Company: SION
Filing Date: 2025-01-17
Form Type: S-1
Source: 0001193125-25-008474
Chunk: 193

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-01-17
Form: S-1
Chunk 193
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ares of royalty payments to CFF in the low single-digit percentage range based on net sales of licensed products, subject to customary reductions
and offsets. Such milestone and royalty payments shall be reduced for products covered by derived patents. The royalty term will terminate on a product-by-product and country-by-country basis upon the later of (i) the expiration of the last-to-expire valid
claim within the relevant patent rights that claims such product or its exploitation in such country, (ii) the tenth anniversary of the first commercial sale of a product in such country and (iii) expiration of regulatory exclusivity of a
product in such country. Further, a side letter was executed between us and Sanofi, which clarifies the relationship between us, Sanofi and CFF, under which we are obligated to pay Sanofi 20% of the milestones it would have been obligated to pay
CFF, net of the milestone amounts it is obligated to pay under the Sanofi License Agreement.

If at any time prior to the first commercial sale of a
product developed as a result of the CFF Payment Agreement, we cease to use commercially reasonably efforts to develop, and obtain and maintain regulatory approvals for, at least one of our products for therapeutic, prophylactic, prognostic or
diagnostic uses in or for humans in specified major markets for a continuous period of 365 days, CFF has the option to exercise rights to an exclusive, irrevocable, worldwide interruption license under our patents, the licensed patents and the
licensed know-how, to develop, manufacture, use, sell, offer to sell and import any of our products containing a licensed compound or any compound covered by a licensed patent or incorporating licensed know-how.

Either party may terminate the CFF Payment Agreement for a material breach by the other party, subject
to a specified notice and cure period. Unless earlier terminated, the CFF Payment Agreement

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will expire (a) with respect to each product in each country, upon the expiration of the last-to-expire
royalty term in such country, and (b) with respect to the CFF Payment Agreement in its entirety, upon the later of (i) the expiration of the royalty term for the last licensed product for which there has been a first commercial sale or
(ii) the expiration or termination of our obligation to pay consideration to Sanofi under the Sanofi License Agreement.

AbbVie License Agreement

On July 11, 2024, we entered into a license agreement (the “Abb