Silence Therapeutics Achieves $2 Million Research Milestone Payment from Hansoh Pharma Collaboration

Rhea-AI Summary

Silence Therapeutics (Nasdaq: SLN) has secured a $2 million payment from Hansoh Pharmaceutical following the achievement of a research milestone in their collaboration. This partnership, initiated in October 2021, focuses on developing siRNAs using Silence's mRNAi GOLD™ platform. Hansoh has already paid Silence $16 million upfront, with potential milestones totaling up to $1.3 billion. Silence holds exclusive rights to two targets globally, except in China, while Hansoh has options in the Greater China region. This latest payment marks the fourth research milestone reached under this agreement.

Positive

• $2 million payment boosts cash flow.
• Potential to earn up to $1.3 billion in milestones.
• Four research milestones achieved so far.
• Partnership with Hansoh extends Silence's market reach.

Negative

• None.

Financial Analyst

Silence Therapeutics receiving a $2 million milestone payment from Hansoh Pharma is a noteworthy financial event. This payment adds to the company's cash flow and can be seen as a small but positive increase in their liquidity. Investors should note that this payment is part of a larger potential $1.3 billion collaboration encompassing development, regulatory and commercial milestones. While today's milestone itself may not drastically shift the company's financial landscape, it does signal that the collaboration is progressing as planned and could lead to more significant payments in the future.

It's also worth noting the potential long-term benefits. The tiered royalties ranging from low double-digit to mid-teens on Hansoh's net product sales could create a recurring revenue stream, further strengthening Silence's financial position. Given the upfront payment of $16 million, these ongoing milestones serve to validate the initial investment and partnership strategy. However, investors should remain aware that biotech collaborations carry high risks and the future earnings potential is contingent upon successful development and commercialization of the siRNA targets.

Medical Research Analyst

The collaboration between Silence Therapeutics and Hansoh Pharma highlights the growing interest and potential in the field of RNA interference (RNAi) therapies. The siRNA (short interfering RNA) technology being leveraged by Silence's proprietary mRNAi GOLD™ platform targets specific genetic sequences to silence disease-causing genes, presenting a promising approach to treating genetic disorders. This milestone payment indicates that the research is making meaningful progress towards clinical application, which is a positive signal for both companies.

Investors should understand that the clinical development of siRNA therapies involves various stages, each with its own challenges and regulatory hurdles. The achievement of milestones suggests that Silence and Hansoh are successfully navigating these stages, which could accelerate the timeframe for bringing new treatments to market. Nevertheless, it's important to temper expectations, as the path from research milestone to marketable product is long and fraught with potential setbacks. Continued collaboration progress will be key in maintaining investor confidence.

LONDON--(BUSINESS WIRE)-- Silence Therapeutics plc, Nasdaq: SLN (“Silence” or “the Company”), an experienced and innovative biotechnology company committed to transforming peoples’ lives by silencing diseases through precision engineered medicines, today announced that it will receive a $2.0 million cash payment from Hansoh Pharmaceutical Group Company Limited (“Hansoh”) following the achievement of a second undisclosed milestone related to the first target under the collaboration.

“This represents an important milestone in our efforts to advance this program into the clinic with Hansoh,” said Craig Tooman, President and CEO of Silence. “This is an exciting time for Silence and our mRNAi GOLD™ platform as we continue to advance and expand our pipeline targeting a wide range of genetic diseases.”

Silence and Hansoh entered a collaboration in October 2021 to develop siRNAs (“short interfering RNAs”) leveraging Silence’s proprietary mRNAi GOLD™ platform for three undisclosed targets. Under the terms of the agreement, Silence has exclusive rights to the first two targets in all territories except the China region. Hansoh has the exclusive option to license rights to those two targets in the Greater China, Hong Kong, Macau and Taiwan, and global rights to the third target.

Hansoh made a $16 million upfront payment to Silence and the Company is eligible to receive up to $1.3 billion in development, regulatory and commercial milestones. Silence is also eligible to receive royalties tiered from low double-digit to mid-teens on Hansoh net product sales. Today’s announcement represents the fourth research milestone payment achieved under the collaboration.

About Silence Therapeutics

Silence Therapeutics is developing a new generation of medicines by harnessing the body's natural mechanism of RNA interference, or RNAi, to inhibit the expression of specific target genes thought to play a role in the pathology of diseases with significant unmet need. Silence's proprietary mRNAi GOLD™ platform can be used to create siRNAs (short interfering RNAs) that precisely target and silence disease-associated genes in the liver, which represents a substantial opportunity. Silence's wholly owned product candidates include zerlasiran designed to address the high and prevalent unmet medical need in reducing cardiovascular risk in people born with elevated levels of lipoprotein(a) and divesiran designed to address rare hematological diseases, including polycythemia vera. Silence also maintains ongoing research and development collaborations with AstraZeneca and Hansoh Pharma, among others. For more information, please visit https://www.silence-therapeutics.com/.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical facts are “forward-looking statements. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will” and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding: the expected benefits from the Company’s collaboration with Hansoh and the receipt of any milestone payments; the Company’s ability to achieve any future milestones under the collaboration; and the timing of and expectation of the Company’s ability to receive royalties. These forward-looking statements are based on the Company’s expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties that could cause the Company’s clinical development programs, future results or performance to differ materially from those expressed or implied by the forward-looking statements. Many factors may cause differences between current expectations and actual results, including: the potential that success in preclinical testing and earlier clinical trials does not ensure that later clinical trials will generate the same results or otherwise provide adequate data to demonstrate the efficacy and safety of a product candidate; the impacts of macroeconomic conditions, including the conflict in Ukraine and the conflict between Israel and Hamas, heightened inflation and uncertain credit and financial markets, on the Company’s business, clinical trials and financial position; unexpected safety or efficacy data observed during preclinical studies or clinical trials; clinical trial site activation or enrollment rates that are lower than expected; the Company’s ability to realize the benefits of its collaborations and license agreements; changes in expected or existing competition; changes in the regulatory environment; the uncertainties and timing of the regulatory approval process; and unexpected litigation or other disputes. Other factors that may cause the Company’s actual results to differ from those expressed or implied in the forward-looking statements in this press release are identified in the section titled “Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 13, 2024 as well as its other documents subsequently filed with or furnished to the SEC. The Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise, except as otherwise required by law.

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Inquiries:

Silence Therapeutics plc

Gem Hopkins, VP, Head of IR and Corporate Communications

ir@silence-therapeutics.com

Tel: +1 (646) 637-3208

Source: Silence Therapeutics plc