8-K
Tectonic Therapeutic, Inc. (TECX)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 4, 2024
AVROBIO, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-38537 | 81-0710585 |
|---|---|---|
| (State or other jurisdiction<br> <br>of incorporation) | (Commission<br> <br>File Number) | (I.R.S. Employer<br> <br>Identification No.) |
One Broadway
14^th^ Floor
Cambridge, MA 02142
(Address of principal executive offices, including zip code)
(617) 914-8420
(Registrant’s telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☒ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Common Stock, $0.0001 par value per share | AVRO | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 8.01 | Other Events. |
|---|
As previously disclosed, AVROBIO, Inc., a Delaware corporation (“AVROBIO”), and Tectonic Therapeutic, Inc., a Delaware corporation (“Tectonic”), entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) on January 30, 2024, pursuant to which, among other matters, Alpine Merger Subsidiary, Inc., a direct, wholly owned subsidiary of AVROBIO (“Merger Sub”), will merge with and into Tectonic, with Tectonic surviving as a wholly owned subsidiary of AVROBIO (such transaction, the “merger”). After the completion of the merger, AVROBIO will change its corporate name to “Tectonic Therapeutic, Inc.”
Certain Litigation
In connection with the merger, AVROBIO filed with the Securities and Exchange Commission (the “
SEC
”) a Form S-4 Registration Statement on February 14, 2024, as amended on March 26, 2024, April 15, 2024, and April 29, 2024 (the “
Registration Statement
”) with respect to the special meeting of AVROBIO’s stockholders scheduled to be held on June 11, 2024. Following the announcement of the merger and as of the time of the filing of these Supplemental Disclosures (as defined below), three actions were filed by purported AVROBIO stockholders in connection with the merger. One action has been filed in the United States District Court for the Southern District of New York captioned Garofalo v. Avrobio, Inc. et al., 24-cv-1493 (filed February 27, 2024). Two actions have been filed in the Supreme Court of New York, captioned Price v. Avrobio, Inc., et al., No. 652555/2024 (filed May 17, 2024) and Keller v. Avrobio, Inc., et al., No. 652597/2024 (filed May 21, 204). The foregoing actions are referred to as the “
Merger Actions
.”
The Merger Actions generally allege that the Registration Statement misrepresents and/or omits certain purportedly material information in connection with the merger, potential conflicts of interest of AVROBIO’s officers and directors, and the events that led to the signing of the Merger Agreement. The Garofalo action asserts violations of Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder against all defendants (AVROBIO and the board of directors of AVROBIO) and violations of Section 20(a) of the Exchange Act against AVROBIO’s directors. The Price and Keller actions assert claims for breach of fiduciary duty against all defendants. The Merger Actions seek, among other things, an injunction enjoining the consummation of the merger, costs of the action, including plaintiff’s attorneys’ fees and experts’ fees and other relief the court may deem just and proper.
AVROBIO also received demand letters from eleven purported AVROBIO stockholders (the “Demands”). The Demands generally assert that the Registration Statement misrepresents and/or omits certain purportedly material information relating to the merger.
AVROBIO cannot predict the outcome of the Merger Actions or the Demands. AVROBIO believes that the Merger Actions and Demands are without merit. If additional complaints are filed or demands are received, absent new or significantly different allegations, AVROBIO will not necessarily disclose such additional complaints or demands.
AVROBIO believes that the disclosures set forth in the Registration Statement comply fully with all applicable law, that no supplemental disclosures are required under applicable law, and that the allegations in the Merger Actions and Demands are without merit. However, in order to moot the claims in the Merger Actions and Demands, avoid nuisance and possible expense and business delays, and provide additional information to its stockholders, and without admitting any liability or wrongdoing, AVROBIO has decided voluntarily to supplement certain disclosures in the Registration Statement (the “Supplemental Disclosures”). Nothing in the Supplemental Disclosures shall be deemed an admission of the legal necessity or materiality under applicable laws of any of the disclosures set forth herein. To the contrary, AVROBIO specifically denies all allegations in the Merger Actions and the Demands and that any additional disclosure was or is required or material.
The Supplemental Disclosures supplement the disclosures contained in the Registration Statement and should be read in conjunction with the disclosures contained in the Registration Statement, which in turn should be read in its entirety. To the extent that information set forth in the Supplemental Disclosures differs from or updates information contained in the Registration Statement, the information in the Supplemental Disclosures shall supersede or supplement the information contained in the Registration Statement. All page references used herein are to the Registration Statement and capitalized or defined terms used herein, but not otherwise defined, shall have the meanings ascribed to such terms in the Registration Statement. To the extent that certain disclosures contained in the Registration Statement are amended and restated in the Supplemental Disclosures, any additional language is indicated by bold, underlined text and deletions are indicated by strikethrough.
Supplemental Disclosures to the Registration Statement
The disclosure under the heading “Background of the Merger” is hereby amended and supplemented by replacing the first full paragraph on page 189 of the Registration Statement in its entirety with the following:
On November 11, 2023, Tectonic submitted a written indication of interest to AVROBIO proposing a reverse merger transaction (the “
Tectonic November
11, 2023 Proposal
”). The Tectonic November 11, 2023 Proposal contemplated a valuation for AVROBIO of $70 million (including a targeted $65 million of net cash at closing and a $5 million proposed valuation of AVROBIO’s public company listing), a valuation for Tectonic of $150 million (which was equal to the agreed upon valuation of Tectonic in a recently negotiated term sheet for a transaction Tectonic and the Tectonic Board had previously considered), and a potential concurrent private placement investment in a range of $125 million to $150 million to help fund the combined company following the merger. The Tectonic November 11, 2023 Proposal also communicated Tectonic’s willingness to offer CVRs or other monetization mechanisms to pre-closing AVROBIO shareholders in connection with any post-closing transaction to monetize AVROBIO’s pre-closing assets. The Tectonic November
11, 2023 Proposal also contemplated that the combined company’s board would include 5-6 directors from Tectonic and one director from AVROBIO.
