Zura Bio Reports Second Quarter 2024 Financial Results and Recent Business Highlights - Presented data for tibulizumab at EULAR 2024, highlighting the potential relevance of dual-inhibition of both IL-17A and BAFF in aut

Zura Bio Reports Second Quarter 2024 Financial

Results and Recent Business Highlights

Henderson, Nev - August 13, 2024 - Zura

Bio Limited (Nasdaq: ZURA) ("Zura Bio"), a clinical stage, multi-asset immunology company developing novel dual-pathway

antibodies for autoimmune and inflammatory diseases, today reported its second quarter 2024 financial results, and recent business highlights.

"We have made meaningful progress on our

key development programs this quarter. Highlights include selecting our CRO for the Phase 2 clinical program in SSc and advancing study

start-up activities to ensure timely execution for both SSc and HS. Additionally, the tibulizumab data presented at EULAR highlighted

our dual-inhibition approach and target engagement. We are eager to demonstrate the broad potential of tibulizumab as we plan to advance

into Phase 2 studies for SSc this year and for HS in the first half of 2025," said Robert Lisicki, CEO of Zura Bio. "We are

also excited to have established a Scientific Advisory Board, composed of leading experts in rheumatology, dermatology, and immunology.

We remain committed to our mission of expanding treatment options for patients living with autoimmune disease."

RECENT BUSINESS AND FINANCIAL HIGHLIGHTS

Cash and cash equivalents: Cash and

cash equivalents were $188.4 million as of June 30, 2024, as compared to $99.8 million as of December 31, 2023.

Zura Bio anticipates that its existing cash and cash equivalents and investments should be sufficient to support operations as currently

planned through 2027.

Research and Development (R&D) expenses:

R&D expenses were $5.5 million for the second quarter of 2024, a decrease of $22.7 million compared to $28.2 million for the same

period in 2023. The decrease was primarily due to $27.2 million related to the acquisition of tibulizumab from Eli Lilly and Company ("Lilly")

during the three months ended June 30, 2023. This decrease was partially offset by an increase of $1.5 million in expenses related to

compensation for personnel in R&D functions including share-based compensation and an increase of $2.3 million of costs incurred for

consulting services and manufacturing of product candidates, in addition to an increase of $0.7 million for an annual milestone payment

related to the 2023 Lilly License incurred during the three months ended June 30, 2024.

General and Administrative (G&A) expenses:

G&A expenses were $6.2 million for the first quarter of 2024, an increase of $0.5 million compared to $5.7 million for the same period

in 2023. The increase was primarily due to increases of $0.4 million in expenses related compensation for personnel in executive and administrative

functions including share-based compensation, as well as an increase of $0.1 million in professional fees for legal and accounting costs

incurred related to ongoing operations as a public company, as well as travel and office expenses.

Net loss: Net loss for the second quarter

of 2024 was $12.7 million or $0.17 per share compared to $44.9 million or $1.31 per share for the same period in 2023.

RECENT AND UPCOMING ANTICIPATED MILESTONES

Tibulizumab, a humanized bispecific dual

antagonist antibody that neutralizes both IL-17A and BAFF, is expected to enter Phase 2 clinical development for the treatment of SSc

Crebankitug, also known as ZB-168, is a

high-affinity, fully human monoclonal antibody that neutralizes the IL-7 receptor alpha (IL-7R ) chain, potentially blocking the

immune pathways of IL-7 and thymic stromal lymphopoietin (TSLP). Zura Bio is monitoring external read-outs of other companies relating

to IL-7R inhibitors in conditions such as ulcerative colitis (UC), atopic dermatitis (AD), and alopecia areata (AA). Zura Bio expects

to utilize data from anticipated external readouts to help inform its initial indication selection for crebankitug by the end of 2024,

with ongoing indication planning for other potential areas of unmet need.

Torudokimab is a fully human, high affinity

monoclonal antibody that neutralizes IL-33, preventing ST2-dependent and ST2-independent (e.g., RAGE) inflammation. Zura Bio is actively

monitoring Phase 2 and Phase 3 IL-33 external data releases from other companies related to asthma and chronic obstructive pulmonary disease.

