The Sonic Fund II, L.P. Comments on Adverum Biotechnologies Update Regarding INFINITY Phase 2 Trial of ADVM-022

Rhea-AI Summary

The Sonic Fund II, L.P. owns approximately 6.8% of Adverum Biotechnologies (NASDAQ: ADVM) and criticized the Company following its announcement of a Suspected Unexpected Serious Adverse Reaction (SUSAR) in the INFINITY clinical trial for ADVM-022 gene therapy aimed at diabetic macular edema. Sonic claims this reflects a failure in the Company's development approach and loss of shareholder confidence, highlighted by a ~60% stock price drop. They urge immediate changes to the Board, proposing their independent nominees to restore trust and success in ADVM-022's development.

Positive

• Sonic Fund II's criticism indicates significant shareholder engagement.
• Urgency for Board change may lead to more qualified leadership.

Negative

• Announcement of SUSAR indicates potential safety issues with ADVM-022.
• Stock price plummeted ~60%, reflecting loss of investor confidence.
• Criticism highlights inadequate scientific development approach.

The Sonic Fund II, L.P. (“Sonic”), which beneficially owns approximately 6.8% of the outstanding common stock of Adverum Biotechnologies, Inc. (NASDAQ: ADVM) (the “Company” or “Adverum”), today commented on the Company’s April 28 announcement of a Suspected Unexpected Serious Adverse Reaction (SUSAR) of hypotony in its INFINITY clinical trial evaluating ADVM-022 gene therapy for the treatment of diabetic macular edema (DME):

“This unfortunate announcement is a stark illustration of the failure of the Company’s approach to the scientific development of ADVM-022 and shows how misguided Adverum was in not pursuing comprehensive research into the inflammatory aspect that had previously been identified with this drug. Further, this announcement exposes the hollowness of the Company’s reassurances to the market that its strategy was working. In our view, these developments validate our consistent argument that change is urgently needed at Adverum.

Adverum’s stock price reaction to the announcement – immediately plunging ~60% – clearly shows that the Company has lost the confidence of stockholders. The potential of ADVM-022 far outmatches the abilities of those entrusted with its care. Adverum must immediately refocus its efforts to the scientific development of ADVM-022 to serve critical patient needs.

We call on the Company to accept the need for an improved Board with experts who have the exact gene therapy and financial oversight experience that is essential to success moving forward. The simplest solution to the pressing need for change at the Company would be to add Sonic’s three independent and highly qualified nominees to the Board and put an end to this proxy contest.

Adverum needs the best team possible and needs it now. It certainly should not keep wasting stockholders’ money to keep world-renowned experts off the Board. And it should not be trusted to hand pick new additional directors following the Annual Meeting.

We look forward to continuing to engage with our fellow stockholders to put the Company on the best path towards successfully delivering for patients and recouping the value that has been destroyed by entrenched and unqualified individuals. The choice is clear, elect three extremely well qualified, independent nominees, or accept more of the same from a Board that has failed to deliver on its promises.”

For more information, visit https://www.saveadverum.com.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006034/en/

FAQ

What is the significance of the recent SUSAR announcement for Adverum (ADVM)?

The SUSAR announcement indicates potential safety concerns in the clinical trial for ADVM-022, impacting investor confidence and stock value.

How did the stock price of Adverum (ADVM) react to the SUSAR news?

Adverum's stock price dropped approximately 60% following the SUSAR announcement, signaling significant investor concern.

What changes are being proposed for the Adverum Board?

Sonic Fund II suggests adding three independent nominees with gene therapy and financial oversight expertise to improve leadership at Adverum.

What does Sonic Fund II believe is necessary for Adverum's future?

They argue that immediate changes in leadership and a focus on scientific development of ADVM-022 are essential for restoring stockholder value.