Tiziana Life Sciences Ltd (NASDAQ:TLSA) said on Tuesday it plans to spin out its anti-IL-6 receptor antibody program, TZLS-501, into a separately listed public company.
Tiziana said its decision follows rising industry interest in the IL-6 pathway, highlighted by Novartis’ $1.4 billion acquisition of Tourmaline Bio and its IL-6 inhibitor pacibekitug.
The company considers TZLS-501, an antibody that targets both membrane-bound and soluble IL-6 receptors, a potential standalone business.
“The recent Novartis acquisition … highlights the tremendous value and strategic importance of IL-6 pathway therapeutics,” CEO Ivor Elrifi said in a statement.
Positioning TZLS-501 as an independent company would allow dedicated resources for its development while Tiziana continues to prioritize its intranasal foralumab program, he added.
Shareholders would receive shares in the new entity through a distribution in specie, the company said. The transaction will require shareholder approval, and there is no certainty it will proceed.
TZLS-501 was licensed from Novimmune in 2017 and works by blocking IL-6 receptor signaling and reducing circulating IL-6 cytokines, mechanisms linked to inflammatory disease.
Tiziana said the spinout entity would be focused on the IL-6 market and remain part of the company until shareholders approve the transaction.
Foralumab, Tiziana’s lead program, is a fully human anti-CD3 antibody delivered intranasally. Fourteen patients with non-active secondary progressive multiple sclerosis have been treated in an expanded access program, with either stability or improvement observed at six months. The therapy is also being evaluated in a Phase 2a trial.