Full Press Release Details
Therapeutics Inc. and Eloxx Pharmaceuticals Ltd Announce the Entering into of an Acquisition Transaction
company to advance Eloxx first in class compounds targeting genetic diseases caused by non-sense mutations
Diego, CA and Rehovot, Israel - June 2, 2017 - Sevion Therapeutics, Inc., (OTCQB: SVON) and Eloxx Pharmaceuticals
Ltd., a clinical stage company developing therapeutics for genetic diseases caused by non-sense mutations, announced today the
signing of a definitive agreement on May 31, 2017 for an acquisition transaction. Under the terms of the agreement, Eloxx will
become a wholly owned subsidiary of Sevion. Upon completion of the transaction, Sevion will change its name to Eloxx Pharmaceuticals,
Inc. and intends to apply to have its shares listed for trading on NASDAQ.
the terms of the agreement, Eloxx shareholders will receive shares of Sevion's common stock reflecting approximately 70%
of Sevion's issued and outstanding share capital, subject to further adjustment. The parties expect to raise at least $24
million in private equity investment rounds as a condition prior to consummation of the acquisition transaction. "The
transaction with Sevion positions Eloxx to become a leading rare disease company with sufficient capital to advance its pipeline
of first-in-class small molecule therapeutics through significant value-creating events," commented Dr. Silvia Noiman, CEO
of Eloxx. "We plan to initiate multiple clinical studies for ELX-02, our lead development candidate. Importantly,
we anticipate achieving substantial clinical milestones over the course of 2017 and 2018 particularly in our lead clinical programs
in cystic fibrosis and cystinosis patients carrying non-sense mutations. ELX-02 has shown pharmacological, pharmacodynamic and
physiological effects in several animal models of genetic disease cause by non-sense mutations including Cystic Fibrosis (CF)
, Cystinosis, Duchene Muscular Dystrophy (DMD), Rett syndrome and mucoplysaccharidose type I (MPS I)."
are enthusiastic by the breadth of Eloxx' technology and pipeline, the quality of the management team and the prospects
for Eloxx' products and technology, particularly its lead compound for the treatment of cystic fibrosis and cystinosis patients
carrying non-sense mutations," said Dr. Phillip Frost. "Based upon its unique capabilities to restore
full-length functional proteins in genetic diseases, we expect that Eloxx will establish itself over the coming years as an innovative
leader in the development of therapeutics to treat a variety of rare and ultra-rare genetic diseases."
executive team of Eloxx Pharmaceuticals will manage the combined Sevion-Eloxx entity, which will be based out of Eloxx Pharmaceuticals'
current corporate offices in Waltham, Massachusetts and Rehovot, Israel. The combined entity's leadership team will
consist of Dr. Silvia Noiman, who will serve as Chief Executive Officer; and Dr. Pedro Huertas as Chief Medical Officer.
respective Boards of Directors of both companies have approved the proposed transaction. Shareholders of Eloxx Pharmaceuticals,
including Pontifax and Mr. Gilad Shabtai, who hold in the aggregate approximately 81% of its voting shares to date have entered
into agreements in support of the proposed transaction. While these agreements assure the approval of the transaction, all Eloxx
Pharmaceuticals shareholders will be asked to vote on the transaction at a meeting of shareholders to be held shortly following
signing of the agreement for the acquisition. The transaction is expected to close on or before December 31, 2017,
subject to shareholder approval and other customary closing conditions which are set forth in the agreement for the contemplated
acquisition. Sevion will file a Current Report on Form 8-K within four (4) trading days of signing the agreement.
Eloxx Pharmaceuticals
Pharmaceuticals is a clinical stage company developing first in class therapeutics for the treatment of genetic disease caused
by non-sense mutations. Eloxx was co-founded by Dr. Silvia Noiman and Pontifax, a leading VC in the Life Sciences arena. Eloxx
technology is originated from the Technion - Israel Institute of Technology in Haifa, Israel, and results from a research
lead by Prof. Timor Baasov. The technology is licensed from the Technion through its technology transfer company, Technion Research
and Development Foundation Ltd. Approximately 3-4% of newborns manifest a genetic disease or major birth defect, and about 12%
of all mutations reported are caused by nonsense mutation. Non-sense mutations introduce premature stop codons in the reading
frame of a gene. When the mutated sequence is translated into a protein, the resulting protein is incomplete and shorter than
normal. Consequently, most nonsense mutations result in nonfunctional proteins. Nonsense mutations account for some of the most
severe phenotypes in genetic diseases and often have devastating effects in critical target organs. Eloxx lead compound, ELX-02,
provides unique opportunity to potentially be the first disease-modifying therapy for treatment of these set of devastating diseases,
for which there are no effective treatments.
is a translation read-through inducing drug (TRID). Read-through therapy is a treatment strategy for genetic diseases caused by
nonsense mutations to increase translation and restoring activity of the mutated proteins.
is a designer aminoglycoside with unique pharmacological properties scaffold that has been developed and optimized as a TRID through
intensive medicinal chemistry efforts over the past 10 years.
preclinical testing of ELX-02 in rats and dogs and in mouse animal models of disease has been completed. Eloxx completed a monocentric
Phase 1a single-ascending-dose study in healthy adult volunteers. The objective of this study is to characterize the safety, tolerability
and PK of ELX-02 and collect data to support additional multiple dose studies in normal healthy volunteers and in selected patient
populations. Phase 1b multiple ascending dose study (MAD) in healthy volunteers as well as 2 Phase 2 studies in Cystic Fibrosis
and Cystinosis patients carrying non-sense mutations, will follow the initial SAD study of ELX-02 .
studies demonstrated that ELX-02 is a potent TRID in several models of genetic disease caused by nonsense mutations. These models
include Rett Syndrome, Mucoplysaccharidose type I (MPS I-H), Cystic Fibrosis (CF), Duchene Muscular Dystrophy (DMD) and Cystinosis.
toxicology program in accordance with the ICH guideline M3 (R2) was completed for ELX-02 to support clinical studies.
Therapeutics is a biopharmaceutical company building and developing a portfolio of innovative therapeutics, from both internal
discovery and acquisition, for the treatment of cancer and immunological diseases. The Company's product candidates are
derived from multiple key proprietary technology platforms: cell-based arrayed antibody discovery, ultralong antibody scaffolds
and Chimerasome nanocages. Sevion has leveraged these technologies to build a pipeline of innovative product candidates. For more
information, please visit SevionTherapeutics.com.
statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety
of factors, including, but not limited to: the Company's ability to continue as a going concern; the ability of the Company
to consummate additional financings; the development of the Company's antibody technology; the approval of the Company's
patent applications; the Company's ability to successfully defend its intellectual property or obtain the necessary licenses
at a cost acceptable to the Company, if at all; the successful implementation of the Company's research and development
programs and collaborations; the success of the Company's license agreements; the acceptance by the market of the Company's
products; the timing and success of the Company's preliminary studies, preclinical research and clinical trials; competition
and the timing of projects and trends in future operating performance; and the quotation of the Company's common stock on
an over-the-counter securities market, as well as other factors expressed from time to time in the Company's periodic filings
with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction
with the Company's periodic filings with the SEC. The forward-looking statements contained herein are made only as of the
date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.
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