Homology Medicines to reduce workforce by 87%, evaluate alternatives

Homology Medicines announced that it has completed a review of its business, and the board of directors has approved a plan to evaluate strategic alternatives to maximize shareholder value. Earlier , Homology reported initial data from the first dose level in the Phase 1, dose-escalation trial evaluating gene editing candidate HMI-103 in adults with classical phenylketonuria, which showed it was generally well-tolerated in all three participants and resulted in a meaningful reduction in plasma phenylalanine in two participants as of the data cut-off date of July 26. Despite these encouraging data, based on the current financing environment and Homology’s anticipated clinical development timelines, Homology will not be further developing its programs and will be instituting a related reduction in force while it explores options for the company and its assets, including HMI-103. Homology has retained TD Cowen as its strategic financial advisor. Homology is reducing its workforce by 87% and stopping further program development efforts outside of required actions, including continued collection of data from and monitoring of participants in its clinical trials, to significantly reduce the company’s ongoing operating costs. These measures are expected to extend Homology’s cash runway into 2026. As of March 31, Homology had approximately $150M in cash, cash equivalents and short-term investments, and the Company will provide an update in its second quarter 2023 financial results.