Zenas BioPharma, Inc. (ZBIO) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: N/A
• Average Volume (3M): 359.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 130
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.90
• Shares Outstanding: 42,110,313
• 10 Day Avg. Volume: 522,701
• 30 Day Avg. Volume: 359,087
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.12
• Enterprise Value/Revenue: 8.89
• Enterprise Value/Gross Profit: 8.92
• Enterprise Value/Ebitda: -0.72
• 1Y Price Target: $35.33
• Price Target Upside: 44.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• 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. Business Overview & Revenue Model

Company Description

Zenas 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 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 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

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	15.00M	5.00M	50.00M	0.00
Gross Profit	14.95M	5.00M	50.00M	-78.00K
EBITDA	-185.46M	-163.75M	-27.03M	-75.12M
Net Income	-176.97M	-156.99M	-37.12M	-119.28M
Balance Sheet
Total Assets	293.08M	369.97M	68.18M	74.58M
Cash, Cash Equivalents and Short-Term Investments	273.28M	350.77M	56.86M	67.21M
Total Debt	1.01M	1.00M	21.11M	1.53M
Total Liabilities	53.46M	57.51M	293.90M	266.87M
Stockholders Equity	239.63M	312.46M	-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 Flow	237.65M	412.96M	20.12M	59.39M

Zenas BioPharma, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VALN	55 Neutral	$834.17M	―	-36.50%	―	30.95%	-78.41%
RZLT	53 Neutral	$892.84M	-9.26	-52.56%	―	―	26.68%
ZBIO	52 Neutral	$1.10B	―	-88.40%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ABUS	51 Neutral	$849.23M	-14.98	-52.82%	―	53.23%	35.32%
PHAT	51 Neutral	$993.21M	―	―	―	1049.81%	7.85%
URGN	47 Neutral	$817.02M	-5.22	―	―	10.85%	-1.41%

Zenas BioPharma, Inc. Corporate Events

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.

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.

Zenas BioPharma Secures $300M Funding for Obexelimab

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

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

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.