Trial Failure: On December 11, 2025, Rezolute announced that its Phase 3 sunRIZE trial for ersodetug failed to meet its primary endpoint, causing shares to plummet by as much as 90% intraday, which not only devastated investor confidence but may also hinder the company's future financing capabilities.
Investor Misleading Investigation: Hagens Berman has launched an investigation into whether Rezolute misled investors regarding the efficacy of ersodetug prior to the trial, and if findings confirm wrongdoing, the company could face significant legal liabilities and compensation claims.
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 drastic shift in market sentiment regarding the company's future prospects.
Severe Market Reaction: The failure to demonstrate ersodetug's effectiveness led to a sharp decline in market trust in Rezolute, prompting widespread concerns about the company's transparency and governance, which could adversely affect its long-term strategic direction.
RZLT
$1.63+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
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 Buy
0 Hold
0 Sell
Strong Buy
Current: 1.800
Low
12.00
Averages
16.14
High
20.00
Current: 1.800
Low
12.00
Averages
16.14
High
20.00
Guggenheim
Buy
downgrade
$15 -> $6
2025-12-12
New
Reason
Guggenheim
Price Target
$15 -> $6
2025-12-12
New
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.
Maxim
Jason McCarthy
Buy
downgrade
$20 -> $4
2025-12-12
New
Reason
Maxim
Jason McCarthy
Price Target
$20 -> $4
2025-12-12
New
downgrade
Buy
Reason
Maxim analyst Jason McCarthy lowered the firm's price target on Rezolute to $4 from $20 but keeps a Buy rating on the shares. The firm cites the company's Phase 3 sunRIZE study of ersodetug in congenital hyperinsulinism, which did not meet its primary or secondary endpoint. The miss is clearly disappointing, but it may not tell the complete story as there are several nuances to consider, including the viability of a randomized controlled trial in ultra-rare disease, the use of background therapy for CHI in the trial and that the 59 patients that completed the study, the analyst tells investors in a research note.
H.C. Wainwright
Douglas Tsao
Buy
downgrade
$14 -> $5
2025-12-12
New
Reason
H.C. Wainwright
Douglas Tsao
Price Target
$14 -> $5
2025-12-12
New
downgrade
Buy
Reason
H.C. Wainwright analyst Douglas Tsao lowered the firm's price target on Rezolute to $5 from $14 and keeps a Buy rating on the shares. The firm is "surprised and disappointed "by the negative results of the sunRIZE study, but it still sees a path forward. The analyst continues to see value in the shares and pushed out the launch of ersodetug in congenital hyperinsulinism from 2027 to 2028.
Lucid Capital
Buy
downgrade
$76 -> $66
2025-12-11
New
Reason
Lucid Capital
Price Target
$76 -> $66
2025-12-11
New
downgrade
Buy
Reason
Lucid Capital lowered the firm's price target on Xoma (XOMA) to $66 from $76 and keeps a Buy rating on the shares. The company's partner Rezolute (RZLT) announced the Phase 3 sunRIZE clinical trial evaluating ersodetug for the treatment of congenital hyperinsulinism did not achieve its primary and a key secondary endpoint, the analyst tells investors in a research note. Lucid reduced the probability of success for ersodetug to 30% from 80%.
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.
