Homology soars as it considers strategic options

Shares in US genetic medicines company Homology Medicines (Nasdaq: FIXX) leapt more than 35% to $1.34 last Friday, after it revealed 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 the same day,  Homology reported encouraging initial data from the first dose level in the Phase I, dose-escalation trial evaluating gene editing candidate HMI-103 in adults with classical phenylketonuria (PKU), which showed it was generally well-tolerated in all three participants and resulted in a meaningful reduction in plasma phenylalanine (Phe) in two participants as of the data cut-off date of July 26, 2023.

Despite these encouraging data, Homology said that, based on the current financing environment and the company’s anticipated clinical development timelines, it 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.