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

Sirona Biochem, a Canadian cosmetic ingredient and drug discovery company, is facing significant challenges as its licensing agreement with AbbVie's Allergan Aesthetics falls apart and multiple financing attempts fail to materialize. The company is now taking drastic measures, including the liquidation of its R&D subsidiary, to navigate through these troubled waters.

Allergan Deal Termination

Sirona Biochem revealed that Allergan has backed out of plans to commercialize TFC-1067, a key compound in their 2022 agreement. The deal, which would have allowed Allergan to develop and commercialize topical skin care treatments based on Sirona's TFC-1067, was seen as a major opportunity for the skin-focused biotech. TFC-1067 was developed as an alternative skin-lightening treatment to hydroquinone, and the collaboration aimed to explore various skin treatments derived from TFC-1067-related patents.

Despite the setback, Sirona expressed appreciation for the experience gained through the collaboration, 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 fallen through:

1. A strategic investment from German investor Promura, expected to total 15 million Canadian dollars ($10.9 million), failed to materialize despite "multiple assurances and repeated delays."

2. A planned private placement of unsecured, convertible debentures aimed at raising $400,000 "did not attract sufficient investor participation to proceed successfully."

These financial setbacks have left Sirona in a precarious position, with the company revealing that its Vancouver-based management team has been working without payment for the last two years and personally contributing funds to sustain essential operations.

R&D Subsidiary Liquidation and Future Uncertainty

In response to its dire financial situation, 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.

The company acknowledged that "the commercial potential of its proprietary technologies remains uncertain" but stated it is "evaluating structural and financial options that could, if feasible, support their future development."

This latest setback follows Sirona's unsuccessful attempts to break into the pharmaceutical market with TFC-039, a sodium-glucose cotransporter 2 inhibitor for diabetes, which failed to find a partner in 2023.

As Sirona Biochem grapples with these significant challenges, the future of the company and its innovative skin care and drug discovery programs remains uncertain. The pharmaceutical industry will be watching closely to see if Sirona can overcome these obstacles and find a path forward in the competitive world of cosmetic and drug development.