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Surrozen Announces an Oversubscribed $175 Million Private Placement of Securities to Focus on Selective Wnt Mimetic Therapeutics to Treat Serious Eye Diseases
SRZNSurrozen(SRZN) Newsfilter·2025-03-24 13:00

Company Focus and Strategy - The company is prioritizing its ophthalmology pipeline programs, aiming to provide new or improved treatment options for severe eye diseases [1][4] - Surrozen will focus its expertise in Wnt biology and modulation antibody technologies on ophthalmology, particularly for retinopathies [1][4] - The company has announced an oversubscribed financing of 175milliontofundmultipleophthalmologyprogramsthroughPhase1studies[1][7]ProductDevelopment−TheleadcandidatesfortreatingretinopathiesareSZN−8141andSZN−8143,whichtargetFrizzled4(Fzd4)andVascularEndothelialGrowthFactor(VEGF)pathways[2][5]−SZN−8141combinesFzd4agonismandVEGFantagonism,whileSZN−8143addsinterleukin−6(IL−6)antagonism,potentiallyofferingadvantagesoverexistingtreatments[5][6]−PreclinicaldataindicatethatbothSZN−8141andSZN−8143canstimulateWntsignaling,promotenormalretinalvesselregrowth,andsuppresspathologicalgrowth[6]DiscontinuationofOtherPrograms−ThecompanyhasdecidedtodiscontinuethedevelopmentofSZN−043forseverealcohol−associatedhepatitisduetoinsufficientearlysignalsofclinicalbenefit[3][4]FinancingDetails−Thefinancingconsistsoftwotranches:thefirstclosingwillissueapproximately6millionunitsforgrossproceedsofabout175 million to fund multiple ophthalmology programs through Phase 1 studies [1][7] Product Development - The lead candidates for treating retinopathies are SZN-8141 and SZN-8143, which target Frizzled 4 (Fzd4) and Vascular Endothelial Growth Factor (VEGF) pathways [2][5] - SZN-8141 combines Fzd4 agonism and VEGF antagonism, while SZN-8143 adds interleukin-6 (IL-6) antagonism, potentially offering advantages over existing treatments [5][6] - Preclinical data indicate that both SZN-8141 and SZN-8143 can stimulate Wnt signaling, promote normal retinal vessel regrowth, and suppress pathological growth [6] Discontinuation of Other Programs - The company has decided to discontinue the development of SZN-043 for severe alcohol-associated hepatitis due to insufficient early signals of clinical benefit [3][4] Financing Details - The financing consists of two tranches: the first closing will issue approximately 6 million units for gross proceeds of about 70 million, and the second closing will issue about 9 million units for approximately 105million[8][9]−Theprivateplacementwaspricedat105 million [8][9] - The private placement was priced at 11.60 per unit, which includes common stock and warrants [8][9] - The financing was led by Venrock Healthcare Capital Partners and includes participation from various life sciences investors [10] Collaboration and Future Prospects - Surrozen has a strategic partnership with Boehringer Ingelheim for the development of SZN-413, which targets retinal diseases [15] - The partnership includes an upfront payment of 12.5millionandpotentialmilestonepaymentstotalingupto12.5 million and potential milestone payments totaling up to 587 million [15]