Surrozen and TCGFB, Inc. Announce Strategic Research Collaboration to Develop TGF-β Antibodies for Idiopathic Pulmonary Fibrosis

Rhea-AI Summary

Surrozen (SRZN) has announced a strategic research collaboration with TCGFB to develop antibody therapeutics targeting TGF-β for treating idiopathic pulmonary fibrosis (IPF). Under the two-year agreement, Surrozen will provide antibody discovery services while TCGFB will retain all TGF-β product-related intellectual property. In compensation, TCGFB will pay Surrozen up to $6 million plus third-party costs and issue a warrant for up to 3,380,000 shares of TCGFB common stock at $0.0001 per share, subject to vesting conditions.

Positive

• Strategic collaboration agreement worth up to $6 million in payments
• Additional compensation through warrant for 3.38M shares of TCGFB stock
• Potential revenue stream from antibody discovery services for up to two years

Negative

• No ownership rights to developed TGF-β intellectual property
• Warrant value dependent on private company stock performance

Insights

Biotech Research Analyst

This research collaboration marks a strategic pivot for Surrozen, leveraging their antibody development expertise in a new therapeutic area. The deal structure is particularly interesting with $6 million in potential payments plus a significant equity stake through warrants for 3.38M shares of TCGFB. The TGF-β pathway is a well-validated target in fibrosis and IPF represents a substantial market opportunity with current treatments generating over $3 billion annually.

The warrant structure, with a nominal exercise price of $0.0001 per share, essentially provides Surrozen with meaningful equity ownership in TCGFB upon meeting certain milestones. While TCGFB retains IP rights, this arrangement gives Surrozen exposure to potential upside while generating near-term revenue from research services. For a company with a $43M market cap, this deal provides important validation of their platform and strengthens their financial position.

Research collaboration to leverage Surrozen’s antibody research capabilities and expertise to discover a potential first in class treatment for patients with Idiopathic Pulmonary Fibrosis

SOUTH SAN FRANCISCO, Calif., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Surrozen, Inc. (“Surrozen” or the “Company”) (Nasdaq: SRZN), a company pioneering targeted therapeutics that selectively activate the Wnt pathway for tissue repair and regeneration, today announced a strategic research collaboration with privately-held TCGFB, Inc. (“TCGFB”) to discover antibody therapeutics targeting Transforming Growth Factor Beta (TGF-β) for the potential treatment of patients with idiopathic pulmonary fibrosis (IPF).

Under the terms of the agreement, Surrozen will provide antibody discovery services for a period of up to two years. TCGFB will own all TGF-β product related intellectual property. In exchange for Surrozen’s research services, TCGFB will pay Surrozen up to $6 million in the aggregate, plus any third-party costs, and will issue Surrozen a warrant for up to 3,380,000 shares of TCGFB common stock at an exercise price of $0.0001 per share based on certain vesting conditions.

“We are excited to provide our discovery capabilities and expertise in antibody engineering to TCGFB through this strategic research collaboration,” said Craig Parker, President and Chief Executive Officer of Surrozen. “Idiopathic pulmonary fibrosis is a devastating disease, and we look forward to working with TCGFB to discover antibodies targeting TGF-β as a potential novel, first-in-class therapeutic approach to address the underlying pathology.”

About Surrozen
Surrozen is a clinical stage biotechnology company discovering and developing drug candidates to selectively modulate the Wnt pathway. Surrozen is developing tissue-specific antibodies designed to engage the body’s existing biological repair mechanisms with a current focus on severe liver and eye diseases. For more information, please visit www.surrozen.com.

About TCGFB
TCGFB is a biotechnology company founded by The Column Group. The company is focused on developing novel antibodies targeting TGF-β for the potential treatment of patients with idiopathic pulmonary fibrosis.

Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “will,” “plan,” “intend,” “potential,” “expect,” “could,” or the negative of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the research collaboration agreement with TCGFB, Inc., the potential of TGF-β to be a novel, first-in-class therapeutic approach to address IPF, Surrozen’s discovery, research and development activities, in particular its development plans for its product candidates (including anticipated clinical development plans and timelines, the availability of data and such data supporting regulatory filings necessary for commencing clinical trials, the potential for such product candidates to be used to treat human disease, as well as the potential benefits of such product candidates), the Company’s partnership with Boehringer Ingelheim, including the potential for future success-based development, regulatory, and commercial milestone payments, in addition to mid-single digit to low-double digit royalties on sales, the potential of Surrozen’s platform and proprietary technologies to overcome the limitations in pursuing the Wnt pathway as a therapeutic strategy, and the potential for the modulation of the Wnt signaling pathways to treat degenerative diseases and tissue injuries. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Surrozen and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Surrozen. These forward-looking statements are subject to a number of risks and uncertainties, including the initiation, cost, timing, progress and results of research and development activities, preclinical and clinical trials with respect to its product candidates; the Company’s ability to fund its preclinical and clinical trials and development efforts, whether with existing funds or through additional fundraising; Surrozen’s ability to identify, develop and commercialize drug candidates; Surrozen’s ability to successfully complete preclinical and clinical studies for its product candidates; the effects that arise from volatility in global economic, political, regulatory and market conditions; and all other factors discussed in Surrozen’s Annual Report on Form 10-K for the year ended December 31, 2023 and Surrozen’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (“SEC”) under the heading “Risk Factors,” and other documents Surrozen has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Surrozen presently does not know, or that Surrozen currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Surrozen’s expectations, plans, or forecasts of future events and views as of the date of this press release. Surrozen anticipates that subsequent events and developments will cause its assessments to change. However, while Surrozen may elect to update these forward-looking statements at some point in the future, Surrozen specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Surrozen’s assessments of any date after the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Investor and Media Contact:
Investorinfo@surrozen.com

FAQ

What is the value of Surrozen's (SRZN) collaboration agreement with TCGFB?

The collaboration agreement is worth up to $6 million in payments, plus third-party costs, and includes a warrant for 3,380,000 shares of TCGFB common stock at $0.0001 per share.

What is the purpose of Surrozen's (SRZN) collaboration with TCGFB?

The collaboration aims to develop antibody therapeutics targeting TGF-β for the potential treatment of idiopathic pulmonary fibrosis (IPF).

How long will Surrozen's (SRZN) research collaboration with TCGFB last?

The research collaboration agreement is for a period of up to two years.

Who will own the intellectual property rights in Surrozen's (SRZN) collaboration with TCGFB?

TCGFB will own all TGF-β product related intellectual property developed during the collaboration.