Client Zenas BioPharma and Royalty Pharma Enter Funding Agreement for Up to $300 Million

Ropes & Gray advised Zenas BioPharma in securing up to $300 million in funding from Royalty Pharma in exchange for a 5.5 percent royalty on worldwide net sales of lead autoimmune candidate obexelimab in partnered geographies. The financing was announced on September 2.

The agreement includes an initial $75 million payment to fund the potential U.S. commercial launch of obexelimab, a bifunctional monoclonal antibody designed to inhibit B cell function, for treatment of Immunoglobulin G4-Related Disease (IgG4). Three additional $75 million payments are contingent on achieving success criteria in the Phase 3 INDIGO clinical trial, FDA approval for IgG4-Related Disease Treatment, and FDA approval for systemic lupus erythematosus treatment.

The Ropes & Gray team was led by life sciences licensing partner Hannah England and life sciences licensing associates Nicole Rohr and Manish Namireddy and included finance partner Stefanie Birkmann, strategic transactions associate Ryan Kramer and finance associate Kevin Schoonveld.