What happened
Shares of Zura Bio (ZURA 21.82%) closed up more than 35% Tuesday afternoon after climbing 28.3% earlier in the day. The move up is part of a pattern ever since the biotech company raised $80 million in a private placement to start two phase 2 trials of the company's lead therapies.
So what
Zura Bio's stock is up more than 122% this month. The company triggered interest when it said it had completed an $80 million funding round to begin a phase 2 clinical trial for ZB-106 in systemic sclerosis (SSc), as well as a phase 2 trial for the therapy to treat hidradenitis suppurativa (HS). SSc is an autoimmune disease that causes atypical growth of connective tissues, while HS is a condition that causes small, painful lumps to form under the skin, usually in areas where skin rubs together.
ZB-106 is a bi-specific antibody. The drug is designed to work by inhibiting the IL7R protein, which is essential for lymphatic development but can also lead to autoimmune diseases. The company's other promising therapies are Torudokimab, a monoclonal antibody that neutralizes the IL33 protein and ZB-168, a monoclonal antibody that inhibits the IL7 and TSLP pathways.
Now what
Analysts are beginning to notice the stock, which went public with a special purpose acquisition company (SPAC) merger in March. Chardan Capital recently began coverage on the stock with a buy rating and a price target of $14. Zura Bio now has $120 million, enough to fund operations through 2026, it said. Also, last week, Great Point Partners LLC disclosed that it now owns 3.295 million shares of the company.