Zenas, InnoCare ink $2 billion MS drug licensing deal

WALTHAM/BEIJING - Zenas BioPharma (NASDAQ:ZBIO) has secured global rights to develop and commercialize orelabrutinib for multiple sclerosis and other non-oncology indications through a licensing agreement with InnoCare Pharma (HKEX:09969; SSE:688428), the companies announced Wednesday. According to InvestingPro data, Zenas maintains a solid financial health score of 1.97, with more cash than debt on its balance sheet, though the company is currently experiencing rapid cash burn.

Under the agreement, Zenas will pay InnoCare up to $100 million in upfront and near-term milestone payments, plus up to 7 million shares of Zenas common stock. The total potential value of the deal, including development, regulatory and commercial milestones, exceeds $2 billion. With a current market capitalization of $878 million and a current ratio of 5.23, Zenas appears well-positioned to meet its near-term obligations.

Orelabrutinib is an oral, CNS-penetrant Bruton’s Tyrosine Kinase (BTK) inhibitor currently in Phase 3 development for progressive forms of multiple sclerosis. A Phase 3 trial in primary progressive MS (PPMS) has already begun, with a second pivotal trial in secondary progressive MS (SPMS) expected to start in Q1 2026.

The agreement also gives Zenas rights to two additional drug candidates: an oral IL-17AA/AF inhibitor and an oral, brain-penetrant TYK2 inhibitor. Both are expected to enter Phase 1 clinical trials in 2026.

"With global rights to orelabrutinib, we are advancing a potential blockbuster franchise for progressive MS," said Lonnie Moulder, Founder and CEO of Zenas, in the press release statement.

Concurrent with the licensing deal, Zenas announced a $120 million private placement financing from institutional and accredited investors, with shares priced at $19.00 each. The company’s directors and officers will purchase shares at $20.85 each.

InnoCare will retain full global rights to orelabrutinib in oncology, where the drug is already approved for B-cell malignancies in mainland China and Singapore. For detailed financial analysis and real-time updates on Zenas BioPharma’s performance metrics, visit InvestingPro.

In other recent news, Zeta Network Group has entered a strategic partnership with SOLV Foundation to enhance its Bitcoin-centric financial initiatives. The agreement involves depositing Zeta Network Group’s Bitcoin assets on SOLV’s platform, which boasts $2.5 billion in total value locked, under a regulated third-party custodian. This move aims to ensure transparency and institutional-grade auditability for the company’s Bitcoin holdings. Meanwhile, Citi has reiterated its Buy rating on Zenas Biopharma stock, maintaining a $27 price target. The reaffirmation follows a virtual fireside chat with Zenas Biopharma’s Chairman and CEO, focusing on their lead drug candidate obexelimab. Citi emphasized the drug’s unique profile in treating B cell-linked autoimmune diseases and its ongoing clinical trials for conditions like IgG4-RD, multiple sclerosis, and SLE. These developments reflect ongoing strategic initiatives and analyst perspectives for both companies.

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