Zenas Bio inks potential $2 billion licensing deal with China’s InnoCare for autoimmune drug

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(Reuters) -Zenas BioPharma said on Wednesday it has secured global rights to develop and commercialize an experimental drug from China-based InnoCare Pharma for multiple sclerosis and other autoimmune conditions under a licensing deal potentially worth more than $2 billion.

The deal grants Zenas worldwide rights to the drug, orelabrutinib, outside oncology. The U.S.-based drug developer will pay up to $100 million in upfront and near-term milestone payments and issue up to 7 million shares of common stock to InnoCare.

The agreement also covers two additional drug candidates, both slated for early-stage trials next year.

Orelabrutinib is being tested in a late-stage trial for a type of multiple sclerosis, a chronic disease that affects the central nervous system, with another due to begin in early 2026.

The total of the upfront payment, near-term milestone and potential development and regulatory milestone payments, along with potential commercial sales milestones across all three programs, exceeds $2 billion, Zenas said.

“With this transaction, we have established a balanced portfolio … with best-in-class blockbuster potential across multiple therapeutic areas,” Zenas CEO Lonnie Moulder said.

Orelabrutinib is already approved for types of blood cancer in China and Singapore, where it is marketed as Yinuokai and Hibruka, respectively.

Zenas also announced a $120 million private placement to fund development of the programs.

(Reporting by Puyaan Singh in Bengaluru; Editing by Tasim Zahid)