The Tectonic November 11, 2023 Proposal was promptly shared with the AVROBIO Transaction Committee.
The disclosure under the heading “Background of the Merger” is hereby amended and supplemented by replacing the fifth full paragraph on page 187 of the Registration Statement in its entirety with the following:
On October 24, 2023, AVROBIO and Tectonic entered into a mutual confidentiality agreement, which included a customary “standstill” provision binding on Tectonic subject to customary fallaway provisions. At no point during the negotiation process with Tectonic leading up to the execution of the Merger Agreement did any employee of AVROBIO enter into any formal or informal agreement, arrangement, or understanding (whether or not binding) regarding continuing employment after closing of the contemplated transaction.
The disclosure under the subheading “Opinion of Houlihan Lokey to the AVROBIO Board” is hereby amended and supplemented by replacing the chart on page 213 and 214 of the Registration Statement in its entirety with the following:
| (Dollars in millions, except per share values) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Enterprise<br>Value | Lead Product | |||||||||||||
| Selected Cardiovascular Companies | Share<br>Price | Equity<br>Market<br>Value | Phase | Therapeutic Category | Therapeutic Indication | |||||||||
| Aerovate Therapeutics, Inc. | $ | 17.68 | $ | 489.2 | $ | 354.0 | Phase II-B / III | Cardiovascular | Pulmonary Hypertension | |||||
| Cereno Scientific AB (publ) | $ | 0.44 | $ | 103.5 | $ | 97.0 | Phase II | Cardiovascular | Pulmonary Hypertension | |||||
| Gossamer Bio, Inc. | $ | 0.80 | $ | 180.3 | $ | 63.1 | Phase III | Cardiovascular | Pulmonary Hypertension | |||||
| Pharmosa Biopharm Inc. | $ | 2.85 | $ | 333.9 | $ | 302.5 | Phase III | Cardiovascular | Pulmonary Hypertension | |||||
| Tenax Therapeutics, Inc. | $ | 10.09 | $ | 3.0 | ($ | 8.0 | ) | Phase III - Starting | Cardiovascular | Pulmonary Hypertension,<br>HFpEF | ||||
| Tenaya Therapeutics, Inc. | $ | 4.19 | $ | 285.4 | $ | 157.3 | Phase I Complete | Cardiovascular | HFpEF | |||||
| (Dollars in millions, except per share values) | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Enterprise<br>Value | Lead Product | |||||||||||||
| Selected Cardiovascular Companies | Share<br>Price | Equity<br>Market<br>Value | Phase | Therapeutic Category | Therapeutic Indication | |||||||||
| Verve Therapeutics, Inc. | $ | 11.54 | $ | 928.1 | $ | 442.9 | Phase I | Cardiovascular,<br>Metabolic | ASCVD, HeFH | |||||
| Low | $ | 3.0 | $ | (8.0 | ) | |||||||||
| High | $ | 928.1 | $ | 442.9 | ||||||||||
| Median | $ | 285.4 | $ | 157.3 | ||||||||||
| Mean | $ | 331.9 | $ | 201.2 | ||||||||||
| Selected Early Stage Companies | ||||||||||||||
| Acumen Pharmaceuticals, Inc. | $ | 3.24 | $ | 187.6 | ($ | 95.1 | ) | Phase II Ready | Central Nervous<br>System | Alzheimer’s Disease | ||||
| Apogee Therapeutics, Inc. | $ | 36.50 | $ | 1,849.6 | $ | 1,426.8 | Phase I | Dermatology | Atopic Dermatitis | |||||
| Cabaletta Bio, Inc. | $ | 22.28 | $ | 954.7 | $ | 790.3 | Phase I / II | Immunology | Systemic Lupus<br>Erythematosus (SLE) | |||||
| Dianthus Therapeutics, Inc. | $ | 17.88 | $ | 264.9 | $ | 75.1 | Phase II Ready | Immunology | Myasthenia Gravis | |||||
| Longboard Pharmaceuticals, Inc. | $ | 23.27 | $ | 843.9 | $ | 787.9 | Phase III Ready | Neurology | Developmental and<br>Epileptic<br>Encephalopathy | |||||
| Spyre Therapeutics, Inc. | $ | 27.50 | $ | 990.6 | $ | 1,174.1 | IND | Gastrointestinal | Inflammatory Bowel<br>Disease | |||||
| Structure Therapeutics Inc. | $ | 42.50 | $ | 2,076.3 | $ | 1,870.9 | Phase II-A | Metabolic Disorders | Diabetes and Obesity | |||||
| Zura Bio Limited | $ | 3.20 | $ | 139.5 | $ | 58.1 | Phase II Ready | Immunology | Systemic Sclerosis | |||||
| Low | $ | 139.5 | $ | (95.1 | ) | |||||||||
| High | $ | 2,076.3 | $ | 1,870.9 | ||||||||||
| Median | $ | 899.33 | $ | 789.1 | ||||||||||
| Mean | $ | 913.4 | $ | 761.0 | ||||||||||
| All Selected Companies | ||||||||||||||
| Low | $ | 3.0 | $ | (95.1 | ) | |||||||||
