Surrozen, Inc. (SRZN): Business Model Canvas [11-2024 Updated]

Surrozen, Inc. (SRZN) is pioneering the field of biopharmaceuticals with its innovative approach to Wnt pathway therapeutics, aiming to transform treatment paradigms for severe diseases. This blog post delves into the Business Model Canvas of Surrozen, illustrating how its strategic partnerships, robust research activities, and unique value propositions position it for success in the competitive healthcare landscape. Discover how this company is navigating the complexities of drug development and commercialization to bring novel therapies to patients in need.

Surrozen, Inc. (SRZN) - Business Model: Key Partnerships

Collaboration with Boehringer Ingelheim for SZN-413 development

In October 2022, Surrozen, Inc. entered into a Collaboration and Licensing Agreement (CLA) with Boehringer Ingelheim International GmbH (BI) to develop and commercialize Fzd4 bi-specific antibodies, including SZN-413. In September 2024, BI decided to advance the development of SZN-413, triggering a milestone payment of $10.0 million to Surrozen. The initial transaction price was set at $12.5 million, which included a non-refundable upfront payment.

Strategic alliances to enhance drug discovery

Surrozen has formed strategic partnerships to bolster its drug discovery capabilities. In October 2024, the company established a research collaboration with TCGFB, Inc. to develop antibody therapeutics targeting TGF-β for idiopathic pulmonary fibrosis. Under this agreement, Surrozen will provide services for up to $6.0 million over two years, along with potential third-party costs.

Partnerships for clinical trials and regulatory approvals

Surrozen is actively engaged in partnerships to facilitate clinical trials and regulatory approvals. The collaboration with BI not only aids in the development of SZN-413 but also encompasses regulatory support for the product candidate. The company is committed to advancing its clinical pipeline, which includes multiple novel ophthalmology product candidates.

Partnership	Objective	Financial Commitment	Milestone Payments
Boehringer Ingelheim	Development of SZN-413	$12.5 million initial transaction price	$10.0 million milestone payment (September 2024)
TCGFB, Inc.	Antibody discovery for TGF-β	Up to $6.0 million	Not specified

Surrozen, Inc. (SRZN) - Business Model: Key Activities

Research and development of Wnt pathway therapeutics

Surrozen, Inc. focuses on developing therapeutics that selectively modulate the Wnt pathway, a critical mediator of tissue repair across various organs. As of September 30, 2024, the company reported research and development expenses of $15.8 million for the nine months ended, a decrease of 25% compared to $21.1 million for the same period in 2023 . This reduction is attributed to workforce reductions implemented in 2023, allowing the company to concentrate resources on clinical stage programs, particularly SZN-043, which had associated expenses of $8.2 million .

Expense Category	2024 (Nine Months)	2023 (Nine Months)	Change (%)
SZN-043	$8.162 million	$8.520 million	-4%
SZN-1326	$1.295 million	$4.522 million	-71%
Discovery and Preclinical Programs	$6.325 million	$8.093 million	-22%
Total R&D Expenses	$15.782 million	$21.135 million	-25%

Conducting clinical trials for lead product candidates

Surrozen is actively engaged in clinical trials for its lead product candidates, particularly SZN-043 and SZN-413. The company reported a significant milestone achievement in September 2024, resulting in a recognition of $10 million in collaboration and license revenue . This milestone was achieved as part of their collaboration with Boehringer Ingelheim (BI), which further supports the advancement of SZN-413 through clinical development .

As of September 30, 2024, the company has incurred cumulative losses of approximately $257.2 million since its inception . The ongoing clinical trials are expected to incur substantial expenses, which the company anticipates will continue to grow as more candidates advance through the development phases .

Clinical Trial Milestone	Date	Revenue Recognized	Product Candidate
Milestone Achievement	September 2024	$10 million	SZN-413

Regulatory submissions and compliance management

Surrozen's regulatory strategy involves submitting applications for its product candidates to the relevant authorities to secure necessary approvals. The company continues to navigate the regulatory landscape, which is crucial for the advancement of its therapeutic candidates. The regulatory submissions are expected to incur significant costs, which will be reflected in the company's financials as they progress through each stage of development .

