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

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ZBIO

Zenas BioPharma, Inc.

(NASDAQ:ZBIO)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
$26.00
▲(6.69% Upside)
The overall stock score for Zenas BioPharma is primarily impacted by its weak financial performance, characterized by declining revenues and significant cash flow challenges. While technical analysis shows positive momentum, the negative P/E ratio and lack of dividend yield weigh down the valuation score. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Strategic Partnerships
The license agreement with InnoCare enhances Zenas's product pipeline and market reach, particularly in the treatment of Multiple Sclerosis, strengthening its competitive position in the biopharmaceutical industry.
Funding and Cash Position
The $120M private placement financing improves Zenas's cash position, providing sufficient funds to support operations and capital expenditures into 2026, enhancing financial stability and operational flexibility.
Product Development
Initiating Phase 3 trials for orelabrutinib in Multiple Sclerosis demonstrates Zenas's commitment to advancing its pipeline, potentially leading to new marketable therapies and revenue streams.
Negative Factors
Revenue Decline
The severe revenue contraction indicates challenges in product sales and market penetration, which could hinder long-term growth and profitability if not addressed.
Cash Flow Challenges
Negative cash flow and increased cash burn highlight inefficiencies in operations, posing risks to financial health and necessitating strategic adjustments to improve cash generation.
Profitability Issues
Ongoing operating losses and negative profitability metrics suggest significant challenges in achieving sustainable financial performance, impacting long-term viability.

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

Zenas BioPharma, Inc. Business Overview & Revenue Model

Company DescriptionZenas BioPharma, Inc. (ZBIO) is a biopharmaceutical company focused on developing innovative therapies for patients with rare diseases and unmet medical needs. The company specializes in the discovery, development, and commercialization of biologic products that target specific disease pathways. ZBIO's core product offerings include novel therapeutics that aim to improve patient outcomes in areas such as immunology and oncology, leveraging advanced biotechnological techniques to create effective treatment options.
How the Company Makes MoneyZenas 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 facing severe financial challenges, with a significant revenue decline, persistent operating losses, and negative cash flow, indicating substantial operational inefficiency despite a strong equity recovery.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022
Income Statement
Total Revenue15.00M5.00M50.00M0.00
Gross Profit14.95M5.00M50.00M-78.00K
EBITDA-185.46M-163.75M-27.03M-75.12M
Net Income-176.97M-156.99M-37.12M-119.28M
Balance Sheet
Total Assets293.08M369.97M68.18M74.58M
Cash, Cash Equivalents and Short-Term Investments273.28M350.77M56.86M67.21M
Total Debt1.01M1.00M21.11M1.53M
Total Liabilities53.46M57.51M293.90M266.87M
Stockholders Equity239.63M312.46M-225.72M-192.29M
Cash Flow
Free Cash Flow-148.50M-119.81M-30.55M-67.85M
Operating Cash Flow-148.41M-119.67M-30.53M-65.65M
Investing Cash Flow-229.06M-30.55M-17.00K-2.20M
Financing Cash Flow237.65M412.96M20.12M59.39M

Zenas BioPharma, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.37
Price Trends
50DMA
20.45
Positive
100DMA
16.40
Positive
200DMA
12.45
Positive
Market Momentum
MACD
1.59
Positive
RSI
53.89
Neutral
STOCH
53.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBIO, the sentiment is Positive. The current price of 24.37 is above the 20-day moving average (MA) of 23.73, above the 50-day MA of 20.45, and above the 200-day MA of 12.45, indicating a bullish trend. The MACD of 1.59 indicates Positive momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 53.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZBIO.

Zenas BioPharma, Inc. Risk Analysis

Zenas BioPharma, Inc. disclosed 78 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
55
Neutral
$834.17M-36.50%30.95%-78.41%
53
Neutral
$892.84M-9.26-52.56%26.68%
52
Neutral
$1.10B-88.40%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
$849.23M-14.98-52.82%53.23%35.32%
51
Neutral
$993.21M1049.81%7.85%
47
Neutral
$817.02M-5.2210.85%-1.41%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZBIO
Zenas BioPharma, Inc.
25.01
4.61
22.60%
ABUS
Arbutus Biopharma
4.28
0.31
7.81%
RZLT
Rezolute
9.83
4.05
70.07%
URGN
Urogen Pharma
17.33
5.23
43.22%
PHAT
Phathom Pharmaceuticals
13.61
-2.44
-15.20%
VALN
Valneva
9.68
3.74
62.96%

Zenas BioPharma, Inc. Corporate Events

Business Operations and StrategyProduct-Related Announcements
Zenas BioPharma Secures Licensing Deal with InnoCare
Positive
Oct 8, 2025

On October 7, 2025, Zenas BioPharma entered into a license agreement with InnoCare Pharma, granting Zenas exclusive rights to develop and commercialize several small molecule compounds, including orelabrutinib, a BTK inhibitor for multiple sclerosis. This agreement positions Zenas to potentially transform the treatment landscape for progressive MS, with a Phase 3 trial for orelabrutinib already initiated. The deal also includes a $35 million upfront payment and potential milestone payments, reflecting Zenas’s strategic expansion in the autoimmune treatment market.

The most recent analyst rating on (ZBIO) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Zenas BioPharma, Inc. stock, see the ZBIO Stock Forecast page.

Private Placements and Financing
Zenas BioPharma Secures $300M Funding for Obexelimab
Positive
Sep 2, 2025

On September 2, 2025, Zenas BioPharma entered into a $300 million funding agreement with Royalty Pharma, granting them rights to revenue streams from the sales of obexelimab. This deal provides Zenas with financial support to advance obexelimab’s development and potential commercial launch, particularly for treating IgG4-Related Disease, and underscores the drug’s potential as a significant player in the autoimmune disease market.

The most recent analyst rating on (ZBIO) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Zenas BioPharma, Inc. stock, see the ZBIO Stock Forecast page.

Zenas BioPharma Faces Legal and Financial Challenges Amid Securities Class Action Lawsuit
Aug 13, 2025

Zenas BioPharma, Inc. faces significant business risks due to securities class action litigation, which can arise after fluctuations in their stock prices. In April 2025, a lawsuit was filed against the company and its executives, alleging violations of the Securities Act of 1933 related to their IPO. This litigation demands compensatory damages and legal fees, potentially diverting management’s focus and increasing operational costs. Furthermore, the situation could elevate the cost of liability insurance for directors and officers, impacting the company’s financial health and reliance on its balance sheet for covering legal expenses.

Zenas BioPharma Reports Q2 2025 Financial Results
Aug 13, 2025

Zenas BioPharma, Inc. is a clinical-stage global biopharmaceutical company focused on developing and commercializing transformative therapies for autoimmune diseases, with a lead product candidate, obexelimab, designed to inhibit B cell activity without depleting them.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 17, 2025