| High | $ | 2,076.3 | $ | 1,870.9 | ||||||||||
| Median | $ | 333.9 | $ | 302.5 | ||||||||||
| Mean | $ | 642.0 | $ | 499.8 |
The disclosure under the heading “Opinion of Houlihan Lokey to the AVROBIO Board” is hereby amended and supplemented by replacing the chart on page 215 of the Registration Statement in its entirety with the following:
| (Dollars in millions) | Lead Product | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Announced | Effective | Target | Acquiror | Upfront<br>Consideration | Contingent<br>Consideration | Transaction<br>Value | Therapeutic<br>Indication | Development<br>Phase | ||||
| Cardiovascular | ||||||||||||
| 9/30/22 | 10/20/22 | DJS Antibodies Ltd | AbbVie, Inc. | $ | 255.0 | $ | 95.0 | $ | 350.0 | Fibrotic Diseases | NA | |
| 9/20/22 | 12/1/22 | Renovacor, Inc. | Rocket Pharmaceuticals, Inc. | $ | 53.0 | NA | $ | 53.0 | Cardiomyopathy | Preclinical | ||
| 3/23/21 | 9/2/21 | Chardan Healthcare Acquisition 2 Corp. | Renovacor, Inc. | $ | 116.0 | NA | $ | 116.0 | Cardiovascular Disorders | Preclinical | ||
| 1/19/21 | 1/15/21 | PH Precision Med | Tenax Therapeutics, Inc. | $ | 21.6 | NA | $ | 21.6 | Pulmonary Hypertension | Preclinical | ||
| 7/21/20 | 12/14/20 | Tenzing Acquisition Corp. | Reviva Pharmaceuticals, Inc. | $ | 119.7 | NA | $ | 119.7 | Pulmonary Hypertension | Phase II | ||
| 1/13/20 | 1/13/20 | Viamet’s Oral Aldosterone Synthase Inhibitor | PhaseBio Pharmaceuticals, Inc. | $ | 0.1 | $ | 147.6 | $ | 147.7 | Hypertension | Preclinical | |
| (Dollars in millions) | Lead Product | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Announced | Effective | Target | Acquiror | Upfront<br>Consideration | Contingent<br>Consideration | Transaction<br>Value | Therapeutic<br>Indication | Development<br>Phase | ||||
| Low | $ | 0.1 | $ | 95.0 | $ | 21.6 | ||||||
| High | $ | 255.0 | $ | 147.6 | $ | 350.0 | ||||||
| Median | $ | 84.5 | $ | 121.3 | $ | 117.9 | ||||||
| Mean | $ | 94.2 | $ | 121.3 | $ | 134.7 | ||||||
| Phase I | ||||||||||||
| 11/14/23 | Pending | Qsam Biosciences, Inc. | Telix Pharmaceuticals Limited | $ | 33.1 | $ | 90.0 | $ | 123.1 | Osteosarcoma | Phase I | |
| 8/21/23 | 8/23/23 | Bird Rock Bio, Inc. | Skye Bioscience, Inc. | $ | 20.0 | $ | 0.0 | $ | 20.0 | Chronic Kidney Disease | Phase I | |
| 6/25/23 | Pending | Qpex Biopharma, Inc. | Shionogi, Inc. | $ | 100.0 | $ | 40.0 | $ | 140.0 | Gram-Negative Infections | Phase I | |
| 2/21/23 | 2/21/23 | Kinnjiu Biopharma Inc | Kinnate Biopharma Inc | $ | 24.0 | $ | 0.0 | $ | 24.0 | Solid Tumors, Melanoma | Phase I | |
| 11/7/22 | 11/7/22 | Fulgent Pharma LLC | Fulgent Genetics Inc | $ | 100.0 | $ | 0.0 | $ | 100.0 | Cancer | Phase I | |
| 9/19/22 | 9/29/22 | Versantis AG | Genfit SA | $ | 41.4 | $ | 67.3 | $ | 108.8 | Liver Disease | Phase I | |
| 7/20/22 | 12/12/22 | Larkspur Health Acquisition Corp. | Zyversa Therapeutics Inc | $ | 193.6 | $ | 0.0 | $ | 193.6 | Diabetic Nephropathy | Phase I | |
| 7/5/22 | 8/11/22 | TeneoTwo Inc | AstraZeneca Plc | $ | 100.0 | $ | 1,165.0 | $ | 1,265.0 | Lymphoma | Phase I | |
| 5/31/22 | 8/16/22 | Affinivax Inc | GSK Plc | $ | 2,100.0 | $ | 1,200.0 | $ | 3,300.0 | Streptococcal Pneumonia | Phase I | |
| 3/1/22 | 3/1/22 | Syndesi Therapeutics SA | AbbVie Inc | $ | 130.0 | $ | 870.0 | $ | 1,000.0 | Alzheimer’s Disease | Phase I | |
| 12/14/21 | 3/11/22 | VCN Biosciences SL | Theriva Biologics Inc | $ | 4.7 | $ | 70.3 | $ | 75.0 | Cancer | Phase I | |
| 11/11/21 | 12/13/21 | Forendo Pharma Ltd | Organon & Co | $ | 75.0 | $ | 870.0 | $ | 945.0 | Endometriosis | Phase I | |
| 11/11/21 | 11/11/21 | Abfero Pharmaceuticals Inc | Pharmacosmos AS | $ | 225.0 | Undisclosed | $ | 225.0 | Diseases of Iron Overload | Phase I | ||
| 10/26/21 | 10/26/21 | Chengdu Antkin Biotechnology Co Ltd | Shanghai Fosun Pharmaceutical Group | $ | 627.3 | $ | 0.0 | $ | 627.3 | Streptococcal Pneumonia | Phase I | |
| 7/27/21 | 10/19/21 | TeneoBio Inc | Amgen Inc | $ | 900.0 | $ | 1,600.0 | $ | 2,500.0 | Myeloma, Lymphoma | Phase I | |
| 2/26/21 | 3/31/21 | Silicon Therapeutics LLC | Roivant Sciences Ltd | $ | 450.0 | Undisclosed | $ | 450.0 | Cancer | Phase I | ||
