2 1 Shi Ji Jing Ji Bao Dao·2025-10-10 10:55Core Viewpoint - The collaboration between domestic biotech company InnoCare (诺诚健华) and US-based Zenas BioPharma is a significant licensing deal, valued at over $2 billion, aimed at advancing InnoCare's autoimmune pipeline products internationally, particularly the core product Obexelimab [1][8]. Group 1: Financial Aspects - The total deal value exceeds $2 billion, including an upfront payment and near-term payments totaling approximately $294 million, which consists of $100 million in cash and 7 million shares of Zenas stock valued at around $194 million [8][10]. - InnoCare is also entitled to receive additional milestone payments based on clinical development, registration, and commercialization achievements, with potential royalties on net sales reaching up to 19% [8][10]. Group 2: Strategic Rationale - InnoCare chose Zenas due to its strong alignment in the autoimmune disease space, particularly in multiple sclerosis, which complements the development of Obexelimab [3][4]. - Zenas's leadership, particularly CEO Lonnie Moulder, brings extensive experience in clinical development and commercialization, enhancing the potential for successful international product development [5][6]. - The collaboration is seen as a strong partnership that could significantly increase the chances of success for Obexelimab in global Phase III clinical trials and expand its application to more autoimmune indications [4][5]. Group 3: Market Reception - Analysts from Goldman Sachs have maintained a "Buy" rating for InnoCare, raising the price targets for its Hong Kong and A-shares by 21.7% and 54.6%, respectively, indicating strong market confidence in the deal [2][1]. - Zenas has received a "Strong Buy" rating from Wall Street analysts, with an average target price of $33.25, reflecting positive sentiment regarding its potential in the autoimmune sector [6][7]. Group 4: Industry Impact - This licensing agreement sets a new record for external licensing in China's autoimmune sector, showcasing InnoCare's ability to attract international partnerships and recognition for its innovative drug pipeline [8][12]. - The successful international collaboration is viewed as a testament to the growing strength of Chinese biotech firms in the global market, enhancing confidence in the internationalization of China's biopharmaceutical industry [12].