Surrozen sets its sights on ophthalmology after binning liver programme

Surrozen Pivots to Ophthalmology, Secures $175M Funding

Strategic Shift

Surrozen Inc. has announced a major strategic shift, focusing its efforts on developing treatments for severe eye diseases using its Wnt pathway modulation technology2 6. This move comes after the company decided to discontinue the development of SZN-043 for severe alcohol-associated hepatitis due to insufficient early clinical benefit2 6.

New Funding

To support this new direction, Surrozen has secured an oversubscribed $175 million private placement2 6. The funding will be used to advance multiple ophthalmology programs through Phase 1 studies2 6.

Key Ophthalmology Programs

Surrozen's ophthalmology pipeline includes:

1. SZN-8141 (Fzd4/VEGF):
Targeting retinopathies2 6

2. SZN-8143 (Fzd4/VEGF/IL-6):
Targeting retinopathies2 6

3. SZN-413:
In collaboration with Boehringer Ingelheim for retinal diseases2 6

These candidates aim to treat conditions such as Age-Related Macular Degeneration (AMD), diabetic retinopathy, and other severe eye diseases2 6.

Funding Structure

The $175 million private placement is structured in two tranches:

1. Initial closing:
Approximately $70 million (expected around March 26, 2025)2 6

2. Second tranche:
Roughly $105 million (contingent on FDA clearance for SZN-8141's IND, anticipated in 2026)2 6

Market Impact

This strategic pivot and substantial funding have generated interest in the biotech community. Analysts have set price targets for Surrozen ranging from $32 to $45 per share6.

Looking Ahead

Surrozen's focus on ophthalmology represents a promising approach to addressing unmet needs in severe eye diseases. The company's combination of Wnt signaling modulation with clinically validated targets positions it to potentially offer new treatment options for patients suffering from various retinal conditions2 6.

Sources:

2. https://www.nasdaq.com/articles/surrozen-inc-prioritizes-ophthalmology-pipeline-175-million-financing-and-discontinues-szn

6. https://www.investing.com/news/company-news/surrozen-shifts-focus-to-eye-disease-treatments-secures-175m-funding-93CH-3944739