–Sanofi to invest $40 million at a conversion price of $7.44 per common share–
– Sanofi receives exclusive first refusal rights to license the Company’s small molecule TREM2 agonist programs, including VG-3927, currently in Phase 1 clinical trials –
– The company expects the proceeds to extend its cash runway through 2026 –
WATERTOWN, Mass., June 27, 2024 (GLOBE NEWSWIRE) — Vigil Neuroscience, Inc. (Nasdaq: VIGL), a clinical-stage biotechnology company working to harness the power of microglia to treat neurodegenerative diseases, announces that Sanofi (Nasdaq: SNY) has made a strategic investment in the Company of $40 million at a conversion price of $7.44 per common share. Sanofi will purchase 537,634 shares of the Company’s Series A non-voting preferred stock, each convertible into 10 common shares. The Company will use the proceeds to fund research and development activities.
“We are thrilled to receive this strategic investment from Sanofi, a leading global biopharmaceutical company, in our research and development program,” said Ivana Magovčević-Lieviš, PhD, JD, President and Chief Executive Officer of Vigil. “We view Sanofi’s investment in Vigil as a validation of our promising precision medicine approach centered around our two differentiated TREM2 modalities, Ilzanevert and VG-3927, and Sanofi has provided valuable capital to help fund our pipeline. We look forward to the opportunity to collaborate with Sanofi as we continue to advance our small molecule TREM2 agonist program.”
“Recent discoveries have highlighted the role of microglial signaling and neuroinflammation in neurodegenerative diseases, and TREM2 is a well-recognized microglial target in this context,” said Erik Wallstroem, global head of neurology development at Sanofi. “Our investment in Vigil strengthens our commitment to immune science and neuroimmunology.”
In connection with the equity investment, Vigil has granted Sanofi an exclusive right of first refusal (ROFN) to exclusively license, grant or transfer the rights to research, develop, manufacture and commercialize the Company’s small molecule TREM2 agonist program, including clinical candidate VG-3927, which is currently being evaluated in Phase 1 clinical trials as a potential treatment for Alzheimer’s disease.
Based on current projections, the company expects its cash runway to extend through 2026, driven by returns from Sanofi’s investment.
About Vigil Neuroscience
Vigil Neuroscience is a clinical-stage biotechnology company focused on developing therapies for both rare and common neurodegenerative diseases by restoring the vigilance of microglia, the brain’s surveillance immune cells. Vigil leverages the latest neuroscience drug development tools across multiple therapeutic modalities as it works to develop precision-based therapies to improve the lives of patients and their families. Vigil’s lead clinical candidate, Iluzanebart, is a fully human monoclonal antibody agonist targeting human triggering receptor expressed on myeloid cells 2 (TREM2) in patients with adult-onset leukoencephalopathy with axonal spheroids and pigmented glia (ALSP), a rare and fatal neurodegenerative disease. Vigil is also developing VG-3927, a novel small molecule TREM2 agonist, to treat common neurodegenerative diseases associated with microglial dysfunction, initially focusing on genetically defined subpopulations of Alzheimer’s Disease (AD).
Forward-Looking Statements
This press release contains certain disclosures, made pursuant to the safe harbor provisions of the federal securities laws, that contain “forward-looking statements” about Vigil Neuroscience (“Vigil” or the “Company”), including, but not limited to, express or implied statements regarding the Company’s strategy, business plans and focus, the progress and timing of clinical development of the Vigil program, including the availability and expected timing of data reporting for the VG-3927 Phase 1 clinical trial, views regarding observations obtained from analysis of preclinical studies and clinical trial data to date, expectations regarding Vigil’s relationship with Sanofi and potential licensing opportunities, and expectations that the Company’s cash runway will be sufficient through 2026. Forward-looking statements are based on Vigil’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Factors that may cause actual results to differ include, but are not limited to, risks and uncertainties associated with the uncertainties inherent in developing a product candidate, including conducting research activities and conducting clinical trials, uncertainties regarding the availability and timing of clinical trial results and data, whether the results of prior preclinical studies and clinical trials will be predictive of the results of subsequent preclinical studies and clinical trials, the timing and content of additional regulatory information from the FDA, the Company’s ability to cooperate with the FDA to lift the partial clinical hold on VG-3927, and whether Vigil’s cash resources are sufficient for predictable and unpredictable operating expenses and capital expenditure requirements, as well as the risks and uncertainties identified in the Company’s filings with the Securities and Exchange Commission (SEC), including Vigil’s Annual Report on Form 10-K for the year ended December 31, 2023, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and any subsequent filings Vigil makes with the SEC. The forward-looking statements contained in this announcement are made as of the date hereof, and Vigil assumes no obligation to update such information, except as required by applicable law. Readers should not rely on the information on this page as being current or accurate after the date of publication.
Posting information on the Internet
Vigil Neuroscience periodically posts information that it believes to be important to investors in the “Investors” section of its website at https://www.vigilneuro.com. The Company encourages investors and potential investors to periodically visit its website for important information about Vigil Neuroscience.
Investor Contact:
Leah Gibson
Vice President, Investor Relations and Corporate Communications
Vigil Neuroscience Inc.
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