Zenas BioPharma Strikes $2B+ Deal with InnoCare, Bolstering Autoimmune Portfolio
Zenas BioPharma has entered into a potentially $2 billion-plus licensing agreement with Chinese firm InnoCare Pharma, significantly expanding its autoimmune disease pipeline. The deal, announced on Wednesday, centers around three key assets, including a late-stage multiple sclerosis (MS) treatment that could become a major player in the market.
Orelabrutinib: A Potential Blockbuster for MS
The crown jewel of the agreement is orelabrutinib, a Bruton's Tyrosine Kinase (BTK) inhibitor currently in Phase III development for primary progressive multiple sclerosis (PPMS). Zenas plans to initiate an additional Phase III trial for secondary progressive MS (SPMS) in the first quarter of 2026.
Orelabrutinib has shown promise in earlier studies, with Phase II results in relapsing-remitting MS (RRMS) demonstrating significant reductions in inflammatory activity and disease progression markers. Zenas CEO Lonnie Moulder expressed confidence in the drug's potential, stating, "We believe we have a best-in-class product candidate."
The company estimates orelabrutinib's peak annual sales potential at $12 billion in the U.S. alone, positioning it as a formidable competitor to existing treatments like Roche's Ocrevus and Sanofi's investigational tolebrutinib.
Deal Structure and Financial Implications
Under the terms of the agreement, Zenas will provide InnoCare with:
- Up to $100 million in upfront and near-term milestone payments
- 7 million shares of Zenas common stock
- Potential for over $2 billion in development, regulatory, and commercial milestones
- Tiered royalties reaching up to high-teens percentage on annual net sales
To support this significant investment, Zenas has separately secured a private placement of stock worth approximately $120 million. This financing, combined with a potential $75 million milestone payment from Royalty Pharma, is expected to fund operations into late 2026 or early 2027.
Expanding the Autoimmune Pipeline
In addition to orelabrutinib, the InnoCare deal grants Zenas rights to two early-stage autoimmune drug candidates:
- An oral IL-17AA/AF blocker
- An oral, brain-penetrant TYK2 inhibitor
Both compounds are slated to enter Phase I trials in 2026, further diversifying Zenas' autoimmune disease portfolio.
This latest agreement follows Zenas' recent $300 million deal with Royalty Pharma for obexelimab, another autoimmune candidate in Phase III testing for IgG4-related disease and systemic lupus erythematosus.
References
- Zenas Bets $2B+ in Autoimmune Agreement With Chinese Firm InnoCare
The centerpiece of the deal is orelabrutinib, a BTK inhibitor in late-stage development for multiple sclerosis that Biogen once paid $125 million for but abandoned after less than two years of testing.
- Zenas looks to China to stock pipeline with 3 more immune drugs
A potentially $2 billion deal with InnoCare Pharma hands Zenas rights to a BTK inhibitor in late-stage testing for multiple sclerosis and two other immune medicines in earlier development.
- Zenas makes big bet on MS drug, striking $2B licensing deal with InnoCare
Eying a multiple sclerosis drug that it has tabbed with peak annual sales potential of $12 billion in the U.S. alone, Zenas BioPharma has struck a licensing deal with China-based InnoCare Pharma that could be worth more than $2 billion.
Explore Further
What competitive advantages does orelabrutinib offer compared to existing multiple sclerosis treatments like Ocrevus and tolebrutinib?
What is the current status and clinical data supporting the efficacy and safety of orelabrutinib in its Phase II and Phase III trials?
How do the financial terms, including milestone payments and royalties, compare to other recent BD deals in the autoimmune or multiple sclerosis space?
What is the market size projection for the autoimmune disease pipeline assets acquired through the InnoCare deal?
Who are the major competitors in the market for oral IL-17AA/AF blockers and brain-penetrant TYK2 inhibitors, and what differentiates these compounds?