Surrozen Announces an Oversubscribed $175 Million Private Placement of Securities to Focus on Selective Wnt Mimetic Therapeutics to Treat Serious Eye Diseases
Surrozen (NASDAQ: SRZN) announced a strategic shift to focus on ophthalmology programs, supported by an oversubscribed $175 million private placement. The funding will advance multiple eye disease treatments through Phase 1 studies.
The company's two lead candidates for retinopathies are SZN-8141 (Fzd4/VEGF) and SZN-8143 (Fzd4/VEGF/IL-6), targeting conditions like AMD, diabetic retinopathy, and other severe eye diseases. Both compounds have shown promise in preclinical models by stimulating Wnt signaling and promoting normal retinal vessel growth while inhibiting pathological vessel development.
Surrozen will discontinue the development of SZN-043 for severe alcohol-associated hepatitis, despite its safety profile, due to insufficient early clinical benefit signals. The private placement consists of two tranches: an initial $70 million closing around March 26, 2025, and a second $105 million tranche contingent on FDA clearance of the SZN-8141 IND, expected in 2026.
Surrozen (NASDAQ: SRZN) ha annunciato un cambiamento strategico per concentrarsi sui programmi di oftalmologia, supportato da un collocamento privato di $175 milioni che ha registrato una domanda superiore all'offerta. I fondi saranno utilizzati per avanzare nel trattamento di diverse malattie oculari attraverso studi di Fase 1.
I due principali candidati dell'azienda per le retinopatie sono SZN-8141 (Fzd4/VEGF) e SZN-8143 (Fzd4/VEGF/IL-6), mirati a condizioni come la degenerazione maculare legata all'età (AMD), la retinopatia diabetica e altre gravi malattie oculari. Entruni i composti hanno mostrato promettenti risultati in modelli preclinici stimolando la segnalazione Wnt e promuovendo la crescita normale dei vasi retinici, mentre inibiscono lo sviluppo di vasi patologici.
Surrozen interromperà lo sviluppo di SZN-043 per l'epatite severa associata all'alcol, nonostante il suo profilo di sicurezza, a causa di segnali di beneficio clinico iniziali insufficienti. Il collocamento privato consiste in due tranche: una chiusura iniziale di $70 milioni prevista intorno al 26 marzo 2025, e una seconda tranche di $105 milioni subordinata all'approvazione da parte della FDA dell'IND di SZN-8141, attesa nel 2026.
Surrozen (NASDAQ: SRZN) anunció un cambio estratégico para centrarse en programas de oftalmología, respaldado por un colocación privada de $175 millones que ha sido sobredemandado. La financiación se utilizará para avanzar en múltiples tratamientos para enfermedades oculares a través de estudios de Fase 1.
Los dos principales candidatos de la compañía para las retinopatías son SZN-8141 (Fzd4/VEGF) y SZN-8143 (Fzd4/VEGF/IL-6), dirigidos a condiciones como la degeneración macular relacionada con la edad (AMD), la retinopatía diabética y otras enfermedades oculares severas. Ambos compuestos han mostrado resultados prometedores en modelos preclínicos al estimular la señalización Wnt y promover el crecimiento normal de los vasos retinianos, mientras inhiben el desarrollo de vasos patológicos.
Surrozen discontinuará el desarrollo de SZN-043 para la hepatitis severa asociada al alcohol, a pesar de su perfil de seguridad, debido a señales de beneficio clínico temprano insuficientes. La colocación privada consta de dos tramos: un cierre inicial de $70 millones previsto para alrededor del 26 de marzo de 2025, y un segundo tramo de $105 millones condicionado a la aprobación de la FDA del IND de SZN-8141, que se espera para 2026.
Surrozen (NASDAQ: SRZN)은 안과 프로그램에 집중하기 위한 전략적 전환을 발표했으며, 1억 7500만 달러의 사모펀드가 초과 청약되었습니다. 이 자금은 1상 연구를 통해 여러 안과 질환 치료를 추진하는 데 사용될 것입니다.
