Sirona Biochem Faces Setbacks as Allergan Deal Collapses and Financing Plans Fail

R&D Subsidiary Liquidation Looms Amid Financial Struggles

Sirona Biochem, a Canadian cosmetic ingredient and drug discovery company, is facing significant challenges as its licensing agreement with AbbVie's Allergan Aesthetics has fallen through and multiple financing efforts have failed to materialize. The company is now taking drastic measures, including the liquidation of its French R&D subsidiary, TFChem.

Allergan Deal Termination

In 2022, Sirona signed a promising agreement with Allergan Aesthetics, a subsidiary of AbbVie, for the development and commercialization of topical skin care treatments based on Sirona's TFC-1067 compound. TFC-1067 was developed as an alternative to hydroquinone for skin lightening. However, Sirona recently announced that Allergan has withdrawn from plans to commercialize TFC-1067, bringing an early end to the collaboration.

Despite the setback, Sirona expressed appreciation for the opportunity to work with a global leader in medical aesthetics, stating, "Sirona values the experience gained through this collaboration and appreciates the opportunity to have worked with a global leader in medical aesthetics."

Failed Financing Attempts

Compounding the company's troubles, Sirona's efforts to secure much-needed funding have been unsuccessful. Two potential financing avenues announced in April have both collapsed:

1. A strategic investment from German investor Promura, which was expected to provide 3 million Canadian dollars ($2.2 million) initially, with an additional 12 million Canadian dollars ($8.7 million) for a new antiaging joint venture called Sirona Laboratories.

2. A private placement of unsecured, convertible debentures aimed at raising $400,000.

Sirona revealed that after "multiple assurances and repeated delays," the funds promised by Promura were never received. The company has concluded that this investment will not materialize. Additionally, the private placement "did not attract sufficient investor participation to proceed successfully."

Financial Crisis and R&D Closure

The failure to secure funding has pushed Sirona into a dire financial situation. The company disclosed that its Vancouver-based management team has been working without payment for the past two years and has personally contributed funds to maintain essential operations.

As a result of these financial constraints, Sirona is moving to liquidate its France-based development subsidiary, TFChem. The unit's laboratories, where Sirona conducted its work on developing new glycomimetic compounds, have already been closed.

"Despite ongoing and significant challenges, management acknowledges that the commercial potential of its proprietary technologies remains uncertain," Sirona stated. The company is currently evaluating structural and financial options that could potentially support future development of its technologies.