Modalis Therapeutics Corporation (the 'Company') announces pipeline prioritization and corporate restructuring to focus on its leading program.

The restructure is intended to significantly reduce operating expenses by lowering the headcount of the Company's wholly-owned US subsidiary, Modalis Therapeutics, Inc. ('Modalis US') while continuing to support meaningful value generation from the Company's strong pipeline of AAV Therapeutics.

Pipeline prioritization and corporate restructuring

The Modalis Therapeutics Group has progressed business activities aimed at initiating a first-in-human clinical trial of MDL-101 as its highest priority. As part of the group's efforts to streamline its management and organization, the Group has decided on internal organizational restructuring. Specifically, it will downsize the R&D and process development functions of Modalis US and concentrate business resources in the near term on its efforts to achieve IND clearance of MDL-101.

Outlook

The Company expects the impact of this matter on its consolidated earnings forecast for the fiscal year ending December 31, 2024, to be a reduction of 250 350 million yen in expenses due to reduced personnel expenses and the deduction of lump-sum severance payments. The lump-sum severance payments are expected to be 20 million yen.

Contact:

Web: https://www.modalistx.com

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