Zenas BioPharma(ZBIO) upsized its IPO at pricing to 13.24 million shares (13,235,294 shares) – up from 11.76 million shares in the prospectus – and priced its IPO at $17.00 – the mid-point of its $16.00-to-$18.00 price range – to raise $225.0 million on Thursday night, Sept. 12, 2024. At pricing, Zenas BioPharma increased the IPO’s number of shares by 12.55 percent. Zenas BioPharma’s stock opened at $18.35 – up $1.35 or 7.94 percent from its $17.00 IPO price – at 12:19 p.m. EDT today – Friday, Sept. 13, 2024 – on the NASDAQ on volume of 472,727 shares.
Morgan Stanley, Jefferies, Citigroup and Guggenheim Securities were the joint book-runners.
Zenas BioPharma received a $50.0 million upfront cash payment and an equity investment from Bristol-Myers Squibb in 2023 under its multi-year collaboration agreement, the prospectus says. Bristol-Myers Squibb has licensed the rights to develop and commercialize obexelimab, Zenas BioPharma’s leading drug candidate, for treatment of autoimmune diseases in Japan, South Korea, Taiwan, Singapore, Hong Kong and Australia, according to the prospectus. The collaboration agreement calls for more licensing and royalty payments in the future if certain milestones are met.
Zenas BioPharma, based in the Boston suburb of Waltham, Massachusetts, is developing obexelimab, its leading drug candidate, as follows:
*A Phase 3 trial to treat patients with immunoglobulin G4-related disease (“IgG4-RD”)
*Planned Phase 2 trials – expected to start in the third quarter of 2024 – to treat patients with MS (multiple sclerosis) and systemic lupus erythematosus (“SLE”)
*An ongoing Phase 2/3 trial – currently in the Phase 2 open label portion – to treat patients with warm autoimmune hemolytic anemia (“wAIHA”)
Zenas BioPharma, like most biotechs when they go public, is not profitable. But Zenas does have collaboration revenue from a Big Pharma brand.
For the 12 months that ended Dec. 31, 2023, Zenas BioPharma reported a net loss of $37.12 million on collaboration revenue of $50.0 million, according to the prospectus.
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