Solid Biosciences Announces Closing of Acquisition of AavantiBio and Concurrent $75 Million Private Placement
06 Dec 2022
AcquisitionGene Therapy
CHARLESTOWN, Mass., Dec. 05, 2022 (GLOBE NEWSWIRE) -- Solid Biosciences Inc. (Nasdaq: SLDB), a life sciences company focused on advancing meaningful therapies for Duchenne muscular dystrophy (Duchenne), today announced the closing of its acquisition of AavantiBio, a privately held gene therapy company focused on transforming the lives of patients with Friedreich’s ataxia and rare cardiomyopathies, including its pipeline assets and net cash. The combined company will focus on advancing a portfolio of neuromuscular and cardiac programs, including SGT-003, a differentiated gene transfer candidate, for the treatment of Duchenne, AVB-202, a gene transfer candidate for the treatment of Friedreich’s ataxia, AVB-401 for BAG3 mediated dilated cardiomyopathy, and additional assets for the treatment of undisclosed cardiac diseases. Bo Cumbo, the Chief Executive Officer of AavantiBio, will assume the role of President and CEO of Solid Biosciences.
Concurrent with the closing of the merger, Solid closed the previously announced $75 million private placement with a select group of institutional investors and accredited investors. The private placement was led by existing investors Perceptive Advisors, LLC, RA Capital Management and Bain Capital Life Sciences, and other new and existing investors participating in the private placement include CaaS Capital Management, Invus, Laurion Capital Management and Pura Vida Investments.
Solid’s stockholders approved the issuance of shares of Solid common stock in the transactions on December 1, 2022, along with the other proposals presented at the meeting.
Following the closing of the merger and private placement, Solid has total cash and investments of approximately $215 million. Solid expects this will be sufficient to fund the company’s planned operating expenses and capital expenditure requirements into 2025 and enable the potential attainment of key milestones for the combined company’s lead programs.
“The closing of these transactions brings together two companies committed to helping patients and innovations in gene therapy science, bolstered by the capital necessary to advance our lead programs through important developmental milestones,” said Bo Cumbo, President and Chief Executive Officer of Solid Biosciences. “We have a pipeline of assets that have the potential to offer unique value to patients, led by gene therapy programs for Duchenne muscular dystrophy, Friedreich’s ataxia and BAG3 mediated dilated cardiomyopathy. With our current cash, we expect to bring the Duchenne program, SGT-003, through to patient dosing, subject to IND clearance; the FA program, AVB-202, to an IND submission; and the BAG3 program, AVB-401, into preclinical testing. We greatly appreciate our stockholders, the Solid and AavantiBio employees and the patient communities who have supported us, and we look forward to the opportunities ahead for the next phase of Solid Biosciences.”
Cumbo continued, “On behalf of the employees and stockholders of Solid, I would like to extend my sincere thanks to Ilan Ganot for his leadership of Solid over the past nearly 10 years and his commitment to bringing innovation to patients with Duchenne and their families.”
BofA Securities acted as the sole placement agent for the private placement made to institutional investors. Wilmer Cutler Pickering Hale and Dorr LLP acted as legal counsel to Solid Biosciences. Sidley Austin LLP acted as legal counsel to AavantiBio.
About Solid Biosciences
Solid Biosciences is a life science company focused on advancing a portfolio of neuromuscular and cardiac programs, including SGT-003, a differentiated gene transfer candidate, for the treatment of Duchenne, AVB-202, a gene transfer candidate for the treatment of Friedreich’s ataxia, AVB-401 for BAG3 mediated dilated cardiomyopathy, and additional assets for the treatment of undisclosed cardiac diseases. Solid aims to be the center of excellence, bringing together those with expertise in science, technology, disease management and care. Disease-focused and founded by those directly impacted by Duchenne, Solid’s mandate is to improve the daily lives of patients living with these devastating diseases. For more information, please visit www.solidbio.com.
About SGT-003
SGT-003 is Solid's next-generation AAV gene transfer therapy candidate that utilizes a rationally designed, novel muscle-tropic AAV capsid, called AAV-SLB101, to deliver Solid’s proprietary and differentiated nNOS microdystrophin for the treatment of Duchenne. AAV-SLB101 has demonstrated enhanced muscle biodistribution and transgene expression, as well as reduced liver tropism, compared with AAV9 in in vivo mouse models and, utilizing a reporter transgene, non-human primate in vivo models. SGT-003 has correspondingly demonstrated higher levels of microdystrophin expression in vivo in the mdx mouse model of Duchenne and in vitro in human Duchenne cell lines. Solid is targeting an IND submission for SGT-003 in mid-2023.
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