Sio Gene Therapies to Sell Arvelle Stake as Part of Angelini Pharma’s Acquisition of Arvelle Therapeutics
January 04 2021 - 8:00AM
Sio Gene Therapies Inc. (NASDAQ: SIOX), a clinical-stage company
focused on developing gene therapies to radically improve the lives
of patients with neurodegenerative diseases, announced today that
it has agreed to sell its stake in Arvelle Therapeutics to Angelini
Pharma, as part of that company’s cash acquisition of 100% of the
stock of Arvelle Therapeutics for up to $960 million. The
transaction is expected to close during the first calendar quarter
of 2021, subject to the satisfaction of customary closing
conditions.
Sio expects to receive an upfront payment of $11.8 million with
an additional $8.2 million in regulatory and sales milestone
payments, totaling up to approximately $20 million through the
share sale. These proceeds represent a substantial gain on Sio’s
initial investment in Arvelle but are not expected to result in any
income tax liabilities.
“We congratulate Arvelle, Angelini, and all of the investors in
these companies. We are proud of our role in the formation of
Arvelle and are excited to receive a significant infusion of
non-dilutive capital through this transaction. This infusion along
with our cash on hand at December 31, 2020 will support our three
clinical-stage development programs into calendar year 2022,
allowing us to continue to generate data across all of the
programs,” said David Nassif, Chief Financial Officer of Sio Gene
Therapies.
About Sio Gene Therapies
Sio Gene Therapies combines cutting-edge science with bold
imagination to develop genetic medicines that aim to radically
improve the lives of patients. Our current pipeline of
clinical-stage candidates includes the first potentially curative
AAV-based gene therapies for GM1 gangliosidosis and
Tay-Sachs/Sandhoff diseases, which are rare and uniformly fatal
pediatric conditions caused by single gene deficiencies. We are
also expanding the reach of gene therapy to highly prevalent
conditions such as Parkinson’s disease, which affects millions of
patients globally. Led by an experienced team of gene therapy
development experts, and supported by collaborations with premier
academic, industry and patient advocacy organizations, Sio is
focused on accelerating its candidates through clinical trials to
liberate patients with debilitating diseases through the
transformational power of gene therapies. For more information,
visit www.siogtx.com.
Forward-Looking Statements
This 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 “will,” “expect,” and other similar
expressions are intended to identify forward-looking statements.
For example, all statements Sio makes regarding amounts to be
received and income tax liabilities associated with the sale of its
stake in Arvelle Therapeutics, as well as the duration of its
ability to support its development programs, 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 our operations, the initiation and conduct
of preclinical studies and clinical trials; the availability of
data from clinical trials; the development of a suspension-based
manufacturing process for AXO-Lenti-PD; the scaling up of
manufacturing, the expectations for regulatory submissions and
approvals; the continued development of our gene therapy product
candidates and platforms; Sio’s scientific approach and general
development progress; and the availability or commercial potential
of Sio’s product candidates. 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 November 13, 2020, 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.
Contacts:
Media
Josephine Belluardo, Ph.D. LifeSci Communications(646)
751-4361jo@lifescicomms.cominfo@siogtx.com
Investors and Analysts
David NassifSio Gene Therapies Inc.Chief Financial Officer and
General Counsel(646) 677-6770investors@siogtx.com
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