Zura Bio is a clinical-stage, multi-asset immunology

company developing novel dual-pathway antibodies for autoimmune and inflammatory diseases. Currently, Zura Bio is developing three assets

which have completed Phase 1/1b studies and are Phase 2 ready. The company is developing a portfolio of therapeutic indications for tibulizumab

(ZB-106), crebankitug (ZB-168), and torudokimab (ZB-880), with a goal of demonstrating their efficacy, safety, and dosing convenience

in autoimmune and inflammatory diseases, including systemic sclerosis and other novel indications with unmet needs.

FORWARD-LOOKING STATEMENTS

This communication includes "forward-looking

statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate,"

"intend," "plan," "may," "will," "could," "should," "believe,"

"predict," "potential," "continue," "strategy," "future," "opportunity,"

"would," "seem," "seek," "outlook," "goal," "mission," and similar

expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other

statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties

that could cause the actual results to differ materially from the expected results. These statements are based on various assumptions,

whether or not identified in this communication. These forward-looking statements in this release include, but are not limited to, statements

regarding: Zura Bio's forecasts, including with respect to its cash resources, and Zura Bio's expectations regarding funding,

operating and working capital expenditures, business strategies and objectives; expectations with respect to data readouts and the timing

thereof; Zura Bio's product candidates, clinical trials and the design and timing thereof, statements with respect to the potential

of product candidates; and expectations with respect to Zura Bio's development program, including clinical trials and the timing

thereof, and expectations with respect to development programs, data readouts and product candidates of other parties. These forward-looking

statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by an investor as,

a guarantee, an assurance, a prediction or a definitive statement of fact or probability.

Actual events are difficult or impossible to

predict and could differ materially from those expressed or implied in such forward-looking statements, as a result of these risks

and uncertainties, which include, but are not limited to: the potential of Zura Bio's product candidates and their related benefits,

competing product candidates and products both in development and approved; Zura Bio's vision and strategy; the timing of key events

and initiation of Zura Bio's studies and release of clinical data may take longer than anticipated or may not be achieved at

all; the potential general acceptability and maintenance of Zura Bio's product candidates by regulatory authorities, payors,

physicians, and patients may not be achieved; Zura Bio's ability to attract and retain key personnel; Zura Bio's future operating

expenses, capital requirements and needs for additional financing may not be achieved; Zura Bio has not completed any clinical

trials, and has no products approved for commercial sale; Zura Bio has incurred significant losses since inception, and expects to

incur significant losses for the foreseeable future and may not be able to achieve or sustain profitability in the future; Zura Bio

requires substantial additional capital to finance its operations, and if it is unable to raise such capital when needed or on

acceptable terms, Zura Bio may be forced to delay, reduce, and/or eliminate one or more of its development programs or future

commercialization efforts; Zura Bio may be unable to renew existing contracts or enter into new contracts; Zura Bio relies on

third-party contract development manufacturing organizations for the manufacture of clinical materials; Zura Bio relies on contract

research organizations, clinical trial sites, and other third parties to conduct of its preclinical studies and clinical trials;

Zura Bio may be unable to obtain regulatory approval for its product candidates, and there may be related restrictions or

limitations of any approved products; Zura Bio may be unable to successfully respond to general economic and geopolitical

conditions; Zura Bio may be unable to effectively manage growth; Zura Bio faces competitive pressures from other companies

worldwide; Zura Bio may be unable to adequately protect its intellectual property rights; and other factors set forth in documents

filed, or to be filed by Zura Bio, with the SEC, including the risks and uncertainties described in the "Risk Factors"

section of Zura Bio's Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the SEC. These risks

and uncertainties may be amplified by health epidemics or other unanticipated global disruption events, which may continue to cause

economic uncertainty. Zura Bio cautions that the foregoing list of factors is not exclusive or exhaustive and not to place undue

reliance upon any forward-looking statements, which speak only as of the date made. Zura Bio gives no assurance that it will achieve

its expectations. Zura Bio does not undertake or accept any obligation to update any forward-looking statements, except as required

Head of Investor Relations

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