BUZZ-Zenas BioPharma drops on convertible, equity offerings

Reuters03-27
BUZZ-Zenas BioPharma drops on convertible, equity offerings

** Zenas BioPharma ZBIO.O shares down 9.8% post-market to $20 after capital raise news

** Autoimmune disease specialist commences public offerings of 6-yr convertible bonds and common stock without disclosing deal sizes

** Says intends to use net proceeds from both offerings, which are not conditioned upon each other, to support planned U.S. commercial launch of obexelimab, if approved, and advance its development pipeline

** Jefferies, Evercore, Citigroup and Guggenheim Secs joint bookrunners

** On Jan 5, ZBIO shares plunged 52% after obexelimab cut the risk of flare-ups in patients with immunoglobulin G4-related disease, but showed weaker-than-expected efficacy in a late-stage study

** ZBIO stock closed down 0.1% at $22.16 on Thurs. Stock off 39% YTD after surging more than four-fold in 2025

** Waltham, Massachusetts-based co has ~57.4 mln shares outstanding for ~$1.3 bln market cap

** Avg rating of 8 analysts is "strong buy"; median PT $44.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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