Sio Gene Therapies Provides Corporate Update
April 27 2022 - 4:25PM
Sio Gene Therapies Inc. (NASDAQ: SIOX) today announced that it has
provided the required notice to the University of Massachusetts to
terminate its licensing agreement to develop and commercialize gene
therapy product candidates, including AXO-AAV-GM1 and AXO-AAV-GM2,
for the treatment of GM1 gangliosidosis and GM2 gangliosidosis
(including Tay-Sachs disease and Sandhoff disease), respectively.
In parallel, the Company announced that it plans to explore and
review a range of strategic alternatives focused on maximizing
stockholder value from the Company’s cash and cash equivalents of
approximately $64 million at March 31, 2022. The Company will
explore options such as the potential for a company sale, merger,
business combination, or other transactions designed to maximize
shareholder value. SVB Securities will act as Sio’s financial
advisor with respect to the strategic review process.
“After a thorough review of our ongoing programs, and given the
current public financing environment, we have decided to terminate
our GM1 and GM2 licensing agreements with UMass and wind down our
related clinical trials and manufacturing operations,” said David
Nassif, J.D., Chief Executive Officer of Sio. “We are exploring
strategic options that may more effectively maximize shareholder
value and, as a result, we are also implementing a significant
headcount reduction to conserve capital. We will support our study
investigators as they complete ongoing clinical activities and
continue supplying study drug to patients during the notice period.
We are immensely grateful for the support from the GM1, Tay-Sachs
and Sandhoff disease communities and are honored to have worked
with such amazing patients, families and physicians over the last
few years.”
Forward-Looking StatementsThis press release
contains forward-looking statements for the purposes of the safe
harbor provisions under The Private Securities Litigation Reform
Act of 1995 and other federal securities laws. The use of words
such as “believe”, “would”, “plan”, “explore”, “expect”, “intend”,
“estimate”, “may” and other similar expressions are intended to
identify forward-looking statements. For example, all statements
Sio makes regarding potential strategic alternatives focused on
maximizing stockholder value and related review process, costs
associated with its planned operating activities, headcount
reductions and capital conservation plans, expectations regarding
ability to obtain financing, expected cash burn runway, and
expectations regarding licensing and commercial agreements
including planned activities, timing, and costs associated with
wind-downs of clinical programs (including the license and
manufacturing arrangements for GM1 and GM2) are forward-looking.
All forward-looking statements are based on estimates and
assumptions by Sio’s management that, although Sio believes to be
reasonable, are inherently uncertain. All forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially from those that Sio expected.
Such risks and uncertainties include, among others, the impact of
the COVID-19 pandemic on Sio’s operations; the actual funds
required for planned operating activities, including wind-down
activities for clinical programs and exploration of strategic
alternatives; costs and risks related to headcount reductions and
capital conservation plans; the ability to explore and execute upon
strategic alternatives; the ability to efficiently wind down
clinical programs and conduct required activities during wind down
processes; the outcome of interactions with regulatory
agencies.
These statements are also subject to a number of material risks
and uncertainties that are described in Sio’s most recent Quarterly
Report on Form 10-Q filed with the Securities and Exchange
Commission on February 11, 2022, as updated by its subsequent
filings with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which it
was made. Sio undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
law.
Contacts:
Media
Josephine Belluardo, Ph.D. LifeSci Communications(646)
751-4361jo@lifescicomms.com info@siogtx.com
Investors and Analysts
David W. NassifSio Gene Therapies Inc.Chief Executive Officer;
Chief Financial Officer and General
Counseldavid.nassif@siogtx.com
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