Company: SION
Filing Date: 2025-01-17
Form Type: S-1
Source: 0001193125-25-008474
Chunk: 133

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-01-17
Form: S-1
Chunk 133
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 License Agreement

In December 2019, we entered into a license agreement, which has been subsequently amended (as amended, the “Sanofi License Agreement”), with
Sanofi, pursuant to which we have been granted an exclusive, worldwide, sublicensable, royalty-bearing license to develop and commercialize products using the licensed compounds and know-how for CFTR modulator
therapies. The licensed and derived rights are being utilized in SION-719, SION-109 and SION-451.

As initial consideration for the license, we paid a non-refundable, upfront payment of $1.5 million, as
well as a reimbursement of $0.3 million for Sanofi’s research and development expenses, which was recorded as research and development expense in the condensed consolidated statements of operations and comprehensive loss because the
acquired license represented in-process research and development with no alternative future use. In addition, we are required to pay Sanofi a total of up to $40.0 million upon achievement of certain
late-stage developmental and commercial milestones. The developmental milestone payment will be recorded when the milestone is achieved, and the commercial milestone payment and royalties will be recorded when the sales occur. As of
September 30, 2024, none of such milestones have been achieved. We are also required to pay royalties to Sanofi in the low single-digit percentage range based on net sales of licensed products, subject to customary reductions and offsets. Such
royalty payments shall be reduced for products covered by derived patents.

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CFF Payment Agreement

In December 2019, we entered into a payment agreement (the “CFF Payment Agreement”) with CFF, pursuant to which we agreed to provide CFF with
compensation in exchange for the grant of, or forbearance from exercising, certain of CFF’s rights existing under the license agreement, by and between CFF (through an assignment by Cystic Fibrosis Foundation Therapeutics, Inc.) and Genzyme
Corporation, an affiliate of Sanofi (the “CFFT-Genzyme Agreement”). Under the CFF Payment Agreement, we are obligated to compensate CFF in connection with our development and commercialization of
licensed products under the Sanofi License Agreement.

As initial consideration for CFF’s grant of, and forbearance from exercising, its rights
under the CFFT-Genzyme Agreement, we paid an upfront fee of $0.2 million and issued CFF 300,300 shares of our Series