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Tag: SIOX

  • Sio Gene Therapies Inc. (SIOX) Plunges to New Lows on Terminating License Agreement for its Lead Gene Therapy Programs

    Shares of Sio Gene Therapies Inc. (SIOX) are plunging down in the premarket today, on April 28, 2022. So far, SIOX stock has declined by 34.54% registering a new low of $0.3947 in the premarket against its previous 52-week low of $0.5401. This downward move comes after a slight gain of 2.20% in yesterday’s trading which had the stock valued at $0.6030 at the close.

    The reason for the current downfall is yesterday’s corporate updates which brought forth some concerning news.

    Source: CHBO

    SIOX’s Corporate Update

    Yesterday, the company said that it has sent a notice to the University of Massachusetts for terminating its licensing agreement for developing and commercializing its gene therapy product candidates. The licensing agreement also covered its lead gene therapy products AXO-AAV-GM1 and AXO-AAV-GM2 for GM1 and GM2 gangliosidosis including Tay-Sachs and Sandhoff diseases.

    Furthermore, the company also said that as of March 31, its cash balance was $64 million and hence it plans to explore various strategic alternatives for increasing stockholder value. It is considering various options like company sale, merger, business combination, etc. For the purpose of the review, SIOX is working with SVB Securities as its financial advisor.

    Additionally, the update also included plans for headcount reduction and wind-down of all trials related to the programs.

    What’s going on??

    In a run for reserving cash and reducing operating expenses, the company has terminated its lead gene therapy program’s license agreement. Not only this but it has also decided to wind down all related clinical trials and manufacturing operations.

    It was only in January that the company announced a portfolio prioritization with a focus on the GM1 and GM2 programs. It all came falling down when the company’s previous CEO left in January while earlier chief R&D officer had also left and thus, the prioritization was a means for extending its cash runway. The new interim CEO, David Nassif had then shared his expectations for the GM1 and GM2 programs that were said to bring meaningful value.

    What Does This Mean for SIOX?

    It seems the company is going through some real tumulus times as it has slowly ceased all R&D activities. After narrowing its portfolio to only the GM1 and GM2 programs, it has now even halted those. On top of this, it is also reducing headcount to conserve capital. Unless SIOX brings about a successful outcome from the review process to rise from the ashes like a phoenix, its future is seemingly very bleak.

  • Sio Gene Therapies Inc. (SIOX) stock Sinks After Hours Following Corporate Updates

    Sio Gene Therapies Inc. (SIOX) stock Sinks After Hours Following Corporate Updates

    On January 31, Sio Gene Therapies Inc. (SIOX) announced corporate updates of the company and its programs. Consequently, the stock sank in the after-hours on Monday.

    In the regular session, SIOX stock remained in the green with a gain of 9.35%. The stock closed the session at $1.17 after reaching a high of $1.20 during the session. Following the announcement, SIOX plunged down by 11.11% in the after-hours. Therefore, the stock was trading at $1.04 apiece in the after-hours on Monday.

    The clinical-stage biopharmaceutical company, Sio Gene Therapies Inc. has a market capitalization of $78.63 million. Currently, the company has 73.49 million outstanding shares in the market.

    SIOX Corporate Updates

    As per Monday’s announcement, the company has undergone some changes and plans on further changes in the near future.

    SIOX has shifted its program prioritization towards AXO-AAV-GM1 and AXO-AAV-GM2. These two are the company’s clinical-stage AAV gene therapy programs for GM1 and GM2 gangliosidosis (Tay-Sachs/Sandhoff disease). Subsequently, the company plans to end its licensing agreement for AXO-Lenti-PD with Oxford Biomedica. AXO-Lenti-PD is the company’s lentiviral gene therapy program for Parkinson’s disease. As a result of this prioritization, the company’s cash runway has now been extended into the second half of 2023.

    Moreover, due to the resignation of SIOX’s CEO, Dr. Pavan Cheruvu, the company has appointed its CFO as interim CEO and member of the Board. Thus, David Nassif, J.D., who is the company’s CFO and General Counsel will serve as its interim CEO along with being its board member. Presently, the company is evaluating both external and internal candidates for the position of its permanent CEO.

    SIOX Fiscal Q2 2021

    On November 12, the company reported its financial results for fiscal Q2 2021, which ended on September 30, 2021.

    In fiscal Q2 2021, the company suffered from a net loss of $21.2 million, against $10.0 million in the year-ago quarter. Resultantly, the net loss per basic and diluted share was $0.29 and $0.21 in fiscal Q2 of 2021 and 2020, respectively.

    In addition, fiscal Q3 2021 results are expected to be declared on February 11, 2022.

    Conclusion

    According to the recent corporate updates, SIOX has extended its cash runway but it comes at a cost. The company has decided to end its agreement with Oxford Biomedica and focus on its AXO-AAV GM1 & GM2 programs. Additionally, the resignation of the company’s CEO has left investors disappointed. Thus, the stock tanked in the after-hours when the news came out while it was in the green during the regular session on the same day.