Zenas BioSciences Inks $2B+ Deal with InnoCare, Betting Big on Autoimmune Therapies

In a significant move that underscores the growing trend of international pharmaceutical collaborations, Boston-based Zenas BioSciences has entered into a global licensing agreement with Beijing's InnoCare Pharma. The deal, potentially worth over $2 billion, centers on multiple autoimmune drug candidates and highlights the industry's continued interest in Chinese innovation.

Orelabrutinib: A Second Chance for a Promising MS Treatment

The cornerstone of this transformative agreement is orelabrutinib, a BTK inhibitor currently in late-stage development for multiple sclerosis (MS). This oral, central nervous system-penetrating drug has had an interesting journey. Previously licensed by Biogen in 2021 for $125 million upfront, orelabrutinib was returned to InnoCare less than two years later. Now, Zenas sees potential where Biogen saw challenges, with CEO Lonnie Moulder expressing confidence that orelabrutinib could become a "blockbuster franchise for progressive MS."

Orelabrutinib is not entering the U.S. market as an unknown entity. The drug has already received approval in China for several hematological cancers, including chronic lymphocytic leukemia and mantle cell lymphoma. A global Phase III trial for primary progressive MS is currently underway, with Zenas planning to initiate an additional late-stage global program in the first quarter of 2026.

Expanding the Autoimmune Portfolio

Beyond orelabrutinib, the deal grants Zenas access to two other promising candidates:

1. Obexelimab: A monoclonal antibody inhibiting B cell function, targeted for IgG4-related disease, relapsing MS, and systemic lupus erythematosus.

2. Early-stage candidates: An oral IL-17AA/AF blocker and a brain-penetrant TYK2 inhibitor, both in early development stages.

Deal Structure and Industry Trends

The financial structure of the agreement reflects the high stakes in play. Zenas is fronting $100 million in cash for upfront and near-term payments, including milestones expected in 2026. Additionally, up to 7 million shares of Zenas common stock are part of the deal, with some shares contingent on InnoCare meeting a milestone in early 2026.

This deal is part of a larger trend of increasing collaborations between Western pharmaceutical companies and Chinese firms. IQVIA analysis shows that in the first half of 2025 alone, biopharma companies committed up to $48.5 billion in Chinese contracts, surpassing the $44.8 billion pledged in all of 2024. Notable examples include Pfizer's $1.25 billion upfront payment to 3SBio and AstraZeneca's partnerships with CSPC and Harbour Biomed, worth $5.3 billion and $4.5 billion, respectively.

As the pharmaceutical landscape continues to evolve, deals like the one between Zenas and InnoCare underscore the global nature of drug development and the increasing importance of cross-border collaborations in bringing innovative therapies to market.