Zenas BioPharma slides on $300 mln convertible bond, stock sales

Jefferies Financial

27/03/2026 13:03

** Zenas BioPharma ZBIO.O shares down 12.9% in premarket trading at $19.30 after securing capital raise

** Autoimmune disease specialist early Fri announced pricing public offering of $200 mln 2.50% 6-yr convertible bonds (CBs)

** Co also sold 5 mln shares at $20 for $100 mln gross proceeds

** Offering price represents 9.7% discount to stock's last close of $22.16

** Initial conversion price on the CBs set at $26.50, a 32.5% premium to public offering price of the equity deal

** Jefferies, Evercore, Citigroup and Guggenheim joint bookrunners

** Waltham, Massachusetts-based co, which has 57.4 mln shares outstanding, intends to use net proceeds from both offerings to support planned U.S. commercial launch of obexelimab, if approved, and advance its development pipeline

** 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

** Through Thurs, stock off 39% YTD after surging more than fourfold in 2025

** Of 8 analysts covering the stock, 5 rate "strong buy", 2 rate "buy", 1 "hold'; 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))