| 2/1/21 | 6/30/21 | Leisure Acquisition Corp. | Ensysce Biosciences Inc | $ | 207.0 | $ | 0.0 | $ | 207.0 | Pain, Substance Abuse | Phase I | |
| 9/29/20 | 12/23/20 | LifeSci Acquisition Corp. | Vincerx Pharma Inc | $ | 55.0 | $ | 0.0 | $ | 55.0 | Lymphoma, Cancer | Phase I | |
| 9/21/20 | 9/21/20 | Inflazome Ltd | F. Hoffmann-La Roche Ltd | $ | 445.9 | Undisclosed | $ | 445.9 | Inflammatory Diseases | Phase I | ||
| 8/24/20 | 8/24/20 | CerSci Therapeutics Inc | Acadia Pharmaceuticals Inc | $ | 52.5 | $ | 887.0 | $ | 939.5 | Amyotrophic Lateral Sclerosis | Phase I | |
| 2/26/20 | 2/26/20 | PVP Biologics Inc (Inactive) | Takeda Pharmaceutical Co Ltd | $ | 330.0 | Undisclosed | $ | 330.0 | Celiac Disease | Phase I | ||
| 1/16/20 | 5/6/20 | Neon Therapeutics, Inc. | BioNTech US Inc | $ | 67.0 | $ | 0.0 | $ | 67.0 | Cancer | Phase I | |
| 11/18/19 | 11/25/19 | Rodin Therapeutics Inc | Alkermes Plc | $ | 100.0 | $ | 850.0 | $ | 950.0 | Neurodegenerative Diseases | Phase I | |
| 5/8/19 | 7/1/19 | Therachon AG | Pfizer Inc | $ | 340.0 | $ | 470.0 | $ | 810.0 | Achondroplasia | Phase I | |
| 4/1/19 | 5/8/19 | Novartis AG | IFM Tre Inc | $ | 310.0 | $ | 1,265.0 | $ | 1,575.0 | Inflammatory Disorders | Phase I | |
| 1/4/19 | 1/11/19 | Yong Shun Technology Development | Dragon Merit | $ | 36.8 | $ | 0.0 | $ | 36.8 | Cancer | Phase I | |
| Low | $ | 4.7 | $ | 0.0 | $ | 20.0 | ||||||
| High | $ | 2,100.0 | $ | 1,600.0 | $ | 3,300.0 | ||||||
| Media | $ | 100.0 | $ | 68.8 | $ | 277.5 | ||||||
| Mean | $ | 271.9 | $ | 429.3 | $ | 635.1 | ||||||
| All M&A Transactions | ||||||||||||
| Low | $ | 0.1 | $ | 0.0 | $ | 20.0 | ||||||
| High | $ | 2,100.0 | $ | 1,600.0 | $ | 3,300.0 | ||||||
| Media | $ | 100.0 | $ | 80.1 | $ | 200.3 | ||||||
| Mean | $ | 238.6 | $ | 403.6 | $ | 541.3 |
The disclosure under the heading “Opinion of Houlihan Lokey to the AVROBIO Board” is hereby amended and supplemented by replacing the chart on page 216 through 218 of the Registration Statement in its entirety with the following:
| (Dollars in millions, except per share data) | Current Statistics [1] | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| IPO Date | Selected Company | GPCR<br>Platform | Lead Asset<br>Indication | Lead Asset<br>Phase | Offer<br>Price | Pre-<br>Money<br>Value | Gross<br>Proceeds | Post-<br>Money<br>Value | Post-<br>Money<br>Enterprise<br>Value | Share<br>Price | Market<br>Cap | Change in<br>Market<br>Cap since<br>IPO | Enterprise<br>Value | |||||||||||
| Cardiovascular | ||||||||||||||||||||||||
| 11/2/23 | Lexeo Therapeutics, Inc. | No | Cardiomyopathy and Alzheimer’s | Phase I | $ | 11.00 | $ | 172.4 | $ | 100.0 | $ | 272.4 | $ | 329.7 | $ | 16.51 | $ | 459.4 | 68.7 | % | $ | 615.0 | ||
| 2/9/23 | Mineralys Therapeutics, Inc. | No | Hypertension | Phase II | $ | 16.00 | $ | 432.9 | $ | 220.8 | $ | 653.7 | $ | 357.4 | $ | 10.30 | $ | 436.1 | (33.3 | %) | $ | 182.3 | ||
| 1/6/22 | CinCor Pharma, Inc. | No | Hypertension | Phase II | $ | 16.00 | $ | 390.7 | $ | 212.7 | $ | 603.4 | $ | 284.6 | NA | NA | NA | NA | ||||||
| 7/29/21 | Tenaya Therapeutics, Inc. | No | gHCM and HFpEF | Preclinical | $ | 15.00 | $ | 409.9 | $ | 207.0 | $ | 616.9 | $ | 324.7 | $ | 4.19 | $ | 285.4 | (53.7 | %) | $ | 157.3 | ||
| 6/29/21 | Aerovate Therapeutics, Inc. | No | PAH | Phase I | $ | 14.00 | $ | 202.0 | $ | 139.8 | $ | 341.7 | $ | 247.5 | $ | 17.68 | $ | 511.0 | 49.5 | % | $ | 375.8 | ||
| 6/17/21 | Verve Therapeutics, Inc. | No | Hypercholesterolemia and ASCVD | Preclinical | $ | 19.00 | $ | 609.4 | $ | 306.7 | $ | 916.1 | $ | 571.9 | $ | 11.54 | $ | 928.1 | 1.3 | % | $ | 442.9 | ||
| 10/28/20 | Galecto, Inc. | No | Pulmonary Fibrosis | Phase II | $ | 15.00 | $ | 283.8 | $ | 95.1 | $ | 378.9 | $ | 205.2 | $ | 0.67 | $ | 18.2 | (95.2 | %) | ($ | 26.0 | ) | |
| 5/13/19 | Applied Therapeutics, Inc. | No | Diabetic Cardiomyopathy | Phase II | $ | 10.00 | $ | 130.5 | $ | 40.0 | $ | 170.5 | $ | 114.5 | $ | 2.91 | $ | 229.0 | 34.3 | % | $ | 192.3 | ||
| Low | $ | 10.00 | $ | 130.5 | $ | 40.0 | $ | 170.5 | $ | 114.5 | $ | 0.67 | $ | 18.2 | (95.2 | %) | ($ | 26.0 | ) | |||||
