US-listed small molecule drug developer Zentalis Pharmaceuticals has spun off a China-based subsidiary called Zentera Therapeutics with $20m in series A funding.
The round was led by investment manager Tybourne Capital Management and backed by OrbiMed Asia, a fund managed by healthcare-focused investment firm OrbiMed. Zentalis retains a majority stake in Zentera.
Zentalis focuses on small molecule cancer drugs, and Zentera was established to prepare at least three of its product candidates for the Chinese market, including Zn-c5, a prospective breast cancer treatment currently in phase 1/2 trials.
The move comes after Zentalis completed a $165m initial public offering in April 2020, having previously raised $162m in funding from investors including contract research firm Pharmaron.
Anthony Sun, chairman and chief executive of Zentalis, is also CEO of the spinoff. He said: “The launch of Zentera is a key milestone in our global clinical development strategy.
“As the second-largest pharmaceutical market in the world, establishing a joint venture in China is the first step toward advancing our product candidates on a global scale. Furthermore, we are building a management team in China of seasoned professionals who are passionate about improving cancer treatment.”