Zenas BioPharma, Inc. (ZBIO) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: N/A
• Average Volume (3M): 357.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• 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: 460,646
• 30 Day Avg. Volume: 357,632
• 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: 0.28
• Enterprise Value/Revenue: 21.53
• Enterprise Value/Gross Profit: -8.49
• Enterprise Value/Ebitda: -1.30
• 1Y Price Target: $45.40
• Price Target Upside: 6.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -4.04
• Revenue Forecast (FY): $41.67M

• Rating: 61 Neutral
• Price Target: $42.00 ▼(-1.89% Downside)

Zenas BioPharma's overall stock score is primarily influenced by its strong technical momentum and positive corporate events, which are offset by poor financial performance and valuation concerns. The company's recent strategic moves in the autoimmune market provide a promising outlook, but significant financial challenges remain.

Positive Factors

Strategic Licensing Deal

The licensing deal with InnoCare provides Zenas exclusive rights to develop key compounds, enhancing its market position in autoimmune treatments.

Positive Phase 2 Trial Results

Successful Phase 2 trial results for obexelimab support its potential as a significant therapy for autoimmune diseases, boosting future prospects.

Strong Equity Recovery

The strong recovery in equity indicates improved financial stability, providing a solid foundation for future growth and investment.

Negative Factors

Substantial Revenue Decline

The severe contraction in revenue highlights significant challenges in maintaining sales momentum, impacting long-term financial health.

Negative Cash Flow

Persistent negative cash flow indicates inefficiency in operations, requiring improvements to ensure sustainable cash generation and financial stability.

Ongoing Profitability Challenges

Continued operating losses and negative income highlight the need for strategic changes to achieve profitability and long-term viability.

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: Positive
• Last Price: 42.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 42.81 is above the 20-day moving average (MA) of 38.20, above the 50-day MA of 33.84, and above the 200-day MA of 18.39, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 61.77 is Neutral, neither overbought nor oversold. The STOCH value of 79.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZBIO.

Zenas BioPharma, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAT	67 Neutral	$1.27B	-4.52	―	―	460.30%	33.03%
ZBIO	61 Neutral	$2.27B	-9.45	-68.33%	―	―	-38.04%
RZLT	53 Neutral	$190.09M	―	-59.23%	―	―	26.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
URGN	50 Neutral	$1.10B	-6.76	―	―	8.00%	-10.15%
ABUS	49 Neutral	$907.77M	-21.10	-45.88%	―	116.64%	47.93%
VALN	48 Neutral	$746.84M	-6.10	-54.42%	―	14.86%	-1440.45%

Zenas BioPharma, Inc. Corporate Events

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).

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.

Zenas BioPharma Secures Licensing Deal with InnoCare

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.