Homology Medicines (NASDAQ:FIXX) shares are up in double digits today after the gene-editing company announced it is looking at strategic alternatives to maximize shareholder value. These can include a merger, reverse merger, asset sale, partnership, acquisition, or other transactions.
The development comes fresh on the heels of the company posting promising initial data from a Phase 1 study evaluating HMI-103 for the treatment of classical phenylketonuria (PKU). The candidate was observed to be generally well tolerated in all three subjects and pointed to a meaningful decrease in plasma phenylalanine in two subjects as of the cut-off date (July 26, 2023).
Despite this promising development, Homology has decided to cease the further development of its programs owing to the present financing climate and expected clinical timelines. Additionally, the company is looking at options for HMI-103 as well and is trimming its workforce by nearly 87%.
With these steps, Homology expects to extend its cash runway until 2026. It had a cash pile of $150 million as of March 31, 2023.
Despite today’s 20% price gain, Homology shares are still down nearly 49.3% over the past year.
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