Why Is ZBIO Stock Falling Pre-Market Today?

• Zenas stated that the reduction in the risk flares for its drug candidate obexelimab was at 56%, while rival Amgen’s Uplizna delivered an 87% reduction.
• At 27%, obexelimab’s flare rate was also higher than CEO Lonnie Moulder’s expectations, who previously said that it would be at 10%.
• However, Citi stated in a recent note that it remains confident that obexelimab will be approved and recommended investors to look for buying opportunities.

Zenas BioPharma Inc. (ZBIO) shares fell nearly 7% in Tuesday’s pre-market session, after declining by around 52% in Monday’s regular trade.

The fall in Zenas’ shares comes after the company announced that a Phase 3 Indigo study of its autoimmune disease candidate, obexelimab, met its primary endpoint.

However, the results fell short of Zenas CEO Lonnie Moulder’s own expectations, according to a report by Fierce Biotech citing Moulder’s comments at a Jefferies event in November 2025. Moulder had said that the flare rate for obexelimab would be closer to 10%, while the company’s head of R&D, Lisa von Moltke, told investors that the flare rate was at 27%, according to the report.

Zenas stated that it expects to submit a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) in the second quarter of 2026. The company stated that its treatment was well-tolerated and that no new safety signals were observed.

Analyst Updates

According to TheFly, analysts at Citi called the pullback on the results of the Phase 3 trials of Indigo an “overreaction.” The firm stated that the selloff has dragged the ZBIO stock below its “ultra-bear case” scenario of $18 per share.

Citi stated in its note that it remains confident that obexelimab will be approved and recommended investors to look for buying opportunities. However, the firm trimmed its price target for the ZBIO stock to $43 from $46, while maintaining a ‘Buy’ rating.

Morgan Stanley analysts downgraded Zenas to ‘Equal Weight’ from ‘Overweight’, while lowering the price target to $19 from $37. The firm stated that the results from Zenas’ Phase 3 Indigo trials were short of the benchmark set by Amgen Inc.’s (AMGN) Uplizna.

Amgen announced in April 2025 that Uplizna was approved by the FDA as a treatment for Immunoglobulin G4-Related Disease (IgG4-RD). The company stated that Uplizna delivered an 87% reduction in the risk of flares compared to a placebo.

Zenas stated that its treatment delivered a 56% reduction in the risk of flares.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits around Zenas BioPharma trended in the ‘extremely bullish’ territory at the time of writing.

One Stocktwits user stated that now is a good chance to add ZBIO stock and hold for gains, following the selloff on Monday.

Another user wondered if the stock is slightly oversold.

ZBIO stock is down 54% year-to-date, but up 69% over the past 12 months.

Also See: MNTS Stock Soared Over 80% Today – What’s Fueling Investor Optimism?

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