Rare Disease Biotech Avrobio Stops Program
July 12, 2023
Rare Daily Staff
Gene therapy developer Avrobio said that it will halt further development of its programs and explore strategic alternatives focused on maximizing shareholder value following a review of its business, including the status of its programs, resources, and capabilities.
The plan “was not related to any safety or medical issues or negative regulatory feedback related to the company’s programs,” the company said in an SEC filing.
Avrobio said it will explore an acquisition, merger, business combination, or other deal. As part of the plan, Avrobio is letting half of its employees go by the end of the month with severance payments.
The company did not disclose the status of patients in ongoing clinical trials, which include a phase 1/2 trial in type 1 Gaucher disease and a phase 1/2 trial in Hunter syndrome.
In May, the company sold its cystinosis gene therapy program to Novartis for $87.5 million, retaining its programs in Gaucher disease, Hunter syndrome, and Pompe disease. At that time, the company said proceeds from the sale were expected to extend the company’s cash runway into the fourth quarter of 2024.
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