Zenas BioPharma, Royalty Pharma enter obexelimab funding agreement

Zenas BioPharma (ZBIO) and Royalty Pharma (RPRX) announced that Royalty Pharma will provide up to $300M in funding in exchange for a royalty on sales of obexelimab. Obexelimab is an investigational bifunctional monoclonal antibody designed to inhibit B cell function by binding to both CD19 and FcgammaRIIb and is in Phase 3 development for the treatment of Immunoglobulin G4-Related Disease, and Phase 2 development for Relapsing Multiple Sclerosis and Systemic Lupus Erythematosus. This financing will support obexelimab development and a potential IgG4-RD commercial launch in the first half of 2027, subject to approval by the U.S. Food and Drug Administration. With the receipt of the initial $75M payment under the agreement with Royalty Pharma, the Company expects to have cash to fund its operations through the first quarter of 2027. Under the agreement Zenas will receive up to $300M, consisting of an upfront payment of $75M, and three additional payments of $75M each upon achievement of defined success criteria in the Phase 3 INDIGO trial of obexelimab in IgG4-RD, U.S. FDA approval of obexelimab for IgG4-RD, and U.S. FDA approval of obexelimab for SLE. In exchange, Royalty Pharma will receive a 5.5% royalty on worldwide net sales of obexelimab by Zenas and its affiliates and certain other payments associated with the commercialization of obexelimab in partnered geographies.