Zenas BioPharma Buys Worldwide Rights To Obexelimab From Xencor

(RTTNews) - Zenas BioPharma has acquired from Xencor Inc. (XNCR) exclusive worldwide rights to develop, manufacture and commercialize the investigational antibody obexelimab.

Obexelimab is a potential first-in-class bifunctional antibody that targets CD19 with its variable domain and uses Xencor's XmAb Immune Inhibitor Fc Domain to target Fc?RIIb, a receptor that inhibits the function of B-cells, which are important components in the immune system.

Xencor demonstrated through early-stage clinical studies that obexelimab effectively inhibits B-cell function without depleting the cells and generates an encouraging treatment effect in patients with multiple autoimmune diseases.

As per the terms of the deal, Zenas will issue to Xencor a warrant giving Xencor the right to acquire additional Zenas equity, such that Xencor's total equity in Zenas would be 15% of its fully diluted capitalization following the closing of Zenas' next round of equity financing.

Xencor previously received equity in Zenas under a separate license agreement. Xencor is also eligible to receive up to $480 million based on the achievement of certain clinical development, regulatory and commercialization milestones and is eligible to receive tiered, mid-single digit to mid-teen percent royalties upon commercialization of obexelimab, dependent on geography. Zenas will have sole responsibility for advancing the research, development, regulatory and commercial activities of obexelimab worldwide.