As of September 30, 2024, Surrozen had cash and cash equivalents of $31 million, which they believe, along with a $10 million milestone payment received in October 2024, will be sufficient to fund operations for at least the next 12 months . However, the long-term success of the company hinges on its ability to secure additional funding through various means, including public or private equity offerings, to support ongoing regulatory efforts and clinical trials .

Surrozen, Inc. (SRZN) - Business Model: Key Resources

Proprietary Wnt therapeutics platform

Surrozen, Inc. operates a proprietary Wnt therapeutics platform that focuses on selectively modulating the Wnt pathway, a critical mediator of tissue repair. This platform underpins the company's drug discovery efforts aimed at a range of indications, particularly in ophthalmology and tissue repair.

Experienced scientific and management team

Surrozen's success is driven by a team of experienced scientists and management professionals. Key personnel include:

• Dr. Craig Parker, CEO, with extensive experience in biotechnology.
• Dr. David M. Kessler, Chief Medical Officer, specializing in drug development.
• Dr. Kelly D. Burch, Chief Scientific Officer, with a strong background in Wnt signaling.

Intellectual property portfolio

As of September 30, 2024, Surrozen holds a significant intellectual property portfolio, including exclusive licenses from Stanford University and the University of California. The portfolio includes patents related to engineered Wnt surrogate molecules, which are crucial for the development of their therapeutic candidates. The financial implications of these licenses include:

License Agreement	Type	Royalty Rate	Milestone Payments
Stanford 2016 Agreement	Exclusive, sublicensable	Low single-digit percentage	Up to $0.9 million for development milestones
Stanford 2018 Agreement	Exclusive, sublicensable	Sub-single digit percentage	Up to $0.4 million for development milestones
UCSF Agreements	Exclusive licenses	N/A	N/A

As of September 30, 2024, Surrozen reported an accumulated deficit of $257.2 million and cash and cash equivalents of $31.0 million . The company continues to advance its clinical program, particularly focusing on SZN-043, with ongoing clinical studies expected to incur substantial expenses .

Surrozen, Inc. (SRZN) - Business Model: Value Propositions

Novel therapies targeting severe diseases via Wnt modulation

Surrozen, Inc. focuses on developing innovative therapies that modulate the Wnt signaling pathway, which is crucial for tissue repair and regeneration. Their lead product candidate, SZN-043, is currently in clinical trials and aims to treat various conditions such as inflammatory bowel disease (IBD) and other severe diseases. As of September 30, 2024, Surrozen reported a cash and cash equivalents balance of $31.0 million, which supports its ongoing research and development efforts.

Potential to change treatment paradigms for various conditions

Surrozen's approach to Wnt modulation offers the potential to significantly alter existing treatment paradigms. The company achieved a milestone under its collaboration and license agreement, resulting in $10.0 million in collaboration and license revenue for the three months ended September 30, 2024, compared to no revenue in the same period the previous year. This revenue is indicative of the increasing recognition and validation of their therapeutic approach.

Focus on tissue-specific therapeutics for better patient outcomes

Surrozen aims to develop tissue-specific therapeutics that can lead to improved patient outcomes. Their research and development expenses reflect a strategic pivot to focus resources on clinical-stage programs. For the nine months ended September 30, 2024, total research and development expenses were $15.8 million, down 25% from $21.1 million in the same period in 2023. This reduction in expenses is attributed to workforce reductions aimed at streamlining operations while enhancing their clinical focus.

Financial Metric	Q3 2024	Q3 2023	Change (%)
Collaboration and License Revenue	$10,000,000	$0	N/A
Research and Development Expenses	$5,200,000	$6,112,000	-15%
General and Administrative Expenses	$3,568,000	$3,572,000	0%
Net Loss	$(1,434,000)	$(10,445,000)	-86%
Cash and Cash Equivalents	$31,000,000	$34,401,000	-7%

Overall, Surrozen's value propositions are centered around innovative therapies that target significant medical needs through Wnt modulation, with a clear focus on achieving better patient outcomes via tissue-specific treatments. The company's financial performance and strategic initiatives indicate a strong commitment to advancing its unique therapeutic offerings in the biotechnology space.

