Zenas BioPharma Reports Third Quarter 2024 Financial Results and Provides Corporate Updates -Completed initial public offering, raising $258.7 million in gross proceeds, to fund the expanded clinical development of lead

Reports Third Quarter 2024 Financial Results and Provides Corporate Updates

public offering, raising $258.7 million in gross proceeds, to fund the expanded clinical development of lead product candidate, obexelimab,

and support company growth strategy-

enrollment of Phase 3 INDIGO trial evaluating obexelimab for the treatment of Immunoglobulin G4-Related Disease (IgG4-RD)-

obexelimab Phase 2 and Phase 3 clinical trials with results expected throughout 2025-

November 12, 2024 (GLOBE NEWSWIRE) - Zenas BioPharma, Inc. ("Zenas" or the "Company") (Nasdaq:

ZBIO), a clinical-stage global biopharmaceutical company committed to being a leader in the development and commercialization of transformative

immunology-based therapies, today reported financial results for the third quarter ended September 30, 2024, and provided recent

quarter, we successfully completed our initial public offering, providing capital to fund our growth strategy for the Company and expand

the clinical development of our lead product candidate, obexelimab, for the treatment of autoimmune diseases," said Lonnie Moulder,

Founder and Chief Executive Officer of Zenas. "With the achievement of targeted enrollment for INDIGO, the largest IgG4-RD clinical

trial ever conducted, we expect to report topline results for this registration-directed study by the end of 2025."

bifunctional monoclonal antibody designed to bind both CD19 and Fc RIIb, which are broadly present across B cell lineage, to inhibit

the activity of cells that are implicated in many autoimmune diseases without depleting them. This unique mechanism of action and chronic

dosing regimen may broadly and effectively address the pathogenic role of B cell lineage in chronic autoimmune disease.

with obexelimab, during the third quarter and more recently, the Company:

Third quarter 2024 financial results

for the quarter ended September 30, 2024

is a clinical-stage global biopharmaceutical company committed to becoming a leader in the development and commercialization of transformative

immunology-based therapies for patients in need. Our core business strategy combines our experienced leadership team with a disciplined

product candidate acquisition approach to identify, acquire and develop product candidates globally that we believe can provide superior

clinical benefits to patients living with autoimmune diseases. Zenas' lead product candidate, obexelimab, is a bifunctional monoclonal

antibody designed to bind both CD19 and Fc RIIb, which are broadly present across B cell lineage, to inhibit the activity of cells

that are implicated in many autoimmune diseases without depleting them. We believe that obexelimab's mechanism of action and self-administered, subcutaneous injection regimen may broadly and effectively address the pathogenic role of B cell lineage in chronic autoimmune disease. For more information

contains "forward-looking statements" which involve risks, uncertainties and contingencies, many of which are beyond the

control of the Company, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance,

or achievements. All statements other than statements of historical facts contained in this press release are forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as "may," "will," "should,"

"expect," "plan," "anticipate," "could," "intend," "target,"

"project," "contemplate," "believe," "estimate," "predict," "potential"

or "continue" or the negative of these terms or other similar expressions, although not all forward-looking statements contain

these words. Forward-looking statements include, but are not limited to, statements concerning Zenas's plans, objectives, expectations

and intentions; the timing and results of ongoing and future clinical trials, including expectations on the timing of reporting INDIGO

trial topline results, the 12-week primary endpoint data for the MoonStone trial, completing enrollment and reporting topline results

for the SunStone trial and reporting initial SApHiAre trial data; its growth strategy; and cash balance guidance. The forward-looking

statements in this press release speak only as of the date of this press release and are subject to a number of known and unknown risks,

uncertainties and assumptions that could cause the Company's actual results to differ materially from those anticipated in the

forward-looking statements, including, but not limited to: the Company's limited operating history, incurrence of substantial losses

since the Company's inception and anticipation of incurring substantial and increasing losses for the foreseeable future; the Company's

need for substantial additional financing to achieve the Company's goals; the uncertainty of clinical development, which is lengthy

and expensive, and characterized by uncertain outcomes, and risks related to additional costs or delays in completing, or failing to

complete, the development and commercialization of the Company's current product candidates or any future product candidates; delays

or difficulties in the enrollment and dosing of patients in clinical trials; the impact of any significant adverse events or undesirable

side effects caused by the Company's product candidates; potential competition, including from large and specialty pharmaceutical

and biotechnology companies, many of which already have approved therapies in the Company's current indications; the Company's

ability to realize the benefits of the Company's current or future collaborations or licensing arrangements and ability to successfully

consummate future partnerships; the Company's ability to obtain regulatory approval to commercialize any product candidate in the

United States or any other jurisdiction, and the risk that any such approval may be for a more narrow indication than the Company seeks;

the Company's dependence on the services of the Company's senior management and other clinical and scientific personnel,

and the Company's ability to retain these individuals or recruit additional management or clinical and scientific personnel; the

Company's ability to grow the Company's organization, and manage the Company's growth and expansion of the Company's

operations; risks related to the manufacturing of the Company's product candidates, which is complex, and the risk that the Company's

third-party manufacturers may encounter difficulties in production; the Company's ability to obtain and maintain sufficient intellectual

property protection for the Company's product candidates or any future product candidates the Company may develop; the Company's

reliance on third parties to conduct the Company's preclinical studies and clinical trials; the Company's compliance with

the Company's obligations under the licenses granted to the Company by others, for the rights to develop and commercialize the

Company's product candidates; risks related to the operations of the Company's suppliers, many of which are located outside

of the United States, including the Company's current sole contract manufacturing organization for drug substance and drug product,

WuXi Biologics (Hong Kong) Limited, which is located in China; and other risks and uncertainties described in the section "Risk

Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, as well as other

information we file with the Securities and Exchange Commission. The forward-looking statements in this press release are inherently

uncertain and are not guarantees of future events. Because forward-looking statements are inherently subject to risks and uncertainties,

some of which cannot be predicted or quantified and some of which are beyond the Company's control, you should not unduly rely

on these forward-looking statements. The events and circumstances reflected in the forward-looking statements may not be achieved or

occur and actual future results, levels of activity, performance and events and circumstances could differ materially from those projected

in the forward-looking statements. Moreover, the Company operates in an evolving environment. New risks and uncertainties may emerge

from time to time, and management cannot predict all risks and uncertainties. Except as required by applicable law, the Company does

not undertake to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information,

future events, changed circumstances or otherwise.

CONSOLIDATED STATEMENTS OF OPERATIONS

thousands except share and per share amounts)

CONSOLIDATED BALANCE SHEET DATA

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