Zenas BioPharma has entered into a licensing agreement with China’s InnoCare Pharma worth up to USD 2 billion to develop and commercialise three autoimmune drug candidates, including a late-stage treatment for multiple sclerosis.

Under the agreement, Zenas will make upfront and near-term milestone payments of up to USD 100 million and issue up to 7 million shares of its common stock to InnoCare. The collaboration covers orelabrutinib — a Bruton’s tyrosine kinase (BTK) inhibitor currently in Phase 3 trials for multiple sclerosis — along with two early-stage assets targeting IL-17 and TYK2 pathways.

Orelabrutinib is already approved for certain blood cancers in China and Singapore. Under the new arrangement, Zenas gains exclusive rights for non-oncology indications outside Greater China and Southeast Asia, while InnoCare retains rights for oncology indications.

Zenas has begun a global Phase 3 clinical trial for orelabrutinib in primary progressive multiple sclerosis (PPMS) and plans to start another for secondary progressive multiple sclerosis (SPMS) in early 2026. To support these initiatives, the company has launched a USD 120 million private financing round.