| High | $ | 19.00 | $ | 609.4 | $ | 306.7 | $ | 916.1 | $ | 571.9 | $ | 17.68 | $ | 928.1 | 68.7 | % | $ | 615.0 | ||||||
| Median | $ | 15.00 | $ | 337.2 | $ | 173.4 | $ | 491.1 | $ | 304.6 | $ | 10.30 | $ | 436.1 | 1.3 | % | $ | 192.3 | ||||||
| Mean | $ | 14.50 | $ | 328.9 | $ | 165.3 | $ | 494.2 | $ | 304.4 | $ | 9.11 | $ | 409.6 | (4.1 | %) | $ | 277.1 | ||||||
| Phase I | ||||||||||||||||||||||||
| 3/30/23 | Gubra A/S | Yes | Obesity | Phase I | $ | 16.10 | $ | 232.4 | $ | 30.8 | $ | 263.2 | $ | 205.0 | $ | 17.64 | $ | 287.3 | 9.2 | % | $ | 224.7 | ||
| 2/2/23 | Structure Therapeutics Inc. | Yes | T2DM / Obesity and PAH | Phase I | $ | 15.00 | $ | 370.5 | $ | 185.3 | $ | 555.8 | $ | 306.0 | $ | 42.50 | $ | 2,205.3 | 296.8 | % | $ | 1,999.9 | ||
| 9/14/22 | Third Harmonic Bio, Inc. | No | Chronic Urticaria and Asthma | Phase I | $ | 17.00 | $ | 472.5 | $ | 213.1 | $ | 685.6 | $ | 403.8 | $ | 9.01 | $ | 387.7 | (43.5 | %) | $ | 113.8 | ||
| 7/27/22 | MAIA Biotechnology, Inc. | No | Cancer | Phase I | $ | 5.00 | $ | 41.7 | $ | 11.5 | $ | 53.2 | $ | 34.4 | $ | 1.35 | $ | 22.9 | (57.0 | %) | $ | 16.8 | ||
| 5/5/22 | PepGen Inc. | No | Duchenne Muscular Dystrophy | Phase I | $ | 12.00 | $ | 160.7 | $ | 122.9 | $ | 283.6 | $ | 52.0 | $ | 6.86 | $ | 163.4 | (42.4 | %) | $ | 33.8 | ||
| 3/24/22 | AN2 Therapeutics, Inc. | No | Infectious Diseases | Phase I | $ | 15.00 | $ | 212.1 | $ | 79.4 | $ | 291.4 | $ | 167.3 | $ | 19.50 | $ | 613.2 | 110.4 | % | $ | 489.4 | ||
| 2/3/22 | Arcellx, Inc. | No | Myeloma | Phase I | $ | 15.00 | $ | 379.4 | $ | 142.3 | $ | 521.7 | $ | 339.5 | $ | 62.82 | $ | 3,673.5 | 604.1 | % | $ | 3,244.9 | ||
| 10/20/21 | Ventyx Biosciences, Inc. | Yes | Ulcerative Colitis and Crohn’s Disease | Phase I | $ | 16.00 | $ | 631.3 | $ | 174.3 | $ | 805.6 | $ | 513.4 | $ | 2.04 | $ | 120.4 | (85.1 | %) | ($ | 180.4 | ) | |
| 10/14/21 | MiNK Therapeutics, Inc. | No | Respiratory Distress Syndrome | Phase I | $ | 12.00 | $ | 351.0 | $ | 40.0 | $ | 391.0 | $ | 355.1 | $ | 0.84 | $ | 29.1 | (92.6 | %) | $ | 22.7 | ||
| 7/30/21 | IN8bio, Inc. | No | Leukemia | Phase I | $ | 10.00 | $ | 147.5 | $ | 40.0 | $ | 187.5 | $ | 138.9 | $ | 1.30 | $ | 56.3 | (70.0 | %) | $ | 44.8 | ||
| 3/25/21 | Edgewise Therapeutics, Inc. | No | Muscular Dystrophy and Cardiomyopathy | Phase I | $ | 16.00 | $ | 585.1 | $ | 202.4 | $ | 787.5 | $ | 521.4 | $ | 16.52 | $ | 1,433.9 | 82.1 | % | $ | 1,144.2 | ||
| (Dollars in millions, except per share data) | Current Statistics [1] | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| IPO Date | Selected Company | GPCR<br>Platform | Lead Asset<br>Indication | Lead Asset<br>Phase | Offer<br>Price | Pre-<br>Money<br>Value | Gross<br>Proceeds | Post-<br>Money<br>Value | Post-<br>Money<br>Enterprise<br>Value | Share<br>Price | Market<br>Cap | Change in<br>Market<br>Cap since<br>IPO | Enterprise<br>Value | |||||||||||
| 3/18/21 | Instil Bio, Inc. | No | Cancer | Phase I | $ | 20.00 | $ | 2,196.2 | $ | 368.0 | $ | 2,564.2 | $ | 1,975.4 | $ | 11.94 | $ | 77.7 | (97.0 | %) | ($ | 24.6 | ) | |
| 3/11/21 | Longboard Pharmaceuticals, Inc. | Yes | DEEs | Phase I | $ | 16.00 | $ | 132.6 | $ | 84.8 | $ | 217.4 | $ | 90.0 | $ | 23.27 | $ | 914.5 | 320.7 | % | $ | 858.5 | ||
| 2/11/21 | Decibel Therapeutics, Inc. | No | Hearing Disorders | Phase I | $ | 18.00 | $ | 310.3 | $ | 137.9 | $ | 448.2 | $ | 246.1 | NA | NA | NA | NA | ||||||
| 12/4/20 | Silverback Therapeutics, Inc. | No | Cancer | Phase I | $ | 21.00 | $ | 452.9 | $ | 277.7 | $ | 730.6 | $ | 367.9 | NA | NA | NA | NA | ||||||
| 10/15/20 | Aligos Therapeutics, Inc. | No | Hepatitis B | Phase I | $ | 15.00 | $ | 334.5 | $ | 172.5 | $ | 507.0 | $ | 242.8 | $ | 0.69 | $ | 51.8 | (89.8 | %) | ($ | 18.4 | ) | |
| 10/1/20 | Oncorus, Inc. | No | Cancer | Phase I | $ | 15.00 | $ | 240.7 | $ | 98.4 | $ | 339.1 | $ | 196.6 | NA | NA | NA | NA | ||||||
| 9/24/20 | Prelude Therapeutics, Inc. | No | Cancer | Phase I | $ | 19.00 | $ | 648.5 | $ | 181.9 | $ | 830.4 | $ | 606.6 | $ | 3.58 | $ | 226.9 | (72.7 | %) | ($ | 3.6 | ) | |
