TransCode Therapeutics Publishes Open Letter Outlining Company’s Progress and Objectives - Seite 2

We plan to submit an IND to the FDA in the first quarter of 2024 to support a proposed Phase 1 clinical trial of TTX-MC138, also in patients with advanced solid tumors. Key GMP manufacturing activities are in process and IND-enabling toxicity studies in support of our IND submission have been completed.

Partnership Developments

Our ongoing conversations with industry leaders have generated increased awareness about the potential of our technologies. We are in partnership discussions with several pharma companies regarding development of several of our preclinical programs including TTX-mRNA, TTX-CRISPR, and TTX-siRNA. Initial collaborations would likely be proof-of-concept studies that could potentially lead to more significant development arrangements. We believe that these collaborations, if consummated, will expedite development of our targeted therapies through utilization of our proprietary delivery platform.

Streamlining of Operations

In response to the challenging financial landscape, we have taken decisive actions to reduce expenses without compromising our commitment to innovation and progress. We have reviewed company operations to identify areas in which we could delay or reduce expenditures including a reduction in headcount from 19 employees at the end of 2022 to 11 at the end of 2023. These steps are aimed at minimizing our cash burn and allowing us to focus substantially all our efforts into the timely initiation of a Phase I clinical trial for our lead compound, TTX-MC138.

In addition, we have implemented sizable temporary salary reductions for senior management to demonstrate our collective determination to navigate the current economic challenges while preserving the core of our organization.

Despite the headwinds, TransCode remains dedicated to innovation and collaboration.

Proposed Reverse Stock Split

Our board of directors has put a proposal before shareholders for a reverse stock split. We are not only managers of the company, but shareholders as well. A number of us worked with no cash compensation for lengthy periods prior to our IPO – something rarely, if ever, seen in biotech. Our compensation came in the form of shares of stock, so we are acutely aware of the pain that can result from reverse splits. Our reason for requesting your approval of the reverse stock split is that, based on discussions with investment bankers, our ability to raise the additional capital needed to continue funding our business plan drastically improves with a share price that is multiples above current levels. Further, capital is needed very soon as we have until January 22, 2024, to demonstrate to Nasdaq that we are on-track with our plan to regain and sustain compliance with its stockholders’ equity requirement. We believe that the reverse split is essential to enabling us to achieve this objective.