Cantor Fitzgerald has opened coverage on Surrozen Inc. (NASDAQ: SRZN), assigning an overweight rating and setting a price target of $40 per share, the firm said on Wednesday.
The research note emphasizes Surrozen's position in Wnt biology, pointing to foundational intellectual property that originates from early efforts to develop Wnt agonists. Cantor Fitzgerald frames the company as advancing structurally complex molecules toward clinical testing for retinal diseases, including candidates that pair Wnt activity with anti-VEGF functionality and tri-specific constructs combining Wnt, VEGF and IL-6 activity.
In its financial model, Cantor Fitzgerald projects peak global probability-adjusted net sales for SZN-8141 of $895 million in diabetic macular edema (DME), applying a 35% probability of technical and commercial success for that indication. For neovascular age-related macular degeneration (nAMD), the firm estimates peak probability-adjusted net sales of $614 million with an assigned probability of success of 20% for SZN-8141. The valuation assumes an annual net price roughly in line with precedent VEGF products, at approximately $14,500 per year.
The analyst house derived the $40 target using a discounted cash flow framework that applies a 15% discount rate and a 2% terminal growth rate. Cantor Fitzgerald’s model incorporates about 25 million fully diluted shares, in contrast with approximately 8.6 million basic shares reported by Surrozen as of the third quarter of 2025. The larger share count in the model includes shares expected from the second tranche of the PIPE financing, which the firm notes is anticipated by October 31, 2026, and it adjusts PIPE warrants using the treasury stock method.
Separately, Surrozen filed an SEC notice disclosing the immediate resignation of Shao-Lee Lin, M.D., Ph.D., from its board of directors. The company explicitly stated that Dr. Lin’s departure was not related to any disagreement with Surrozen’s operations, policies or practices, and it expressed appreciation for her service and dedication during her tenure. The filing does not identify a replacement director or indicate additional board changes.
These items collectively point to both near-term valuation assumptions and ongoing leadership transitions at Surrozen. Cantor Fitzgerald’s clinical and commercial probabilities, pricing assumptions and expected dilution are central to the firm’s valuation, while the board change underscores a degree of corporate transition. Investors and market participants may want to watch for further announcements about board appointments, clinical progress for SZN-8141, and any updates on the PIPE financing timetable.
Contextual notes - The projections, probability assumptions, price assumptions, discount and terminal growth rates, and share count assumptions are those reported by Cantor Fitzgerald and reflected in its initiation model. The company’s SEC filing provided the details regarding the board resignation and the company’s statement about the reasons for that resignation.