Surrozen, Inc. (SRZN) - Business Model: Customer Relationships

Engagement with healthcare professionals for product education

Surrozen, Inc. actively engages healthcare professionals to provide education on its product candidates, particularly SZN-043, which is in clinical development for conditions related to tissue repair. As of September 30, 2024, the company reported collaboration and license revenue of $10 million, primarily from milestone achievements related to its products .

In the nine months ended September 30, 2024, Surrozen's total operating expenses were approximately $26.9 million, reflecting a strategic investment in educating healthcare professionals to improve product adoption .

Collaboration with research institutions for data sharing

Surrozen collaborates with various research institutions to facilitate data sharing, which is critical for advancing its clinical programs. The company has focused on partnerships that enhance its research capabilities and provide access to essential data for its product development .

For the nine months ended September 30, 2024, Surrozen incurred $15.8 million in research and development expenses, indicating a strong commitment to utilizing collaborative research data to support its clinical trials .

Support services for clinical trial participants

Surrozen offers comprehensive support services for participants in its clinical trials. This includes assistance with enrollment processes, regular communication regarding trial progress, and providing educational materials about the trial and its objectives. These initiatives are designed to enhance participant experience and retention .

As of September 30, 2024, Surrozen reported a net loss of $35.5 million, reflecting ongoing investments in participant support services and clinical trial management .

Metric	Value (2024)	Value (2023)	Change (%)
Collaboration and License Revenue	$10,000,000	$0
Total Operating Expenses	$26,947,000	$36,056,000	-25%
Research and Development Expenses	$15,782,000	$21,135,000	-25%
Net Loss	$(35,525,000)	$(34,129,000)	4%
Cash and Cash Equivalents	$31,012,000	$33,975,000	-8.6%

Surrozen, Inc. (SRZN) - Business Model: Channels

Direct partnerships with healthcare providers

Surrozen, Inc. engages in direct partnerships with healthcare providers to enhance the distribution and accessibility of its drug candidates. These partnerships are critical for the clinical trials of its products, particularly SZN-043, which is currently in ongoing studies targeting various ophthalmological conditions. As of September 30, 2024, Surrozen reported a cash balance of $31.0 million, allowing it to fund these partnerships and clinical activities effectively .

Collaboration with pharmaceutical companies for distribution

Surrozen collaborates with pharmaceutical companies to facilitate the distribution of its products. Notably, in September 2024, Surrozen recognized $10 million in collaboration and license revenue due to a milestone achievement under its collaboration agreement with Boehringer Ingelheim (BI) . This collaboration is vital as it offsets some operational costs and provides a pathway for market entry for its products, such as SZN-413.

Collaboration Partner	Type of Agreement	Milestone Payment (USD)	Potential Revenue Stream
Boehringer Ingelheim	Collaboration and License Agreement	$10,000,000	Future royalties and milestone payments
TCGFB, Inc.	Research Collaboration	Up to $6,000,000	Potential product sales, royalties

Participation in scientific conferences and publications

Surrozen actively participates in scientific conferences and publishes research findings to enhance its visibility and credibility in the biotech industry. Such participation serves as a channel to communicate its value proposition to potential partners and investors. The company's ongoing research into its product candidates, like SZN-8141 and SZN-8143, emphasizes its commitment to innovation in the field of ophthalmology.

Surrozen, Inc. (SRZN) - Business Model: Customer Segments

Patients with severe diseases affected by Wnt signaling

Surrozen, Inc. targets patients suffering from severe diseases related to Wnt signaling pathways. These include conditions such as diabetic macular edema (DME), neovascular age-related macular degeneration (wet AMD), and Fuchs' endothelial corneal dystrophy. The potential market for these indications is substantial, with the global diabetic eye disease market projected to reach approximately $6.48 billion by 2028, growing at a CAGR of 5.6%.

Healthcare providers and specialists in biopharmaceuticals

Surrozen's customer segments also include healthcare providers and specialists in the biopharmaceutical sector. The company collaborates with these professionals to facilitate the clinical development of its product candidates. As of September 30, 2024, Surrozen reported collaboration and license revenue of $10 million, reflecting the successful establishment of partnerships with healthcare entities.

