Tiziana Life Sciences has pointed to increased Big Pharma interest in the IL-6 pathway as justification for its decision to spin out its own candidate into a separate company.
In September, Tiziana announced that it would “pursue non-dilutive funding strategies” for TZLS-501, a dual-action monoclonal antibody targeting both membrane-bound and soluble forms of the interleukin-6 receptor (IL-6R). At the time, the biotech cited “heightened industry activity in the IL-6 pathway space, underscored by Novartis’ recent acquisition of Tourmaline Bio for approximately $1.4 billion.”
This morning, Tiziana revealed that it will be going a step further—moving to set up a “publicly listed immunology-focused spinout company, centered on the IL-6 market.”
The final details are still being worked out, with the date for the new company’s launch to be unveiled “in the coming weeks.” Tiziana’s existing shareholders will still benefit from TZLS-501’s potential success via the offer of shares in the spinout.
Tiziana licensed TZLS-501 from Novimmune back in 2017 but has yet to take the therapy into the clinic. As well as blocking IL-6R signaling, Tiziana has also touted TZLS-501 as reducing circulating IL-6 cytokines, which are drivers of inflammation, lung damage and chronic fibrosis.
Tiziana’s aim had been to explore TZLS-501 either as a monotherapy or in combination with foralumab and other anti-inflammatory and anti-infective agents.
With the spinout set to take TZLS-501 forward, Tiziana’s main focus will remain foralumab, an anti-CD3 monoclonal antibody in phase 2 development as a nasal treatment for multiple sclerosis.
Interleukin-6 is a proinflammatory cytokine that has shown potential for both cardiovascular disease, such as Tourmaline’s pacibekitug, as well as eye disease, such as Roche’s Actemra.
Tiziana’s CEO Ivor Elrifi returned to the example of Novartis’ Tourmaline deal in September to back up his belief that IL-6 remains a hot ticket.
“The recent Novartis acquisition of Tourmaline Bio for $1.4 billion highlights the tremendous value and strategic importance of IL-6 pathway therapeutics in addressing systemic inflammation and related diseases,” Elrifi said in a Dec. 2 release.
“Building on our September announcement to advance TZLS-501, we believe now is the ideal time to position this promising asset as a standalone entity,” the CEO continued. “TZLS-501's unique dual mechanism—blocking IL-6R signaling while reducing circulating IL-6 cytokines—offers significant potential as a monotherapy or in combination with other agents.”