Company: ZURA
Filing Date: 2025-05-22
Form Type: CORRESP
Source: 0001104659-25-052055
Chunk: 6

Company: Zura Bio Ltd
Filing Date: 2025-05-22
Form: CORRESP
Chunk 6
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2 clinical trial evaluating tibulizumab in adults with HS, and (b) a $4.5 million milestone payment for tibulizumab incurred during the year ended December 31, 2024; |

| · | an $8.6 million decrease in costs driven by (a) a $6.7 million decrease in costs related to our other                                         
 product candidates (crebankitug and torudokimab) as we focused on advancing our Phase 2 clinical trial evaluating tibulizumab in adults       
 with SSc, while continuing to explore other potential applications where crebankitug may provide meaningful clinical and commercial benefits, 
 and monitoring external Phase 2 and Phase 3 IL-33/ST2 data in asthma and chronic obstructive pulmonary disease to inform our development      
 strategy for torudokimab, and (b) $1.9 million related to the change in fair value of the research and development license consideration      
 liability for torudokimab recorded during the year-ended December 31, 2023; and                                                               |

| · | a $2.1 million increase in personnel expenses driven by an increase of $2.9 million in expenses related                                         
 to increased personnel in research and development functions, partially offset by a decrease of $0.8 million driven by share-based compensation 
 forfeitures.                                                                                                                                    |

<div align='center'>***</div>

In addition, we anticipate
including the following enhanced explanation of the external versus internal expenses in the subsection entitled “Components of
Operating Results” or elsewhere in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
section of our periodic reports beginning with our Quarterly Report on Form 10-Q for the three months ended June 30, 2025:

Research and development expenses could include:

External Expenses:

| · | external research and development expenses incurred under agreements with CROs, investigative sites and 
 consultants to conduct our clinical trials;                                                             |

| · | costs related to manufacturing material for preclinical studies and clinical trials, including fees paid 
 to contract manufacturing organizations (“CMOs”);                                                        |

| · | milestone payments under our licensing agreements; |

| · | laboratory supplies and research materials; and |

| · | costs related to compliance with regulatory requirements. |

Internal Expenses:

| · | employee-related expenses, including salaries, bonuses, benefits, share-based compensation and other related 
 costs for those employees involved in research and development efforts.                                      |

A significant portion