Rezolute, Inc. (RZLT) Shares Plunge 90% After Phase 3 Trial Failure Sparks Investigation

Written by Emily J. Thompson, Senior Investment Analyst

RZLT-3.85%

Source: PRnewswire

Updated: Jan 14 2026

0mins

Source: PRnewswire

Stock Price Crash: On December 11, 2025, Rezolute, Inc. saw its shares plummet by as much as 90% during intraday trading after announcing the failure of its Phase 3 trial, resulting in significant losses for investors and highlighting major setbacks in the company's drug development efforts.
Investor Confidence Shaken: Prior to the trial results, Rezolute assured investors that its drug ersodetug could significantly improve the quality of life for individuals with hyperinsulinism; however, the trial results failed to meet the primary endpoint, leading to a drastic decline in market confidence regarding the company's future prospects.
Legal Investigation Launched: Hagens Berman has initiated an investigation into whether Rezolute misled investors about the efficacy and commercial potential of its drug, raising serious concerns about corporate governance and transparency.
Analyst Rating Downgrade: Following the trial results, analysts swiftly downgraded Rezolute's rating from outperform to neutral, slashing the price target from $12 to $1, reflecting a pessimistic outlook on the company's future developments.

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RZLT

$3.25+Infinity%1D

Analyst Views on RZLT

Wall Street analysts forecast RZLT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RZLT is 6.29 USD with a low forecast of 2.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Analyst Rating

5 Buy

4 Hold

0 Sell

Moderate Buy

Current: 3.380

Low

2.00

Averages

6.29

High

20.00

Current: 3.380

Low

2.00

Averages

6.29

High

20.00

Wedbush

Neutral

maintain

$1 -> $2

2026-01-08

Reason

Wedbush

Price Target

$1 -> $2

AI Analysis

2026-01-08

maintain

Neutral

Reason

Wedbush raised the firm's price target on Rezolute to $2 from $1 and keeps a Neutral rating on the shares. The firm notes the company reported PK/PD data and detailed glycemic control outcomes from the Phase 3 sunRIZE study of ersodetug in congenital hyperinsulinism. Wedbush believes that the new data demonstrates ersodetug's activity in modulating insulin receptors to reduce both events and time in hypoglycemia in treated patients, although whether the magnitude of benefit is sufficient to support an FDA approval remains unclear.

Guggenheim

Buy

downgrade

$15 -> $6

2025-12-12

Reason

Guggenheim

Price Target

$15 -> $6

2025-12-12

downgrade

Buy

Reason

Guggenheim lowered the firm's price target on Rezolute to $6 from $15 and keeps a Buy rating on the shares. Following the failure of the sunRIZE trial, the firm is eliminating cHI from its model despite managment's "optimism" on a potential path forward, the analyst tells investors. The firm's lower target reflects the elimination of cHI, a lower price point forecast for tHI and lower odds of success, until proven otherwise, for tHI, the analyst noted.

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About RZLT

Rezolute, Inc. is a late-stage rare disease company, which is focused on improving outcomes for individuals with hypoglycemia caused by hyperinsulinism (HI). Its lead clinical asset, Ersodetug (formerly RZ358), is a potential treatment for hypoglycemia caused by multiple forms of hyperinsulinism including congenital HI and tumor HI. Ersodetug is an intravenously administered human monoclonal antibody that binds to a unique site (allosteric) on the insulin receptor in insulin target tissues, such as in the liver, fat, and muscle. Congenital is a rare pediatric genetic disorder characterized by excessive production of insulin by the pancreas. RZ402, which is an oral plasma kallikrein inhibitor (PKI) being developed as a potential therapy for the chronic treatment of diabetic macular edema (DME). DME is a vascular complication of diabetes and a leading cause of blindness. RZ402 is designed to block bradykinin production and its resulting effects on vascular leakage and inflammation.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.