| 9/17/20 | Athira Pharma, Inc. | No | Alzheimer’s Disease, Dementia | Phase I | $ | 17.00 | $ | 319.9 | $ | 227.8 | $ | 547.7 | $ | 277.4 | $ | 3.09 | $ | 117.6 | (78.5 | %) | ($ | 55.4 | ) | |
| 7/15/20 | Relay Therapeutics, Inc. | No | Cancer | Phase I | $ | 20.00 | $ | 1,337.5 | $ | 460.0 | $ | 1,797.5 | $ | 1,093.1 | $ | 9.72 | $ | 1,238.9 | (31.1 | %) | $ | 428.3 | ||
| 6/25/20 | Fusion Pharmaceuticals Inc. | No | Cancer | Phase I | $ | 17.00 | $ | 495.8 | $ | 212.5 | $ | 708.3 | $ | 385.3 | $ | 10.89 | $ | 858.6 | 21.2 | % | $ | 701.8 | ||
| 6/4/20 | Applied Molecular Transport Inc. | No | Pouchitis and Rheumatoid Arthritis | Phase I | $ | 14.00 | $ | 299.6 | $ | 177.1 | $ | 476.7 | $ | 319.1 | NA | NA | NA | NA | ||||||
| 7/17/19 | Fulcrum Therapeutics, Inc. | No | Muscular Dystrophy | Phase I | $ | 16.00 | $ | 301.4 | $ | 72.0 | $ | 373.4 | $ | 247.2 | $ | 6.95 | $ | 429.7 | 15.1 | % | $ | 172.6 | ||
| Low | $ | 5.00 | $ | 41.7 | $ | 11.5 | $ | 53.2 | $ | 34.4 | $ | 0.69 | $ | 22.9 | (97.0 | %) | ($ | 180.4 | ) | |||||
| High | $ | 21.00 | $ | 2,196.2 | $ | 460.0 | $ | 2,564.2 | $ | 1,975.4 | $ | 62.82 | $ | 3,673.5 | 604.1 | % | $ | 3,244.9 | ||||||
| Median | $ | 16.00 | $ | 334.5 | $ | 172.5 | $ | 507.0 | $ | 306.0 | $ | 9.01 | $ | 287.3 | (42.4 | %) | $ | 113.8 | ||||||
| Mean | $ | 15.53 | $ | 463.2 | $ | 161.4 | $ | 624.6 | $ | 395.0 | $ | 13.18 | $ | 679.4 | 36.8 | % | $ | 484.9 | ||||||
| All Selected IPOs | ||||||||||||||||||||||||
| Low | $ | 5.00 | $ | 41.7 | $ | 11.5 | $ | 53.2 | $ | 34.4 | $ | 0.67 | $ | 18.2 | (97.0 | %) | ($ | 180.4 | ) | |||||
| High | $ | 21.00 | $ | 2,196.2 | $ | 460.0 | $ | 2,564.2 | $ | 1,975.4 | $ | 62.82 | $ | 3,673.5 | 604.1 | % | $ | 3,244.9 | ||||||
| Median | $ | 16.00 | $ | 334.5 | $ | 172.5 | $ | 507.0 | $ | 306.0 | $ | 9.37 | $ | 337.5 | (32.2 | %) | $ | 177.5 | ||||||
| Mean | $ | 15.26 | $ | 428.6 | $ | 162.4 | $ | 591.0 | $ | 371.6 | $ | 12.09 | $ | 606.8 | 25.8 | % | $ | 429.0 |
[1] As of January 26, 2024
The disclosure under the heading “Opinion of Houlihan Lokey to the AVROBIO Board” is hereby amended and supplemented by replacing the chart on page 218 and 219 of the Registration Statement in its entirety with the following:
| (Dollars in millions) | Lead Product | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Announced Date | Company | Financing<br> <br>Round | Amount<br>Raised | Total<br>Capital<br>Raised | Pre-Money<br>Value | Post-<br>Money<br>Value | Therapeutic<br>Category | Phase | ||||
| Cardiovascular | ||||||||||||
| 10/31/23 | Imagine Pharma, Inc. | Series A | $ | 32.5 | $ | 40.0 | NA | NA | Cardiovascular | Preclinical | ||
| 10/17/23 | Amplifier Therapeutics | Series A | $ | 33.3 | $ | 33.3 | NA | NA | Cardiovascular | Phase II | ||
| 12/14/22 | XyloCor Therapeutics | Series A1 | $ | 12.0 | $ | 54.5 | $ | 62.6 | $ | 74.6 | Cardiovascular | NA |
| 1/20/21 | XyloCor Therapeutics | Series A1 | $ | 22.6 | $ | 42.5 | $ | 40.0 | $ | 62.6 | Cardiovascular | Phase II |
| 8/19/22 | Rivus Pharmaceuticals | Series B | $ | 132.0 | $ | 167.0 | $ | 300.0 | $ | 432.0 | Cardiovascular | Phase II |
| (Dollars in millions) | Lead Product | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Announced Date | Company | Financing<br> <br>Round | Amount<br>Raised | Total<br>Capital<br>Raised | Pre-Money<br>Value | Post-<br>Money<br>Value | Therapeutic<br>Category | Phase | ||||
| 7/20/21 | Rivus Pharmaceuticals | Series A | $ | 35.0 | $ | 35.0 | $ | 15.0 | $ | 50.0 | Cardiovascular | Phase II |
| 6/1/22 | Mineralys | Series B | $ | 118.0 | $ | 158.0 | $ | 150.0 | $ | 268.0 | Cardiovascular | Phase II |
| 1/18/22 | Mineralys | Series A | $ | 40.0 | $ | 40.0 | $ | 37.5 | $ | 77.5 | Cardiovascular | Phase I |
| 12/20/21 | Armgo Pharma | Series B | $ | 35.0 | $ | 40.0 | $ | 35.0 | $ | 70.0 | Cardiovascular | Phase I |
| 9/22/21 | CinCor Pharma | Series B | $ | 142.9 | $ | 192.9 | $ | 230.0 | $ | 372.9 | Cardiovascular | Phase I |
| 5/14/19 | CinCor Pharma | Series A | $ | 50.0 | $ | 50.0 | $ | 15.0 | $ | 65.0 | Cardiovascular | Phase I |
| 8/31/21 | Versanis Bio | Series A | $ | 70.0 | $ | 70.0 | $ | 35.0 | $ | 105.0 | Cardiovascular | Phase II |
