Lonnie Moulder’s latest biotech has secured some new cash to expand its work in autoimmune diseases.
The startup, Zenas BioPharma, closed a $200 million Series C and will use the money to fund clinical trials for its lead program, obexelimab. Zenas is testing the drug in Phase 3 for IgG4-related disease — which can cause tumor-like growths on some organs — and in Phase 2 for multiple sclerosis, systemic lupus erythematosus and warm autoimmune hemolytic anemia.
Moulder, a longtime biotech exec who previously sold MGI Pharma to Eisai for $3.9 billion and Tesaro to GSK for $5.1 billion, is leading Zenas as CEO after Hua Mu retired.
Immunology is enjoying a surge of interest from venture capitalists and drug developers. Much of the recent excitement centered around the promising application of cell therapy in severe lupus patients from a small academic trial in 2022. Since then, several cell therapy biotechs have either partially or fully pivoted toward using CAR-T for autoimmune conditions, and a handful of large pharma companies are also testing treatments.
Obexelimab is a monoclonal antibody designed to be administered weekly. Like many cell therapies, it targets CD19. But Moulder hopes it can provide a better safety profile.
CAR-Ts “are a way to deeply deplete B cells in the systemic circulation, but also in tissue,” Moulder said in an interview with Endpoints News, and other antibodies don’t deplete B cells in tissue as effectively. Obexelimab’s weekly dosing, meanwhile, allows for continuous inhibition and it can be paused if a patient, for example, needs to receive a vaccination.
While Moulder said he believes cell therapy will play a role in treating autoimmune conditions, there are obstacles. Patients need to go to specialized clinics, while Zenas hopes to commercialize obexelimab with an auto-injector if it receives FDA approval so patients can self-administer.
Giving it another try
Obexelimab came to Zenas from Xencor, which originally positioned the drug as its lead program but sold it in 2021 after a failed Phase 2 lupus study.
Zenas’ lead indication, IgG4-related disease, is a condition with relatively new classification, Moulder said. It was first identified about 20 years ago, and the American College of Rheumatology and European League Against Rheumatism issued the first diagnostic criteria in 2019.
Ultimately, Zenas intends to bring the drug to market in the US and Europe while outlicensing commercialization efforts in other regions like Asia.
Such efforts are already underway, as Zenas signed a deal with Bristol Myers Squibb to market obexelimab in Japan, South Korea and Australia, among others. Zenas also maintains a team in Shanghai that’s been around since the company was founded.
SR One, NEA, Norwest Venture Partners and Delos Capital led the Series C. Zenas also saw “significant participation” from Enavate Sciences and Longitude Capital, according to a press release.
Editor’s note: This article has been updated to correct that Moulder was discussing other antibodies being unable to get into tissue, rather than obexelimab.