Zura Bio initiated with a Buy at Guggenheim

Guggenheim initiated coverage of Zura Bio with a Buy rating and $20 price target. The firm has a positive view of Zura’s differentiated IL-17A x BAFF inhibitor ZB-106, which is on track to begin Phase II studies in Systemic sclerosis and hidradenitis suppurativa in 2H24, the analyst tells investors in a research note. Guggenheim estimates roughly $550M in risk-adjusted global peak sales for ZB-106 in SSc and about $475M in risk-adjusted global peak sales for ZB-106 in HS, with additional upside potential driven by expansion into other indications in which B and T cells drive pathology and success of other pipeline assets including the IL-7Ralpha and IL-33 programs.