Tiziana Life Sciences to Spin Out IL-6 Drug into New Public Company, Citing Big Pharma Interest

Tiziana Life Sciences has announced plans to create a new publicly listed immunology-focused spinout company centered on its IL-6 pathway drug, TZLS-501. This strategic move comes amid heightened industry interest in interleukin-6 (IL-6) targeted therapies, exemplified by Novartis' recent $1.4 billion acquisition of Tourmaline Bio.

Strategic Spinout to Capitalize on IL-6 Market

Tiziana's decision to spin out TZLS-501 into a separate entity marks a significant shift from its previously announced strategy of pursuing non-dilutive funding for the drug's development. The company cites increased Big Pharma interest in the IL-6 pathway as the primary motivation for this move.

CEO Ivor Elrifi emphasized the strategic importance of IL-6 pathway therapeutics, stating, "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."

While the final details of the spinout are still being finalized, Tiziana has announced that existing shareholders will be offered shares in the new company, ensuring they continue to benefit from TZLS-501's potential success.

TZLS-501: A Dual-Action Monoclonal Antibody

TZLS-501, licensed from Novimmune in 2017, is a dual-action monoclonal antibody targeting both membrane-bound and soluble forms of the interleukin-6 receptor (IL-6R). The drug's unique mechanism of action not only blocks IL-6R signaling but also reduces circulating IL-6 cytokines, which are known drivers of inflammation, lung damage, and chronic fibrosis.

Elrifi highlighted the drug's potential, saying, "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."

Despite its promising profile, TZLS-501 has yet to enter clinical trials. The spinout company is expected to drive the drug's clinical development, potentially exploring its use as a monotherapy or in combination with other anti-inflammatory and anti-infective agents.

Tiziana's Future Focus

With TZLS-501 set to be developed by the new spinout, Tiziana Life Sciences will maintain its focus on foralumab, an anti-CD3 monoclonal antibody currently in phase 2 development as a nasal treatment for multiple sclerosis.

The company's strategic realignment reflects the growing importance of the IL-6 pathway in treating various inflammatory conditions and underscores the pharmaceutical industry's increasing interest in this therapeutic area. As the spinout takes shape in the coming weeks, it will likely attract significant attention from investors and potential partners in the immunology space.