SOUTH SAN FRANCISCO - Surrozen Inc. (NASDAQ:SRZN) announced on September 24, 2024, that its strategic partner, Boehringer Ingelheim, will further develop SZN-413, a bi-specific antibody aimed at treating retinal vascular diseases. This advancement is a part of their collaboration to prepare the compound for future clinical testing.
SZN-413, utilizing Surrozen's SWAP™ technology, targets the Wnt signaling pathway, which is crucial for tissue repair and regeneration. The compound has shown promise in preclinical studies, potentially stimulating Wnt signaling in the eye, encouraging normal retinal vessel regrowth, and reducing vascular leakage. These effects could potentially reverse damage caused by retinal diseases and restore retinal function.
The move to further develop SZN-413 was triggered by successful initial joint research between the two companies. As a result, Surrozen will receive a $10 million payment as stipulated in their agreement.
The partnership, which began in the fourth quarter of 2022, granted Boehringer Ingelheim an exclusive worldwide license to develop SZN-413 and related molecules. In exchange, Surrozen received an upfront payment of $12.5 million, with the potential for up to $586.5 million in milestone payments, as well as mid-single to low-double digit royalties on future sales.
Retinal vascular diseases account for a significant portion of severe and moderate vision loss worldwide, affecting approximately 150 million people. The further development of SZN-413 represents a significant step toward addressing this urgent medical need.
Craig Parker, President and CEO of Surrozen, expressed optimism about the potential of SZN-413 to offer a novel therapeutic approach for retinal disease patients.
This press release contains forward-looking statements about the future development and potential benefits of SZN-413. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
Investors and media are directed to contact Surrozen for further information based on the press release statement.
In other recent news, Surrozen, Inc., a biopharmaceutical company, announced the resignation of board member Tim Kutzkey, Ph.D., an event that does not result from disagreements over the company's operations, policies, or practices. On the research front, Surrozen reported encouraging preclinical data for its antibody-based Wnt mimetic technologies, showing potential for new treatments for corneal endothelial damage and Dry Eye Disease. The company successfully completed a Phase 1a clinical trial for its drug candidate SZN-043, which was found to be safe and well-tolerated, and is now moving into a Phase 1b proof-of-concept trial for severe alcohol-associated hepatitis. Also noteworthy is Surrozen's recent private placement agreement, set to provide an initial $17.5 million in funding, with the potential for up to $175 million more upon warrant exercises. This funding will extend the company's financial runway and expand the Phase 1b clinical trial for its severe alcohol-associated hepatitis treatment. These are recent developments that underline Surrozen's ongoing research and development efforts. The company's research suggests that its Wnt mimetic can stimulate endothelial cell proliferation in the cornea, potentially halting vision loss in conditions such as Fuchs’ Endothelial Cell Dystrophy. Surrozen's Wnt signal activating proteins (SWAP) technology is designed to mimic natural Wnt proteins, crucial for tissue repair and regeneration.
InvestingPro Insights
As Surrozen Inc. (NASDAQ:SRZN) progresses with its promising bi-specific antibody SZN-413, the financial health and performance metrics of the company are crucial for investors following the development of this potential game-changer for retinal diseases. With a market capitalization of approximately $29.49 million, Surrozen is a smaller biotech firm navigating the competitive landscape of drug development. The company's financial data, as of the last twelve months leading into Q2 2024, reveals a challenging operating environment. Surrozen's gross profit stands at a negative $27.21 million, with an operating income also in the negative at $37.55 million.
Despite these challenges, Surrozen has managed a significant return over the past week, with a 12.06% increase in share price, indicating short-term investor confidence. This performance is particularly notable given the company's lack of profitability over the last twelve months and the absence of dividend payments to shareholders. However, the company's liquid assets do exceed its short-term obligations, which could provide some financial flexibility as it continues to invest in its research and development efforts.
Investors considering Surrozen should note two InvestingPro Tips: the company holds more cash than debt on its balance sheet, suggesting a degree of financial stability. Yet, it is also quickly burning through cash, which is a common concern for biotech companies heavily invested in R&D. For those seeking a deeper dive into Surrozen's financials and future outlook, InvestingPro offers additional tips and metrics. As of now, there are six more InvestingPro Tips available at https://www.investing.com/pro/SRZN, which could provide further insights into the company's investment potential.
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