Zenas BioPharma's (ZBIO) investor update supports a larger addressable market for obexelimab in immunoglobulin G4-related disease, with room for market penetration and potential safety differentiation, Wedbush said in a Wednesday note.

Zenas increased its estimate to about 30,000 to 40,000 prevalent US IgG4-related disease cases, including about 25,000 diagnosed and treated patients, and now estimates a roughly $4 billion commercial opportunity in the US, the firm noted. Wedbush attributed the increase to improved diagnosis.

The firm noted Zenas' estimate that Uplizna, the only approved competitor, has reached about 1,200 unique patients 16 months after launch.

The firm said the data and physician feedback support an opportunity for advanced treatments beyond as-needed glucocorticoids, with significant unmet need remaining.

Wedbush reiterated its outperform rating and $45 price target.

Price: 28.29, Change: +1.53, Percent Change: +5.72