Sionna Therapeutics will cut approximately 46% of its workforce and discontinue its SION-719 add-on program as it concentrates resources on a planned Phase 2a proof-of-concept trial of its SION-451 and SION-2222 dual combination for cystic fibrosis, according to a U.S. Securities and Exchange Commission filing.
The Waltham, Massachusetts-based company said its board approved the restructuring plan on Sept. 9. Sionna expects the changes to extend its cash runway while retaining clinical, regulatory, technical and corporate capabilities needed for the dual-combination program.
The workforce reduction and wind-down of relevant vendor arrangements are expected to be substantially completed by the end of the third quarter. Cash payments tied to the restructuring are expected to continue into the fourth quarter.
Sionna estimated total restructuring and related charges of about $6.4 million. That includes approximately $5.3 million for employee severance and other post-employment benefits, $700,000 for contract close-out costs tied to SION-719, and $400,000 in stock-based compensation expense. The company said the estimates could change as the restructuring proceeds.
The company announced Sept. 14 that it plans to advance SION-451 and SION-2222 into the Phase 2a trial. The SEC filing did not provide a start date, enrollment target or trial design.
As part of the restructuring, Chief Business Officer Caroline Stark Beer’s employment was terminated without cause, effective Sept. 15. Chief Medical Officer Charlotte McKee will also become head of research and development; Chief Financial Officer Elena Ridloff will add the chief business officer title; and Chief Legal Officer Jennifer Fitzpatrick will become head of program management.
Sionna also approved a repricing of certain employee stock options, effective Sept. 17, for employees remaining after the reduction in force.
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