| 3/1/21 | Tenaya Therapeutics | Series C | $ | 106.0 | $ | 248.0 | $ | 270.0 | $ | 376.0 | Cardiovascular | Preclinical |
| 10/3/19 | Tenaya Therapeutics | Series B | $ | 92.0 | $ | 142.0 | $ | 118.0 | $ | 210.0 | Cardiovascular | Preclinical |
| 1/14/21 | Verve Therapeutics | Series B | $ | 94.0 | $ | 215.5 | $ | 325.0 | $ | 419.0 | Cardiovascular | Preclinical |
| 1/11/20 | Verve Therapeutics | Series A2 | $ | 63.0 | $ | 121.5 | $ | 130.0 | $ | 193.0 | Cardiovascular | Preclinical |
| 12/8/20 | Edgewise Therapeutics | Series C | $ | 95.0 | $ | 155.0 | $ | 200.0 | $ | 295.0 | Cardiovascular | Phase I |
| 9/17/19 | Edgewise Therapeutics | Series B | $ | 50.0 | $ | 60.0 | $ | 60.0 | $ | 120.0 | Cardiovascular | Phase I |
| 10/21/20 | InCarda Therapeutics | Series C | $ | 30.0 | $ | 77.9 | $ | 128.3 | $ | 158.3 | Cardiovascular | Phase II |
| 8/14/19 | Renovacor | Series A | $ | 11.0 | $ | 11.0 | $ | 11.3 | $ | 22.3 | Cardiovascular | Preclinical |
| Low | $ | 11.0 | $ | 11.0 | $ | 11.3 | $ | 22.3 | ||||
| High | $ | 142.9 | $ | 248.0 | $ | 325.0 | $ | 432.0 | ||||
| Median | $ | 50.0 | $ | 65.0 | $ | 90.3 | $ | 139.2 | ||||
| Mean | $ | 63.2 | $ | 97.7 | $ | 120.2 | $ | 187.3 | ||||
| Early Stage - GPCR | ||||||||||||
| 12/14/23 | Deep Apple Therapeutics | Series A | $ | 52.0 | $ | 57.0 | NA | NA | Metabolic | Discovery | ||
| 7/11/23 | Septerna | Series B | $ | 150.0 | $ | 250.0 | $ | 170.0 | $ | 320.0 | Hormonal | Preclinical |
| 1/27/22 | Septerna | Series A | $ | 100.0 | $ | 100.0 | $ | 45.0 | $ | 145.0 | Hormonal | Discovery |
| 4/20/23 | Enveda Biosciences | Series B | $ | 119.0 | $ | 175.0 | $ | 200.0 | $ | 319.0 | Movement | Preclinical |
| 6/22/21 | Enveda Biosciences | Series A | $ | 51.0 | $ | 56.0 | $ | 70.0 | $ | 100.1 | Movement | Preclinical |
| 2/15/23 | Maxion Therapeutics | Series A | $ | 15.9 | $ | 15.9 | $ | 13.7 | $ | 29.5 | Immunology | Discovery |
| 10/25/21 | Pathios Therapeutics | Series A | $ | 20.0 | $ | 35.2 | $ | 20.3 | $ | 36.5 | NA | NA |
| 11/28/22 | Escient Pharmaceuticals | Series C | $ | 120.0 | $ | 237.5 | $ | 130.0 | $ | 250.0 | Dermatology | Phase II |
| 8/25/20 | Escient Pharmaceuticals | Series B | $ | 77.5 | $ | 117.5 | $ | 72.5 | $ | 150.0 | Dermatology | Preclinical |
| 8/1/22 | Structure Therapeutics | Series B | $ | 133.0 | $ | 191.0 | $ | 218.0 | $ | 351.0 | Metabolic | Phase I |
| 3/11/20 | Structure Therapeutics | Series A1 | $ | 26.0 | $ | 58.0 | NA | NA | Metabolic | Discovery | ||
| 4/29/19 | Structure Therapeutics | Series A | $ | 32.0 | $ | 32.0 | NA | NA | Metabolic | Phase I | ||
| 5/10/22 | Domain Therapeutics | Series A | $ | 42.0 | $ | 90.0 | NA | NA | Immuno-Oncology | Inactive | ||
| 2/23/21 | Teon Therapeutics | Series A | $ | 30.0 | $ | 35.0 | $ | 35.0 | $ | 63.7 | Oncology | Preclinical |
| 10/28/20 | Longboard Pharmaceuticals | Series A | $ | 56.0 | $ | 56.0 | $ | 45.0 | $ | 101.0 | Central Nervous System | Phase I |
| 5/1/19 | Confo Therapeutics | Series A | $ | 33.1 | $ | 40.4 | $ | 14.9 | $ | 48.0 | Neurology | Discovery |
| Low | $ | 15.9 | $ | 15.9 | $ | 13.7 | $ | 29.5 | ||||
| High | $ | 150.0 | $ | 250.0 | $ | 218.0 | $ | 351.0 | ||||
| Median | $ | 51.5 | $ | 57.5 | $ | 57.5 | $ | 123.0 | ||||
| Mean | $ | 66.1 | $ | 96.7 | $ | 86.2 | $ | 159.5 | ||||
| All Private Financings | ||||||||||||
| Low | $ | 11.0 | $ | 11.0 | $ | 11.3 | $ | 22.3 | ||||
| High | $ | 150.0 | $ | 250.0 | $ | 325.0 | $ | 432.0 | ||||
| Median | $ | 50.5 | $ | 59.0 | $ | 66.3 | $ | 132.5 | ||||
| Mean | $ | 64.5 | $ | 97.2 | $ | 106.6 | $ | 176.2 |
Forward-Looking Statements
This Current Report on Form 8-K and the exhibits filed or furnished herewith contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, express or implied statements regarding the structure, timing and completion of the Merger; the combined company’s listing on Nasdaq after the closing of the proposed Merger (the “Closing”); expectations regarding the ownership structure of the combined company; the anticipated timing of the Closing; and other statements that are not historical fact. All statements other than statements of historical fact contained in this Current Report on Form 8-K and the exhibits filed or furnished herewith are forward-looking statements. These forward-looking statements are made as of the date they were first issued, and were based on the then-current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. There can be no assurance that future developments affecting AVROBIO, Tectonic, the Merger or the private placement financings will be those that have been anticipated.
Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond AVROBIO’s control. AVROBIO’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to the risk that the conditions to the Closing are not satisfied. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties. These and other risks and uncertainties are more fully described in periodic filings with the SEC, including the factors described in the section titled “Risk Factors” in AVROBIO’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 14, 2024, subsequent Quarterly Reports on Form 10-Q filed with the SEC, as well as the final prospectus on Form 424(b)(3) filed with the SEC on May 3, 2024, and in other filings that AVROBIO makes and will make with the SEC in connection with the proposed Merger. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof or as of the dates indicated in the forward-looking statements. AVROBIO expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. This Current Report on Form 8-K and the exhibits filed or furnished herewith do not purport to summarize all of the conditions, risks and other attributes of an investment in AVROBIO or Tectonic.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities nor a solicitation of any vote or approval with respect to the proposed transaction or otherwise. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Important Additional Information About the Proposed Transaction
This Current Report on Form 8-K and the exhibits filed or furnished herewith are not substitutes for the registration statement or for any other document that AVROBIO has filed with the SEC in connection with the proposed transaction. In connection with the proposed transaction between AVROBIO and Tectonic, AVROBIO has filed relevant materials with the SEC, including a registration statement on Form S-4 that contains a proxy statement/prospectus of AVROBIO. AVROBIO URGES INVESTORS AND STOCKHOLDERS TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN OR MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT AVROBIO, TECTONIC, THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and stockholders may obtain free copies of the proxy statement/prospectus and other documents filed by AVROBIO with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. In addition, investors and stockholders should note that AVROBIO communicates with investors and the public using its website (https://www.avrobio.com) and the investor relations website (https://investors.avrobio.com) where anyone may obtain free copies of the proxy statement/prospectus and other documents filed by AVROBIO with the SEC and stockholders are urged to read the proxy statement/prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction.
Participants in the Solicitation
AVROBIO, Tectonic and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the proposed transaction. Information about AVROBIO’s directors and executive officers including a description of their interests in AVROBIO is included in AVROBIO’s most recent Annual Report on Form 10-K, including any information incorporated therein by reference, as filed with the SEC. Additional information regarding these persons and their interests in the proposed transaction is included in the proxy statement/prospectus relating to the proposed transaction filed with the SEC. These documents can be obtained free of charge from the sources indicated above.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AVROBIO, INC. | ||
|---|---|---|
| Date: June 4, 2024 | By: | /s/ Erik Ostrowski |
| Erik Ostrowski | ||
| President, Interim Chief Executive Officer, Chief Financial Officer and Treasurer |