Why Is Tiziana Life Stock Falling In Pre-market?

(RTTNews) - Tiziana Life Sciences (TLSA) announced that it intends to develop its fully human anti-IL-6 receptor monoclonal antibody, TZLS-501, and related assets via a spinout into a separate publicly traded company. The company said Tiziana shareholders at the record date will retain value from TZLS-501 through the distribution in specie of shares in the new TZLS-501 listed entity. Tiziana Life Sciences considers TZLS-501 as having the potential to be a standalone business. The company intends to proceed with steps for a publicly listed immunology-focused spin-out company, centered on the IL-6 market.

"This spin-out will unlock dedicated resources for its development, while allowing us to maintain focus on intranasal foralumab as our lead program," Ivor Elrifi, CEO of Tiziana Life Sciences, said.

Shares of Tiziana Life Sciences are down 7% in pre-market trade on Tuesday.

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