Research institutions and academic collaborators

Another critical customer segment consists of research institutions and academic collaborators. Surrozen engages in strategic research collaborations, such as the agreement with TCGFB, Inc., which aims to discover antibody therapeutics. This partnership is valued at up to $6 million, plus third-party costs, highlighting the company's commitment to advancing scientific research.

Customer Segment	Target Diseases/Conditions	Market Size (Projected)	Revenue from Collaborations (2024)	Key Partnerships
Patients	Diabetic Macular Edema, Wet AMD, Fuchs' Dystrophy	$6.48 billion by 2028	N/A	N/A
Healthcare Providers	Biopharmaceutical Products	N/A	$10 million	Various healthcare entities
Research Institutions	Various Research Projects	N/A	N/A	TCGFB, Inc.

Surrozen, Inc. (SRZN) - Business Model: Cost Structure

High R&D expenditures for clinical trials and product development

Surrozen, Inc. has consistently reported significant expenditures in research and development (R&D), reflecting its commitment to advancing clinical trials and product development. For the nine months ended September 30, 2024, the total R&D expenses amounted to $15.8 million, a decrease from $21.1 million in the same period of 2023, indicating a 25% reduction year-over-year .

The breakdown of R&D expenses for the nine months ended September 30, 2024, includes:

Program	Expense (in thousands)
SZN-043	$8,162
SZN-1326	$1,295
Discovery and preclinical stage programs	$6,325
Total	$15,782

The R&D costs have been influenced by workforce reductions implemented in 2023, which aimed to focus resources on clinical stage programs .

Administrative costs associated with compliance and reporting

Administrative expenses for Surrozen are also a significant component of the company's cost structure. For the nine months ended September 30, 2024, general and administrative expenses were reported at $11.2 million, down from $12.2 million in the corresponding period of 2023. This represents a 9% decrease .

The reduction in administrative costs is primarily attributed to workforce reductions and decreased consulting and professional fees as a result of restructuring efforts .

Costs related to partnerships and collaborations

Surrozen has engaged in several partnerships and collaborations that incur associated costs. Notably, in September 2024, the company recognized a $10.0 million milestone payment from a collaboration agreement, which was added to its revenue .

In terms of operating expenses, the total costs incurred from partnerships and collaborations are reflected in the overall R&D and administrative expenses. For the three months ended September 30, 2024, Surrozen reported collaboration and license revenue of $10.0 million, which was a significant increase from $0 in the previous year .

Additionally, the company has ongoing commitments that could affect future costs, including potential royalty payments and further milestone payments depending on the progress of collaborative projects .

Surrozen, Inc. (SRZN) - Business Model: Revenue Streams

Collaboration and license revenues from strategic partners

As of September 30, 2024, Surrozen, Inc. reported collaboration and license revenue of $10 million. This revenue is attributed to the recognition of a milestone achieved under the collaboration and license agreement (CLA) with Boehringer Ingelheim (BI) . The company has historically relied on such agreements to fund its operations, as evidenced by its accumulated deficit of approximately $257.2 million .

Potential future product sales upon regulatory approval

Surrozen has several drug candidates currently in development, including SZN-043 and SZN-413. The company anticipates that successful regulatory approvals could lead to significant product sales. As of now, the company has not yet generated revenue from product sales, but it expects to begin generating sales once the products receive regulatory approval .

Milestone payments from partnerships and collaborations

In addition to collaboration revenues, Surrozen also earns milestone payments from its partnerships. For example, the company recognized a milestone payment of $10 million in October 2024, following BI's decision to advance the development of SZN-413 . The receipt of this payment was recorded as revenue on the condensed consolidated financial statements for the nine months ended September 30, 2024 .

Revenue Stream	Amount (in millions)	Details
Collaboration and License Revenue	$10.0	Revenue recognized due to milestone achievement with Boehringer Ingelheim
Milestone Payments	$10.0	Payment received from Boehringer Ingelheim for advancing SZN-413 development
Potential Future Product Sales	Undetermined	Dependent on regulatory approval of SZN-043 and other candidates

Updated on 16 Nov 2024

Resources:

1. Surrozen, Inc. (SRZN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Surrozen, Inc. (SRZN)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Surrozen, Inc. (SRZN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.