Zura Bio Limited

Zura Bio Limited (NASDAQ: ZURA) is a multi-asset clinical-stage biotechnology company focused on developing medicines for immune and inflammatory disorders. The Company is advancing immunology assets into phase II development programs, including ZB-168 and torudokimab. ZB-168 is an anti-interleukin-7 receptor subunit alpha (IL7Rα) inhibitor that has the potential to impact diseases driven by interleukin-7 (IL7) and thymic stromal lymphopoietin (TSLP) biological pathways.

Recent Financial and Business Updates:

• Key Business Highlights for Zura in the Second Quarter of 2023:
  • Licensed ZB-106 (tibulizumab) from Eli Lilly and Company, a potential first-in-class dual antagonist targeting anti-IL-17 and anti-BAFF (Press Release, April 27, 2023).
  • Successfully completed a private placement round, raising approximately USD 80 million with leading life sciences-focused investors, including Deep Track Capital, Great Point Partners, and Suvretta Capital (Press Release, June 6, 2023).
  • Welcomed Michael D. Howell, Ph.D., as Chief Scientific Officer and Head of Translational Science (Press Release, April 14, 2023).
  • Joined the prestigious Russell 2000® and Russell 3000® Indexes, enhancing the company's visibility and market presence (Press Release, June 23, 2023).

• Key Financial Highlights for the Second Quarter of 2023:
  • Cash and cash equivalents totaled USD 112.8 million as of June 30, 2023, compared to USD 1.6 million at the end of December 31, 2022. The significant increase was primarily attributed to capital raised through two private placement transactions in March and April 2023. This cash reserve is expected to support planned operations through 2026.
  • Research and Development (R&D) expenses amounted to USD 28.2 million for the second quarter of 2023, a notable increase compared to USD 0.1 million during the same period in 2022. The rise was primarily driven by expenses related to the acquisition of ZB-106 from Eli Lilly and Company.
  • General and Administrative (G&A) expenses for the second quarter of 2023 totaled USD 5.7 million, a significant uptick from USD 0.8 million in the second quarter of 2022. This increase was primarily due to elevated compensation for executive personnel and heightened legal and accounting costs related to a second-quarter private placement transaction and the ongoing operations as a public company.

• Key Upcoming Events for Zura Bio:
  • Phase 2 trials for ZB-106 (tibulizumab), the anti-IL-17 and anti-BAFF dual antagonist, are set to commence in the second half of 2024, targeting systemic sclerosis and hidradenitis suppurativa.
  • In 2024, the company plans to initiate Phase 2 trials for ZB-168, an anti-IL-7Rα inhibitor, with potential catalysts in ulcerative colitis, atopic dermatitis, and additional TSLP-driven indications.
  • Preparations are underway to launch Phase 2 trials for ZB-880 (torudokimab), an anti-IL-33 antibody, in 2024, with pending Phase 2 and Phase 3 catalysts in asthma and chronic obstructive pulmonary disease.
    

Technical Observation (on the daily chart)

Currently, the stock has corrected by around 80.96% from its 52- week low dated March 24, 2023. The RSI (14 period) momentum indicator is at a value of 49.59, with expectations of some consolidation. Moreover, the price is currently positioned between both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support and resistance levels respectively.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Zura Bio Limited (NASDAQ: ZURA) at the current market price of USD 6.85 as of September 07, 2023, at 07:10 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 07, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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