Zenas BioPharma secures $300M funding from Royalty Pharma for obexelimab royalties.

Zenas BioPharma has entered a funding agreement with Royalty Pharma for up to $300 million in exchange for a royalty on sales of obexelimab. The initial $75 million payment will fund operations through Q1 2027. Royalty Pharma supports biopharmaceutical innovation through direct and indirect funding, partnering with companies for late-stage trials and new product launches in exchange for future royalties, or acquiring existing royalties.

Zenas BioPharma, Inc. (Nasdaq: ZBIO) has announced a significant funding agreement with Royalty Pharma plc (Nasdaq: RPRX), securing up to $300 million in exchange for royalties on sales of obexelimab. The initial $75 million payment will fund the company's operations through the first quarter of 2027. This agreement supports Zenas' broad obexelimab program, which includes development for Immunoglobulin G4-Related Disease (IgG4-RD), Relapsing Multiple Sclerosis (RMS), and Systemic Lupus Erythematosus (SLE).

Under the agreement, Royalty Pharma will provide up to $300 million, with an upfront payment of $75 million and three additional payments of $75 million each upon achieving specific milestones. These milestones include the success of the Phase 3 INDIGO trial, FDA approval for IgG4-RD, and FDA approval for SLE. In exchange, Royalty Pharma will receive a 5.5% royalty on worldwide net sales of obexelimab.

The funding is a strategic move for Zenas, providing financial flexibility to advance its clinical programs and fund the commercial launch of obexelimab if approved. The company expects to have cash to fund operations through the first quarter of 2027 with the initial $75 million payment.

Royalty Pharma, known for its role in funding biopharmaceutical innovation, is committed to supporting Zenas' development program. The company has a history of collaborating with innovators across the biopharmaceutical industry, including academic institutions, research hospitals, and non-profits.

Zenas BioPharma is focused on developing transformative therapies for patients with autoimmune diseases. Obexelimab, the company's lead product candidate, is a bifunctional monoclonal antibody designed to inhibit B cell function by binding to both CD19 and FcγRIIb. This unique mechanism of action makes it a promising candidate for treating chronic autoimmune diseases.

This funding agreement underscores the potential of obexelimab as a franchise molecule and aligns with Royalty Pharma's strategy of supporting innovative biotech companies. The agreement builds on an already record year for Royalty Pharma in announced value of synthetic royalty transactions.

Zenas BioPharma's upcoming key milestones include the topline results from the pivotal Phase 3 trial in IgG4-RD expected around year-end, the Phase 2 trial in RMS expected early in the fourth quarter of this year, and the Phase 2 trial in SLE expected in mid-2026.

Reference List:
[1] https://investors.zenasbio.com/news-releases/news-release-details/zenas-biopharma-and-royalty-pharma-enter-obexelimab-funding