Zenas BioPharma, Royalty Pharma Partner for $300mln Obexelimab Funding Agreement

• Zenas BioPharma and Royalty Pharma announce funding agreement for up to $300 million • $75 million to fund potential U.S. commercial launch of obexelimab • Additional $150 million tied to Phase 3 INDIGO trial results and FDA approval for IgG4-Related Disease • Royalty Pharma to receive royalty on obexelimab sales

Royalty Pharma (Nasdaq: RPRX) and Zenas BioPharma, Inc. (Nasdaq: ZBIO) have announced a significant funding agreement worth up to $300 million for the development and potential commercial launch of obexelimab. The deal, which includes an upfront payment of $75 million, is structured to provide staged non-dilutive capital aligned with development milestones. Royalty Pharma will receive a 5.5% royalty on worldwide net sales of obexelimab, creating a valuable long-term revenue stream if the drug achieves approval across multiple indications.

Obexelimab, a bifunctional monoclonal antibody designed to inhibit B cell function by binding to both CD19 and FcγRIIb, is currently in Phase 3 trials for IgG4-Related Disease (IgG4-RD) and Phase 2 trials for Multiple Sclerosis and Systemic Lupus Erythematosus. The funding will support the development and potential commercial launch of obexelimab for IgG4-RD in early 2027, subject to approval by the U.S. Food and Drug Administration (FDA).

The agreement includes three additional $75 million payments tied to specific clinical and regulatory achievements. The first payment will be made upon the achievement of defined success criteria in the Phase 3 INDIGO trial of obexelimab in IgG4-RD, expected around the end of this year. The second payment will be made upon U.S. FDA approval of obexelimab for IgG4-RD, and the third payment will be made upon U.S. FDA approval of obexelimab for SLE.

Royalty Pharma's investment in obexelimab reflects the company's strategy to expand its portfolio of royalty-generating products. The deal is particularly favorable for Zenas, providing financial flexibility to rapidly advance its clinical programs and fund the commercial launch of obexelimab if approved for the treatment of IgG4-RD.

References:
[1] https://www.stocktitan.net/news/RPRX/royalty-pharma-and-zenas-bio-pharma-enter-into-obexelimab-funding-xz46l7c4b78n.html