Rezolute (RZLT) Shares Plunge 90% After Phase 3 Trial Failure Sparks Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Stock Crash: On December 11, 2025, Rezolute announced the failure of its Phase 3 sunRIZE trial, causing its shares to plummet by as much as 90% during intraday trading, severely undermining investor confidence and directly impacting the company's market capitalization and financing capabilities.
- Investor Misleading Investigation: Hagens Berman has launched an investigation into whether Rezolute misled investors regarding the efficacy and commercial prospects of ersodetug prior to the trial, which could lead to increased legal liabilities for the company.
- Analyst 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 prospects in the market.
- Severe Market Reaction: The trial's failure to meet its primary endpoint, coupled with the lack of statistical significance in reducing hypoglycemia events compared to placebo, has drastically diminished market trust in Rezolute, potentially affecting its future financing and research capabilities.
RZLT
$2.44+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 16.14 USD with a low forecast of 12.00 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.
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 2.050
Low
12.00
Averages
16.14
High
20.00
Current: 2.050
Low
12.00
Averages
16.14
High
20.00
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.