회사의 주요 후보물질인 SZN-8141 (Fzd4/VEGF)와 SZN-8143 (Fzd4/VEGF/IL-6)는 노인성 황반변성(AMD), 당뇨병성 망막병증 및 기타 심각한 안과 질환과 같은 상태를 목표로 하고 있습니다. 두 화합물 모두 Wnt 신호 전달을 자극하고 정상적인 망막 혈관 성장을 촉진하며 병리학적 혈관 발달을 억제하는 데 있어 전임상 모델에서 유망한 결과를 보였습니다.
Surrozen은 초기 임상 이점 신호가 부족하여 안전성 프로필에도 불구하고 SZN-043의 개발을 중단할 것입니다. 사모펀드는 두 개의 트랜치로 구성되어 있으며, 첫 번째는 $7000만 달러로 2025년 3월 26일경 마감될 예정이고, 두 번째는 2026년으로 예상되는 SZN-8141 IND의 FDA 승인에 따라 $1억 500만 달러입니다.
Surrozen (NASDAQ: SRZN) a annoncé un changement stratégique pour se concentrer sur des programmes d'ophtalmologie, soutenu par un placement privé de 175 millions de dollars qui a été sursouscrit. Le financement permettra de faire avancer plusieurs traitements pour des maladies oculaires à travers des études de Phase 1.
Les deux principaux candidats de l'entreprise pour les rétinopathies sont SZN-8141 (Fzd4/VEGF) et SZN-8143 (Fzd4/VEGF/IL-6), ciblant des conditions telles que la dégénérescence maculaire liée à l'âge (AMD), la rétinopathie diabétique et d'autres maladies oculaires graves. Les deux composés ont montré des résultats prometteurs dans des modèles précliniques en stimulant la signalisation Wnt et en favorisant la croissance normale des vaisseaux rétiniens tout en inhibant le développement de vaisseaux pathologiques.
Surrozen interrompra le développement de SZN-043 pour l'hépatite sévère associée à l'alcool, malgré son profil de sécurité, en raison de signaux de bénéfice clinique précoce insuffisants. Le placement privé se compose de deux tranches : une première tranche de 70 millions de dollars prévue autour du 26 mars 2025, et une seconde tranche de 105 millions de dollars conditionnée à l'approbation de la FDA de l'IND de SZN-8141, attendue en 2026.
Surrozen (NASDAQ: SRZN) hat eine strategische Neuausrichtung angekündigt, um sich auf ophthalmologische Programme zu konzentrieren, unterstützt durch eine überzeichnete Privatplatzierung von 175 Millionen USD. Die Finanzierung wird mehrere Behandlungen von Augenkrankheiten durch Phase-1-Studien vorantreiben.
Die beiden Hauptkandidaten des Unternehmens für Retinopathien sind SZN-8141 (Fzd4/VEGF) und SZN-8143 (Fzd4/VEGF/IL-6), die auf Zustände wie altersbedingte Makuladegeneration (AMD), diabetische Retinopathie und andere schwere Augenkrankheiten abzielen. Beide Verbindungen haben in präklinischen Modellen vielversprechende Ergebnisse gezeigt, indem sie die Wnt-Signalübertragung anregten und das normale Wachstum von Netzhautgefäßen förderten, während sie die pathologische Gefäßentwicklung hemmen.
Surrozen wird die Entwicklung von SZN-043 für schwere alkoholassoziierte Hepatitis einstellen, trotz des Sicherheitsprofils, aufgrund unzureichender früher klinischer Nutzenzeichen. Die Privatplatzierung besteht aus zwei Tranchen: einem anfänglichen Abschluss von 70 Millionen USD, der um den 26. März 2025 erwartet wird, und einer zweiten Tranche von 105 Millionen USD, die von der FDA-Freigabe des SZN-8141 IND abhängt, die für 2026 erwartet wird.
- Secured substantial $175M financing to fund multiple ophthalmology programs through Phase 1 studies
- Preclinical data shows promising results for both lead candidates SZN-8141 and SZN-8143
- Strategic focus on ophthalmology market with multiple high-value indications
- Strong investor backing from prominent healthcare/biotech funds
- Discontinuation of SZN-043 program due to insufficient clinical benefit
- Second tranche of funding ($105M) contingent on FDA clearance
- Significant dilution to existing shareholders through new share issuance
Insights
Surrozen's $175 million private placement represents a transformative financing event that fundamentally changes the company's trajectory and financial outlook. This funding is approximately 4.6x the company's entire market cap of ~$38M, providing substantial runway to advance multiple ophthalmology programs through Phase 1 studies.
