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Zenas Biopharma stock soars after securing rights to MS drug candidate

Published 08/10/2025, 13:42
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Investing.com -- Zenas Biopharma Inc (NASDAQ:ZBIO) stock surged 13.7% in premarket trading Wednesday after the company announced a transformational licensing agreement with InnoCare Pharma for three autoimmune product candidates, including orelabrutinib, a BTK inhibitor in Phase 3 development for Multiple Sclerosis.

The agreement grants Zenas global development and commercialization rights to orelabrutinib for Multiple Sclerosis and all therapeutic areas outside oncology. Additionally, Zenas secured rights to a novel oral IL-17AA/AF inhibitor and an oral brain-penetrant TYK2 inhibitor.

Under the terms of the deal, 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 agreement, including development, regulatory, and commercial milestones, exceeds $2 billion. InnoCare will also receive tiered royalties of up to high teens percentages on annual net sales.

Orelabrutinib is described as a potentially best-in-class, highly selective CNS-penetrant oral BTK inhibitor that could address inflammation and disease progression in MS. A Phase 3 trial for Primary Progressive MS has already been initiated, with a second Phase 3 trial for Secondary Progressive MS planned for the first quarter of 2026.

Alongside the licensing deal, Zenas announced a private placement financing expected to generate approximately $120 million in gross proceeds. The company will issue about 6.3 million shares to institutional and accredited investors at $19.00 per share, with certain directors and officers purchasing at $20.85 per share.

Following the private placement, Zenas expects its cash position to fund operations into the fourth quarter of 2026, or into the first quarter of 2027 if it receives a potential $75 million milestone payment from Royalty Pharma.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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