Tiziana Life Sciences Ltd (NASDAQ:TLSA) slid 7.8% in premarket trading on Tuesday after announcing that it intends to separate its anti-IL-6 receptor monoclonal antibody, TZLS-501, into an independently listed public company.
According to Tiziana, the move aims to “enhance the strategic focus of each company and to drive value for shareholders.” Investors on a to-be-determined record date will receive shares of the newly formed entity via a distribution in specie.
The decision follows Tiziana’s renewed push to advance TZLS-501, which is designed to block both membrane-bound and soluble IL-6 receptors. The company cited growing industry momentum behind IL-6 therapeutics, singling out Novartis’ recent $1.4 billion purchase of Tourmaline Bio and its IL-6 inhibitor, pacibekitug, as evidence that interest in the pathway is accelerating.
Chief Executive Ivor Elrifi underscored the trend, 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.”
Tiziana stressed that TZLS-501 will remain part of the company until shareholders vote to approve the spinout plan. More details—including the official record date—are expected to be provided in the coming weeks.
Management added that the separation would allow Tiziana to keep its core resources centered on intranasal foralumab while giving TZLS-501 a dedicated structure for clinical and strategic development. However, the company cautioned that the transaction is not guaranteed to move forward, as a public listing will depend on meeting regulatory and operational requirements.