Company: SION
Filing Date: 2025-02-07
Form Type: 424B4
Source: 0001193125-25-022709
Chunk: 347

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-02-07
Form: 424B4
Chunk 347
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 three
clinical-stage CFTR modulator therapies: galicaftor (ABBV-2222, now referred to as SION-2222), a TMD1-directed CFTR corrector, navocaftor (ABBV-3067, now referred to as SION-3067), a CFTR potentiator, and ABBV-2851 (now referred to as SION-2851), a
TMD1-directed corrector. The license granted to us under the AbbVie License Agreement is subject to certain preexisting rights held by AbbVie and Galapagos NV (“Galapagos”). In particular, certain of the licensed patents and other
intellectual property rights were developed by or on behalf of Galapagos and are sublicensed to us subject to the terms of the second amended and restated collaboration agreement between Galapagos and AbbVie in October 2018 (the “Galapagos
License Agreement”), as amended by a side letter between Galapagos and AbbVie in July 2024.

As initial consideration for the license, the
Company paid a non-refundable, upfront payment of $5.0 million and issued 1,414,445 shares of its common stock to AbbVie. The Company determined that the AbbVie License Agreement represented an asset
acquisition as it did not meet the definition of the business. The Company recorded the total initial consideration as research and development expense because the acquired license represented in-process
research and development with no alternative future use. In addition, the Company is required to pay AbbVie a total of up to $360.0 million upon achievement of certain development and commercial milestones, consisting of up to
$70.0 million in late-stage development milestones and up to $290.0 million in commercial milestones. The Company is also required to pay royalties to AbbVie in the low to mid single-digit percentage range based on net sales of licensed
products, subject to customary reductions and offsets.

In addition, we are required to pay AbbVie up to $130.0 million in commercial and
sales-based milestone payments, mid to high single-digit royalties on the licensed products, or other payments due to Galapagos pursuant to the Galapagos License Agreement, to the extent such payments are triggered by our use of the licensed rights
owned by Galapagos under the AbbVie License Agreement.

Stock Split

The Company’s Board approved a 1-for-1.4611 reverse