September 30, 2022 8:27am
Solid Biosciences (SLDB a life sciences company focused on advancing meaningful therapies for Duchenne muscular dystrophy (Duchenne) and Aavanti Bio, Inc., a privately-held gene therapy company focused on transforming the lives of patients with Friedreich’s ataxia and rare cardiomyopathies, today announced that the companies have entered into a definitive merger agreement including its pipeline assets and net cash.
SLDB will acquire AavantiBio, including its pipeline assets and net cash.
The combined company will focus on advancing a portfolio of neuromuscular and cardiac programs, led by SGT-003, a differentiated gene transfer candidate, for the treatment of Duchenne. Additional pipeline programs include 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.
Following approval by Solid stockholders, the combined company will operate as Solid Biosciences, will trade on Nasdaq under the ticker symbol “SLDB” and Bo Combo, the current Chief Executive Officer of AavantiBio, will assume the role of President and CEO of Solid Biosciences.
Combined company is expected to have approximately $215 million in cash and investments, which is expected to fund the combined company into 2025 and support attainment of key milestones for lead gene therapy programs -
AavantiBio had gutted its CMC group in a reorganization, the biotech’s CEO has helped engineer a merger with struggling penny stock player Solid Bio. And he’s going to remain in charge of the combined operation, as Solid founder Ilhan Ganot steps aside.
Perceptive Advisors, RA Capital Management and Bain Capital Life Sciences along with and other new and existing investors participating in the private placement include CaaS Capital Management, Invus, Laurion Capital Management and Pura Vida Investments are participating a $75 million raise to add to the pool of cash Solid will have after the tie-up. That will leave Solid $215 million in cash.
Bain’s Adam Koppel will assume a seat on the board.
The combined company will have a diversified pipeline across neuromuscular and cardiac diseases with indications SLDB believes are characterized by high unmet need, clear mechanistic rationale and significant market opportunities.
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