Press Release August 18, 2022

Q32 Bio Collaborates with Horizon Therapeutics on Autoimmune Diseases, with up to $55 Million in Near-Term and $645 Million in Closing and Milestone Payments

The Life Sciences team advised Q32 Bio in its collaboration and option agreement with Horizon Therapeutics Ireland DAC under which both companies will collaborate on the research, development and commercialization of ADX-914 for the treatment of autoimmune diseases. Under the terms of the agreement, Horizon will receive an option to acquire the ADX-914 program, exercisable through a period following completion of the Phase 2 trials. During the option period, Q32 Bio will receive $55 million in the form of initial consideration and staged development funding, of which Horizon expects to recognize as R&D expenses approximately $32.5 million in the third quarter of 2022, and the remainder in 2023. If Horizon exercises the option, Q32 Bio may be eligible to receive up to an additional $645 million in closing and milestone payments, as well as tiered royalties on net sales, less certain amounts payable under a pre-existing license agreement.

ADX-914 is a fully human anti-IL-7Rα antibody that re-regulates adaptive immune function by blocking signaling mediated by both IL-7 and TSLP. Q32 Bio has recently completed a biomarker-enabled Phase 1 study characterizing pharmacokinetics, pharmacodynamics and safety of ADX-914 that demonstrated pharmacological effect on T cells in healthy volunteers. Q32 Bio expects to initiate a Phase 2 trial in atopic dermatitis later this year and is planning to initiate a Phase 2 trial in a second autoimmune disease next year.

Q32 Bio is a clinical stage biotechnology company developing biologic therapeutics targeting powerful regulators of the innate and adaptive immune systems to re-balance immunity in severe autoimmune and inflammatory diseases. Q32 Bio’s lead programs, focused on the IL-7 / TSLP receptor pathways and complement system, address immune dysregulation to help patients take back control of their lives.

The Goodwin team was led by Laurie Burlingame, Kingsley Taft and Jake Hays and included Adam Bellack, Emily Beman, Daniel Karelitz, Benjamin Gossels, Susan Lee and Joe Thomas

For additional details on the agreement, please read the press release and coverage in Pharmaceutical Technology and Seeking Alpha