The financing structure—split between an initial $70 million closing and a subsequent $105 million tranche contingent on FDA clearance for SZN-8141—indicates investor confidence while establishing development milestones. The investment consortium is particularly impressive, led by Venrock Healthcare Capital Partners with participation from top-tier firms including The Column Group and RA Capital Management.
While discontinuing SZN-043 for alcohol-associated hepatitis represents a pipeline setback, management has made a strategic pivot to ophthalmology where their Wnt pathway approach targets multiple high-value indications including diabetic macular edema and wet AMD. These markets represent multi-billion dollar opportunities with established regulatory pathways.
The deal includes warrant restructuring that cleans up Surrozen's capital structure—reducing exercise prices on certain warrants while canceling others altogether. This transaction substantially de-risks Surrozen's financial position while allowing focused execution on programs with clearer development paths and potentially broader market opportunities than their previous liver-focused strategy.
Surrozen's strategic pivot to ophthalmology represents a scientifically sound approach leveraging their Wnt signaling expertise. Their lead candidates—SZN-8141 and SZN-8143—employ novel multi-modal mechanisms that could address limitations of current standards of care.
The combination of Frizzled 4 (Fzd4) agonism with VEGF antagonism in SZN-8141 is particularly promising. Current anti-VEGF therapies for diabetic retinopathy and wet AMD have transformed treatment but face challenges including durability of response and resistance development. By simultaneously activating Wnt signaling through Fzd4 while blocking VEGF, SZN-8141 could potentially stimulate healthy vessel formation while suppressing pathological angiogenesis—addressing both disease mechanisms.
SZN-8143 adds IL-6 antagonism to this approach, potentially addressing inflammatory components critical in conditions like uveitic macular edema. The preclinical data showing that both candidates stimulated normal vessel regrowth while suppressing pathological growth suggests differentiated activity from current monotherapies.
The broad applicability across multiple retinopathies—including wet/dry AMD, diabetic retinopathy, and rarer conditions like FEVR—presents multiple development pathways. The ophthalmic space offers clear regulatory precedents, well-defined clinical endpoints, and specialized delivery systems that could accelerate development timelines compared to their previous focus on acute liver disease where clinical development faces significant challenges.
Company prioritizes ophthalmology pipeline programs with potential to provide new or improved treatment options in multiple severe and disabling eye diseases
Announces an oversubscribed financing of
Company discontinues clinical development of SZN-043 in severe alcohol associated hepatitis
SOUTH SAN FRANCISCO, Calif., March 24, 2025 (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 that the company will focus its Wnt biology expertise and Wnt signal modulation antibody technologies on its ophthalmology programs including development of new treatment options for retinopathies. The Company also announced a private placement consisting of two tranches in aggregate up to
Modulation of Wnt signaling has the potential to be relevant in a broad range of highly prevalent eye diseases including “wet” and “dry” Age Related Macular Degeneration (AMD), diabetic retinopathy, Fuchs’ endothelial corneal dystrophy (FECD), and non-infectious uveitis as well as certain rare eye diseases like retinitis pigmentosa, Stargardt’s and Familial Exudative Vitreoretinopathy (FEVR). The two lead candidates for the treatment of retinopathies include SZN-8141 (Fzd4/VEGF) and SZN-8143 (Fzd4/VEGF/IL-6).
The Company will discontinue development of SZN-043 in severe alcohol associated hepatitis. While treatment with SZN-043 was safe and well-tolerated and demonstrated positive changes in liver function assays, there was not a sufficient early signal of clinical benefit to warrant further investment given the challenges associated with an acutely sick target population and a lengthy clinical development path.
“Given the significant progress and potential of our ophthalmology programs, we have decided to focus on our robust ophthalmology pipeline. Importantly, our retinal ophthalmology programs represent novel combinations of clinically validated targets for treating a broad spectrum of serious eye diseases. We look forward to advancing our proprietary ophthalmology candidates to the clinic including our collaboration with Boehringer Ingelheim to advance SZN-413 into development,” said Craig Parker, President and Chief Executive Officer of Surrozen. “Given the decision to discontinue SZN-043, we want to thank the subjects, our collaborators and the medical professionals who participated in clinical trials and helped advance our understanding of Wnt mimetics in acute liver disease."
