InnoCare Sells MS Drug Rights to Zenas in $2B Deal
InnoCare Pharma Ltd. has agreed to sell global rights to its multiple sclerosis drug orelabrutinib to Zenas BioPharma Inc., in a deal potentially worth over $2 billion. Investors expressed concerns about the low upfront cash proportion and Zenas' financial robustness.
The agreement marks InnoCare's second outbound licensing deal this year, following a January deal with Keymed Biosciences Inc. InnoCare retains global control of orelabrutinib as a cancer drug and rights for its use against other conditions in Greater China and Southeast Asia.
The deal includes upfront, development, regulatory, and commercial milestone payments. InnoCare will receive $35 million in upfront cash, $65 million in near-term milestone payments, and 7 million Zenas shares worth roughly $146 million. The remaining $1.7 billion depends on the drug meeting targets for research, regulatory clearance, and commercial returns.
InnoCare previously licensed orelabrutinib to Biogen Inc. in 2021 for $125 million. However, Biogen pulled out of the collaboration in 2023, leading InnoCare to pursue Phase Three trials for the drug in multiple sclerosis. Lonnie Moulder, CEO of Zenas BioPharma, acquired the rights to InnoCare's flagship drug.
InnoCare's strategic focus on globalizing its products through business development deals continues. The company aims to expand its reach and maximize the potential of its flagship drug, orelabrutinib, despite investor concerns about the deal's terms.
