positive momentum. The RSI at 34.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBIO.

Zenas BioPharma, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAT	57 Neutral	$1.18B	-3.79	―	―	460.30%	33.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
URGN	50 Neutral	$994.69M	-6.20	―	―	8.00%	-10.15%
ABUS	49 Neutral	$888.54M	-20.29	-45.88%	―	116.64%	47.93%
VALN	48 Neutral	$853.86M	-7.12	-54.42%	―	14.86%	-1440.45%
ZBIO	47 Neutral	$863.16M	-4.37	-68.33%	―	―	-38.04%
RZLT	44 Neutral	$243.87M	-2.70	-59.23%	―	―	26.65%

Zenas BioPharma, Inc. Corporate Events

Zenas BioPharma Announces Positive Phase 3 Obexelimab Results

On January 5, 2026, Zenas BioPharma reported positive top-line data from its global, registration-directed Phase 3 INDIGO trial of obexelimab in immunoglobulin G4-related disease (IgG4-RD), in which 194 patients were randomized 1:1 to obexelimab or placebo over 52 weeks. Obexelimab achieved the primary endpoint with a 56% reduction in the risk of IgG4-RD flare requiring rescue therapy versus placebo and showed highly statistically significant benefit across all four key secondary endpoints, while demonstrating a favorable safety profile with lower rates of serious adverse events and infections than placebo and no new safety signals. Building on these results and prior positive Phase 2 MoonStone data in relapsing multiple sclerosis, Zenas plans to submit a Biologics License Application to the U.S. FDA in the second quarter of 2026 and a Marketing Authorization Application to the EMA in the second half of 2026 for obexelimab in IgG4-RD, positioning the drug as a potential first-line, self-administered B cell–inhibiting therapy in a disease with significant unmet need and reinforcing its status as a potential franchise asset underpinning Zenas’ broader autoimmune pipeline and partnership with Bristol Myers Squibb in key Asia-Pacific markets.

The most recent analyst rating on (ZBIO) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Zenas BioPharma, Inc. stock, see the ZBIO Stock Forecast page.

Zenas BioPharma Approves 2026 Inducement Plan

On December 10, 2025, Zenas BioPharma, Inc. announced the approval of its 2026 Inducement Plan, which allows the company to grant up to 1,000,000 shares of common stock as non-statutory stock options, stock appreciation rights, restricted stock units, and other stock-based awards. This plan is designed to attract new employees or rehire former employees after a break in employment, without requiring stockholder approval as per Nasdaq Listing Rule 5635(c)(4).

The most recent analyst rating on (ZBIO) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Zenas BioPharma, Inc. stock, see the ZBIO Stock Forecast page.

Zenas BioPharma Reports Positive Phase 2 Trial Results

On October 27, 2025, Zenas BioPharma announced positive results from its Phase 2 MoonStone trial of obexelimab in relapsing multiple sclerosis (RMS). The trial demonstrated a 95% relative reduction in new gadolinium-enhancing T1 lesions compared to placebo, indicating a strong inhibitory mechanism of obexelimab. This outcome supports its potential as a significant therapy for autoimmune diseases. The company plans to report further data in early 2026, which could impact future development decisions for obexelimab in RMS.

The most recent analyst rating on (ZBIO) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Zenas BioPharma, Inc. stock, see the ZBIO Stock Forecast page.