Wholly-Owned Ophthalmology Portfolio
SZN-8141 combines Frizzled 4 (Fzd4) agonism and Vascular Endothelial Growth Factor (VEGF) antagonism which has the potential to provide benefits over treatment with single agents for Diabetic Macular Edema (DME) and neovascular Age Related Macular Degeneration (wet AMD).
SZN-8143 combines Fzd4 agonism, VEGF antagonism, and interleukin-6 (IL-6) antagonism which may have benefits over single agents for treatment of DME/wet AMD/uveitic macular edema (UME).
The current standard of care for diabetic retinopathy (including DME), retinal vein occlusion and wet AMD is intravitreal administration of anti-VEGF monotherapies. In addition, Fzd4 monotherapy has demonstrated proof of concept in clinical trials. Surrozen believes SZN-8141 and SZN-8143 have the potential to treat multiple retinopathy indications and be differentiated from existing therapies. Data generated in preclinical models of retinopathy demonstrated that both SZN-8141 and SZN-8143 stimulated Wnt signaling and induced normal retinal vessel regrowth while suppressing pathological vessel growth.
Financing Overview
The Company has entered into a securities purchase agreement with certain institutional and accredited investors to purchase shares of common stock, or pre-funded warrants in lieu thereof, and accompanying warrants to purchase shares of common stock. The private placement was priced “at-the-market” under the rules and regulations of The Nasdaq Stock Market LLC.
At the initial closing, expected on or about March 26, 2025 the Company will issue to the investors 6,034,494 units, each consisting of one share of common stock, or pre-funded warrant in lieu thereof, and one half of a common stock warrant, at a purchase price of
At the second closing, investors have committed to purchase an additional 9,051,742 units, each consisting of one share of common stock, or pre-funded warrant in lieu thereof, and one half of a common stock warrant, at a purchase price of
The financing was led by Venrock Healthcare Capital Partners and includes participation from new and existing investors, including The Column Group, Access Biotechnology, RA Capital Management, Vivo Capital, Spruce Street Capital, 5AM Ventures, Kalehua Capital, Samsara BioCapital, Acuta Capital Partners, StemPoint Capital, Braidwell LP and other leading life sciences investors. In connection with the financing, Tim Kutzkey, Ph.D. will be joining the Surrozen Board of Directors.
Guggenheim Securities, LLC is acting as sole placement agent for the private placement.
The securities being sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state, and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Surrozen has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock and shares of common stock issuable upon the exercise of the warrants issued in the private placement within 30 days of the closing.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
About SZN-413 for Retinal Diseases
SZN-413 is a bi-specific antibody targeting Fzd4-mediated Wnt signaling designed using Surrozen’s SWAP™ technology. It is currently being developed for the treatment of retinal vascular-associated diseases. Data generated by Surrozen with SZN-413 in preclinical models of retinopathy demonstrated that SZN-413 could potently stimulate Wnt signaling in the eye, induce normal retinal vessel regrowth, suppress pathological vessel growth and reduce vascular leakage. This novel approach could thus potentially allow for regeneration of healthy eye tissue, not only halting retinopathy, but possibly allowing for a full reversal of the patient’s disease.
In the fourth quarter of 2022, Surrozen entered into a strategic partnership with Boehringer Ingelheim for the research and development of SZN-413 for the treatment of retinal diseases. Under the terms of the agreement, Boehringer Ingelheim received an exclusive, worldwide license to develop SZN-413 and other Fzd4-specific Wnt-modulating molecules for all purposes, including as a treatment for retinal diseases, in exchange for an upfront payment to Surrozen of
About Surrozen
Surrozen is a 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 in ophthalmology.
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 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, 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 TGF-β to be a novel, first-in-class therapeutic to treat the pathology of Idiopathic Pulmonary Fibrosis; the anticipated initial closing of the Company’s private placement; and the anticipated second closing of the Company’s private placement, which is subject to the receipt of clearance from the FDA of the Company’s Investigational New Drug Application for SZN-8141, expected in 2026. 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 and potential future drug 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 Sits 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 September 30, 2024 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/Media Contact:
Email: Investorinfo@surrozen.com
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