Zenas BioPharma has secured global development and commercialization rights to orelabrutinib, a potentially best-in-class BTK inhibitor for multiple sclerosis, through a transformational license agreement with InnoCare Pharma announced October 8, 2025. The deal, valued at over $2 billion in total potential payments, positions Zenas to advance what executives describe as a "potential blockbuster franchise for progressive MS."
The agreement grants Zenas exclusive rights to develop orelabrutinib for MS globally and across all non-oncology therapeutic areas outside Greater China and Southeast Asia, while InnoCare retains global oncology rights. Orelabrutinib is a highly selective, CNS-penetrant, oral small molecule Bruton's Tyrosine Kinase (BTK) inhibitor designed to address compartmentalized inflammation and disease progression in MS.
Phase 3 Development Program Underway
Zenas has already initiated a global, Phase 3, multicenter, randomized, double-blind, placebo-controlled clinical trial evaluating orelabrutinib dosed at 80 mg once daily in patients with Primary Progressive MS (PPMS). The company plans to launch a second Phase 3 trial in Secondary Progressive MS (SPMS) patients in the first quarter of 2026. Both trials have obtained alignment from the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA).
"Orelabrutinib, with its best-in-class potential, is strongly positioned to address disease progression independent of relapse activity, the highest unmet medical need in MS, and to improve the lives of patients living with progressive MS," said Lonnie Moulder, Founder and CEO of Zenas BioPharma.
The focus on progressive MS forms addresses a critical gap in current treatment options. As Lisa von Moltke, M.D., Head of Research and Development and Chief Medical Officer of Zenas, explained: "We believe the differentiated, potentially best-in-class profile of orelabrutinib could make a meaningful difference for patients with PPMS and SPMS, which have few treatment options."
Promising Phase 2 Results Drive Confidence
The Phase 3 advancement is supported by compelling Phase 2 data in Relapsing-Remitting MS (RRMS) patients. In the completed global Phase 2 trial, orelabrutinib demonstrated significant reductions in new gadolinium-enhancing (Gd+) T1 lesions versus placebo at weeks 12 and 24, with sustained reductions in inflammatory activity maintained through week 96. The trial showed meaningful impact on endpoints indicative of disease progression.
The safety and tolerability profile of orelabrutinib proved consistent with other BTK inhibitors in MS development and has been well characterized across multiple prior autoimmune disease and hematologic cancer trials. Dr. Jasmine Cui, Co-Founder, Chairwoman and CEO of InnoCare Pharma, noted the drug's "statistically significant and clinically meaningful data from the Phase 2 trial, and promising blood-brain barrier penetration capability."
Comprehensive Financial Structure
Under the license agreement, Zenas will pay InnoCare upfront and near-term milestone payments of up to $100 million in cash, including milestone achievements expected in 2026, plus up to 7 million shares of Zenas common stock. The total potential value, including development, regulatory, and commercial milestone payments for all three licensed programs, exceeds $2 billion. InnoCare will also receive tiered royalties of up to high teens percentages on annual net sales.
To support the expanded pipeline, Zenas announced a concurrent $120 million private placement financing. The funding will issue approximately 6.3 million shares at prices of $19.00 per share for institutional investors and $20.85 per share for company directors and officers. Jefferies and Evercore ISI served as exclusive placement agents.
Expanded Pipeline Beyond Orelabrutinib
The license agreement extends beyond orelabrutinib to include two additional autoimmune candidates currently in IND-enabling studies. Zenas acquired rights to a novel oral IL-17AA/AF inhibitor that blocks both IL-17 AA homodimer and IL-17AF heterodimer signaling, as well as an oral, brain-penetrant TYK2 inhibitor. Both programs are expected to enter Phase 1 clinical development in 2026, with initial patient data from the IL-17AA/AF program anticipated in 2027.
Strategic Positioning in Autoimmune Market
The deal significantly strengthens Zenas's position as an autoimmune-focused biopharmaceutical company. The company is simultaneously advancing obexelimab, a bifunctional monoclonal antibody targeting CD19 and FcγRIIb, through Phase 3 development for IgG4-Related Disease (IgG4-RD) and Phase 2 trials for Relapsing Multiple Sclerosis and Systemic Lupus Erythematosus.
"With our two franchise programs, obexelimab concluding Phase 3 development for IgG4-RD, and now orelabrutinib for progressive forms of MS, Zenas is well positioned to meaningfully impact the lives of patients living with autoimmune diseases," Moulder stated.
The company expects to report obexelimab topline 12-week primary endpoint results from the Phase 2 MoonStone trial in RMS patients in early Q4 2025, with 24-week data following in Q1 2026. These results will inform program decisions for RMS development in early 2026.
Market Validation and Future Outlook
BTK inhibition represents a validated mechanism for treating progressive MS forms, with significant scientific interest in its potential to impact CNS-compartmentalized inflammation and disability progression independent of relapse activity. Orelabrutinib is already approved for B-cell malignancies in mainland China and Singapore, providing additional validation of its therapeutic potential.
With the private placement funding, Zenas expects sufficient cash to fund operations through Q4 2026, extending to Q1 2027 assuming receipt of a potential $75 million milestone from Royalty Pharma related to the Phase 3 INDIGO trial success criteria. This financial runway supports the aggressive development timeline for both the orelabrutinib MS program and the advancement of the two additional autoimmune candidates into clinical development.
