Benzinga | Nov 22, 2021 07:07AM EST

Xencor Outlicenses Autoimmune Disease Candidate To Zenas BioPharma

* Zenas BioPharma has acquired from Xencor Inc (NASDAQ:XNCR) exclusive worldwide rights to develop, manufacture, and commercialize obexelimab.

* Obexelimab is a potential first-in-class bifunctional antibody that targets CD19 with its variable domain. It uses Xencor's XmAb Immune Inhibitor Fc Domain to target Fc?RIIb, a receptor that inhibits the function of B-cells, which are essential components in the immune system.

* Under the terms of the new agreement, Zenas will issue a warrant giving Xencor the right to acquire additional Zenas equity, such that Xencor's total equity in Zenas would be 15% after Zenas' next round of equity financing.

* Xencor previously received equity in Zenas under a separate license agreement. Xencor is also eligible to receive up to $480 million milestone payments.

* Related: Novartis Dumps Another Bispecific Candidate From Xencor Deal.

* Price Action: XNCR shares closed lower by 0.30% at $36.86 on Friday.