SOUTH SAN FRANCISCO - Surrozen Inc. (NASDAQ:SRZN), a biotech firm specializing in Wnt pathway-targeted therapeutics, announced today a research collaboration with TCGFB, Inc. The partnership aims to discover antibody therapeutics for idiopathic pulmonary fibrosis (IPF), a serious lung condition. This agreement entails Surrozen providing antibody discovery services over two years, with TCGFB retaining all related intellectual property.
Under the terms, TCGFB will compensate Surrozen up to $6 million, covering third-party costs, and grant a warrant for up to 3,380,000 shares of TCGFB common stock at $0.0001 per share, subject to vesting conditions. "We are excited to provide our discovery capabilities and expertise in antibody engineering to TCGFB," stated Craig Parker, CEO of Surrozen.
Surrozen is developing tissue-specific antibodies for severe liver and eye diseases, leveraging the body's natural repair mechanisms. TCGFB, backed by The Column Group, focuses on TGF-β antibodies as potential treatments for IPF.
The companies have not disclosed specific details regarding the potential therapeutic approach's novelty or its first-in-class status. The financial terms indicate future success-based milestone payments and royalties on sales, aligning with Surrozen's existing partnership with Boehringer Ingelheim.
The collaboration is based on assumptions and expectations of Surrozen's management and is not a guarantee of future performance. The forward-looking statements in the press release reflect the company's current plans but are subject to risks, uncertainties, and changing circumstances, as detailed in Surrozen's SEC filings.
Investors and stakeholders should note that this strategic collaboration is based on a press release statement and should consider the inherent risks and uncertainties in drug development and the biotech industry.
In other recent news, biotechnology company Surrozen Inc. has extended its South San Francisco headquarters lease through April 2029, reflecting a commitment to maintain its operations in the area. This move was formalized with a lease amendment to the original agreement from 2016, granting Surrozen an option to terminate the lease early by September 2025 for a $400,000 fee.
Simultaneously, the company is making strides in its collaboration with Boehringer Ingelheim, progressing the development of SZN-413, a bi-specific antibody targeted at treating retinal vascular diseases. This advancement is triggered by successful joint research, with Surrozen set to receive a $10 million payment as per their agreement.
In addition, Surrozen recently announced the resignation of board member Tim Kutzkey, Ph.D. The company also reported positive preclinical data for its antibody-based Wnt mimetic technologies and successfully completed a Phase 1a clinical trial for its drug candidate SZN-043. Lastly, Surrozen entered a private placement agreement, securing an initial $17.5 million in funding, with potential for up to $175 million more upon warrant exercises. These are all recent developments in Surrozen's ongoing operations and research efforts.
InvestingPro Insights
Surrozen Inc.'s recent collaboration announcement with TCGFB comes amid a backdrop of significant financial metrics and market performance. According to InvestingPro data, Surrozen has seen a remarkable 105.59% price total return over the past year, with a particularly strong 72.58% return in the last three months. This upward trajectory is further evidenced by the stock trading at 81.72% of its 52-week high.
Despite these positive market indicators, InvestingPro Tips reveal that Surrozen is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may explain the company's strategic move to collaborate with TCGFB, potentially providing a new revenue stream and research opportunities.
The company's financial health shows a mixed picture. While Surrozen "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations," it is "not profitable over the last twelve months." This aligns with the article's mention of the $6 million compensation from TCGFB, which could help bolster Surrozen's financial position.
Investors should note that analysts do not anticipate the company to be profitable this year, according to InvestingPro Tips. However, with a fair value estimate of $33 per share from analyst targets, compared to the previous closing price of $13.23, there may be potential upside if the company's strategic initiatives, including this new collaboration, prove successful.
For a more comprehensive analysis, InvestingPro offers 14 additional tips for Surrozen, providing deeper insights into the company's financial health and market position.
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