Gene Therapy Player Amicus Therapeutics Terminates SPAC Merger, Shares Fall

Amicus Therapeutics Inc FOLD has terminated its plans to spin off its gene therapy assets, citing 'existing market conditions.'
With "market conditions" sinking the planned merger with ARYA Sciences Acquisition Corp IV ARYD, Amicus plans to prioritize its gene therapy pipeline as part of a push to generate $400 million in net savings through 2026.
By merging its gene therapy unit with Perceptive Advisors' ARYA Sciences Acquisition Corp IV, Amicus planned to reduce its outgoings and step up its push for profitability.
The deal would have given Amicus a chance to profit from the success of the spinout via a 36% stake in the Company but free it from the cost of developing a gene therapy pipeline.
Neither Amicus nor the SPAC will pay a termination fee as the decision was mutual.
The termination of the SPAC merger affects the future of Amicus CEO John Crowley, who was set to swap his current position for the chance to lead the spinout.
With the merger collapsing, Crowley plans to step aside as CEO in August, vacate the position for Bradley Campbell as previously planned, and start a two-year stint as executive chairman of Amicus.
Earnings: Amicus' FY21 sales increased 17% Y/Y to $305.5 million.
Cash, cash equivalents, and marketable securities totaled $482.5 million.
The Company reported an EPS loss of $(0.92) compared to $(1.07) a year ago.
Guidance: For FY22, the Company anticipates total Galafold revenue of at least $350 million to $365 million, up 15% - 20% Y/Y.
Price Action: FOLD shares are down 2.06% at $8.08 during the market session on the last check Thursday.

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