Zenas BioPharma Announces Larger Series C Worth $200 Million

Funding led by SR One, NEA, Norwest Venture Partners and Delos Capital with significant participation from Enavate Sciences, Longitude Capital and other new and existing investors

Proceeds to support ongoing mid- to late-stage clinical development programs of the company’s lead I&I product candidate, obexelimab

WALTHAM, Mass., May 7, 2024 (GLOBE NEWSWIRE) — Zenas BioPharma, a global biopharmaceutical company committed to becoming a leader in the development and commercialization of inflammation and immunology targeted therapies, today announced the closing of a major $200 million series C preferred equity financing. The funding round was led by SR One together with NEA, Norwest Venture Partners and Delos Capital with significant participation from Enavate Sciences and Longitude Capital. Additional new investors, the Federated Hermes Kaufmann Funds and Arrowmark Partners, along with existing investors, Fairmount, Wellington Management, Rock Springs Capital, Pivotal bioVenture Partners, Vivo Capital, Quan Venture Fund and Superstring Capital participated in the financing. In conjunction with the financing, Jake Nunn, venture partner at SR One, and Tim Xiao, partner at Delos Capital, joined Zenas’ Board of Directors.

Proceeds will support the ongoing mid- to late-stage clinical development programs of the company’s lead product candidate, obexelimab, a bifunctional monoclonal antibody designed to bind both CD19 and FcγRIIb to stimulate the activity of B cells, plasmablasts and inhibit CD19-expressing plasma cells.

Obexelimab’s clinical programs include an ongoing Phase 3 registrational study in IgG4-related diseases, two planned Phase 2 randomized controlled trials in multiple sclerosis and systemic lupus erythematosus, and an ongoing open-label Phase 2 study in warm autoimmune hemolytic anemia.

“We are pleased and appreciate the support we have received from this group of great life sciences investors as we advance the ongoing obexelimab development program in multiple autoimmune diseases,” said Lonnie Moulder, Founder and Chief Executive Officer of Zenas BioPharma. “Their commitment to Zenas is a testament to our vision to be a global leader in bringing innovative immunology-based therapies to patients around the world. This funding will allow us to complete multiple potentially value-driven clinical programs.”

“We are excited to support Zenas’ continued progress toward its goal of becoming a global leader in innovative immunology-based therapies, and we are confident in the capabilities of this exceptional team to drive the extensive development program for obexelimab for multiple potential indications.” says Jake Nunn, venture partner at SR One. “At SR One, we invest in companies like Zenas, whose science has the potential to rewrite medical textbooks and meaningfully transform patient care. We are proud to serve as a lead investor alongside an exceptional syndicate and look forward to supporting Zenas in advancing a pipeline of innovative new therapeutic approaches for patients living with inflammatory and immune-mediated diseases.”

About Obexelimab

Obexelimab is a bifunctional monoclonal antibody designed to bind both CD19 and FcγRIIb to inhibit B-lineage cell activity. Obexelimab has demonstrated clinical activity and was well tolerated in five clinical trials, including in several autoimmune diseases, dosing 198 subjects. In these clinical trials, obexelimab showed inhibition of B cell function without depleting cells, resulting in an encouraging treatment effect in patients with various autoimmune diseases. Zenas has acquired exclusive worldwide rights to obexelimab from Xencor, Inc. Obexelimab is currently being investigated in a global phase 3 clinical trial in patients with IgG4-related diseases and a global phase 2/3 trial in patients with warm autoimmune hemolytic anemia (wAIHA). The clinical development of obexelimab for multiple sclerosis and systemic lupus erythematosus is ongoing.

More information about the Phase 3 trial (INDIGO) for the treatment of IgG4-related diseases is available at clinicaltrials.gov: NCT05662241. More information about the Phase 2/3 (SApHiAre) study for the treatment of wAIHA is available at clinicaltrials.gov: NCT05786573.

About Zenas BioPharma

Zenas BioPharma is a global clinical-stage biopharmaceutical company committed to becoming a leader in the development and commercialization of inflammation and immunology (I&I) targeted therapies for patients in need around the world. With clinical development capabilities and operations around the world, Zenas is advancing a portfolio of potentially differentiated autoimmune therapies in areas of high unmet medical need. Zenas’ experienced leadership team and network of business partners drive operational excellence to deliver potentially transformative therapies to improve the lives of people affected by autoimmune and rare diseases. For more information about Zenas BioPharma, please visit www.zenasbio.com and follow us at X at @ZenasBioPharma and LinkedIn.

About SR One

SR One is a transatlantic biotechnology venture capital firm that collaborates with entrepreneurs and investment partners in an effort to build elite biotechnology companies. The company’s mission is to translate innovative technologies and scientific discoveries into next-generation medicines that have the potential to benefit patients with significant unmet medical needs. SR One’s leadership has been working together to build and invest in biotechnology companies for more than a decade. SR One’s venture partners work alongside the investment team and bring deep operational experience to assist company creation initiatives and support portfolio companies with financing and business strategies. SR One has offices in Redwood City, CA, and Philadelphia, PA, in the US and London in the UK. For more information, please visit www.srone.com.

About NEA

New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational companies across multiple stages, sectors and geographies. Founded in 1977, NEA has more than $25 billion in assets under management as of December 31, 2023, investing in technology and healthcare companies at all stages of a company’s life cycle, from seed to initial public offering. Its long track record of investing includes more than 270 initial public offerings of portfolio companies and more than 450 mergers and acquisitions. For more information, please visit www.nea.com.

About Norwest Venture Partners

Norwest Venture Partners is a global venture and growth capital investment firm managing more than $15.5 billion in capital. Since its inception, Norwest has invested in more than 700 companies and currently partners with more than 230 companies in its venture and growth equity portfolio. The firm invests in early- to late-stage companies across key industries, with a focus on enterprise, consumer and healthcare. The Norwest team offers a deep network of connections, extensive operational experience, and a wide range of impactful services to help CEOs and founders scale their businesses. Norwest has offices in Menlo Park and San Francisco, California; Mumbai, India; and Tel Aviv, Israel. For more information, please visit www.nvp.com.

About Delos Capital

Delos Capital is a life sciences investment firm that partners with extraordinary teams pursuing breakthrough medicines that meaningfully improve the lives of patients. We are a collaborative, global team of seasoned biotech investors, business builders, operators and industry analysts, and we strive to serve the companies we invest in by bringing both capital and substantive biotech expertise. We have designed, built, financed and supported new platforms as well as approved medicines that strengthen hundreds of millions of lives around the world. Our global team is spread across offices in Cambridge, MA and across East Asia, allowing us to combine deep experiences operating at the epicenter of the global biotech enterprise with proprietary insights into innovations from emerging biotech clusters. Delos Capital currently manages three funds, with total assets under management of ~US$600 million. For more information, please visit www.deloscapital.com.

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