SOUTH SAN FRANCISCO, Calif. - Surrozen, Inc. (NASDAQ:SRZN), a biotech firm focused on tissue repair and regeneration, has been granted U.S. Patent No. 12,297,278, expanding its intellectual property portfolio in Wnt pathway modulation. The company, currently valued at $61 million, has seen its stock decline nearly 50% year-to-date, with shares trading at $7.20. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate. The new patent, part of a growing collection including six U.S. patents and 10 international patents, covers the company’s SWAP™ technology for creating multi-specific Wnt surrogate molecules.
The patent details the design of tetravalent antibodies that bind to Frizzled (Fzd) receptors and LRP5/6, which are essential elements in efficient Wnt signaling, a pathway critical for cell growth and regeneration. While advancing its technological capabilities, InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 10.02, though it faces challenges with rapid cash burn. According to the company, the technology enables selective and potent modulation of the Wnt pathway, which could have broad therapeutic applications.
Surrozen’s research has shown that inducing a simple interaction between one Fzd and one LRP is not enough for effective Wnt signaling. Instead, their technology requires multivalent binding to maximize signaling through selective surrogate Wnt molecules. The company believes that the potency and effects of these surrogates can be fine-tuned through various factors, including the valency of binders and the format of bispecific molecules.
In the ophthalmology sector, Surrozen is developing several candidates, including SZN-8141 and SZN-8143 for retinal diseases such as Diabetic Macular Edema (DME) and wet Age-Related Macular Degeneration (AMD). These candidates combine Fzd4 agonism with VEGF antagonism, potentially offering advantages over current anti-VEGF monotherapies. Preclinical models have shown that these candidates can stimulate Wnt signaling and promote normal retinal vessel regrowth while inhibiting pathological vessel growth.
Another candidate, SZN-413, also targets retinal vascular-associated diseases using the SWAP™ technology. It has demonstrated potential in preclinical studies to stimulate Wnt signaling, induce healthy retinal vessel regrowth, suppress pathological vessel growth, and reduce vascular leakage.
The company’s advancements in Wnt pathway research and product development are part of its broader strategy to harness the body’s repair mechanisms to treat severe diseases. While Surrozen expressed optimism about its intellectual property and product candidates, the press release also contained forward-looking statements that are subject to risks and uncertainties, including the outcomes of research and development activities and clinical trials.
This article is based on a press release statement from Surrozen, Inc. Analysts maintain an optimistic outlook for the company, with price targets ranging from $32 to $42, significantly above current trading levels. For deeper insights into Surrozen’s financial health and 12 additional ProTips, visit InvestingPro, where subscribers can access comprehensive analysis and valuation metrics.
In other recent news, Surrozen Inc. announced a major shift in its research and development strategy, focusing on treatments for severe eye conditions. The biotechnology firm has secured $175 million through an oversubscribed private placement to advance its ophthalmology pipeline, particularly through Phase 1 studies. This funding is structured in two tranches, with the first expected to yield approximately $70 million, and the second contingent on FDA clearance for SZN-8141’s Investigational New Drug Application, anticipated in 2026, providing roughly $105 million more. Surrozen has discontinued its SZN-043 program for severe alcohol-associated hepatitis due to insufficient early clinical benefits. The company’s ophthalmology portfolio includes promising candidates like SZN-8141 and SZN-8143, aimed at treating retinopathies such as Diabetic Macular Edema and wet Age-Related Macular Degeneration. The private placement was led by Venrock Healthcare Capital Partners and involved contributions from various life sciences investors. As part of the financing agreement, Tim Kutzkey, Ph.D., will join Surrozen’s Board of Directors. Additionally, Surrozen is collaborating with Boehringer Ingelheim on developing SZN-413, a bi-specific antibody for retinal diseases, which has shown promising preclinical results.
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