Once high-flying Dallas biotech sees promising drug data amid growing financial pressure

Months after narrowing its focus and laying off over a third of its staff, Taysha Gene Therapies is forging ahead on two treatments for rare genetic diseases as it stares down the end of its current funding runway. The Dallas biotech company could bring one of those therapies, for a disorder called giant axonal neuropathy, to market as early as the end of 2023, CEO and president RA Session II told investors in a recent call about the company’s financial results. That would be a major milestone for Taysha, which launched with an explosive start two years ago that saw it go public in a mere five months. It raised hundreds of millions of dollars from its IPO and private investors.

But Taysha now only has enough cash to continue its research and work on a new manufacturing facility until the middle of next year, with its long-term ability to meet financial obligations uncertain, the company said in regulatory filings. Executives plan to seek additional financing, collaborations or licensing agreements, but those have yet to be finalized. “These conditions and events raise substantial doubt about the company’s ability to continue as a going concern,” according to its regulatory filing. Taysha’s filing said the company has enough cash to cover operating expenses until late next year, but needs more capital for other costs like manufacturing activities and research into product candidates. Taysha representatives weren’t available for an interview to discuss the company’s drug tests and finances, said chief corporate affairs officer Kimberly Lee in an email to The Dallas Morning News. Clinical data found that one of Taysha’s therapies led to an improvement in indicators of nerve function for patients with GAN, a very rare disorder that affects the nervous system and is ultimately fatal. The company expects to get more regulatory feedback on the therapy by the end of the year, including from the Food and Drug Administration.