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Half year results as of June 30, 2019

September 12, 2019

LONDON, Silence Therapeutics, PLC (LON: SLN) ("Silence" or "The Company"), a leader in the discovery, development and delivery of novel RNA therapeutics for the treatment of major diseases, today announced unaudited interim results for the six months ended June 30, 2019.

Operational highlights

  • SLN124 Clinical Trial Application for the treatment of β-thalassemia and myelodysplastic syndrome (MDS), filed in the first quarter of 2019, with the patient's first intake expected before the end of the year
  • SLN124 received orphan drug designation from the European Medicines Agency for the treatment of β-thalassemia
  • SLN360, an Lp (a) -targeted siRNA for the treatment of cardiovascular disease, completed IND-enabling trials in February 2019 and is on its way to becoming an IND and / or CTA in the second half of 2020
  • SLN500 has moved to nonclinical development (see events after the period below)
  • Reinforcement of the management team by Dr. Ing. Rob Quinn as Chief Financial Officer and Dr. Giles Campion as Head of R & D and Chief Medical Officer
  • The Board has been upgraded to the appointment of Iain Ross as Chairman and James Ede-Golightly as Non-Executive Director
  • Collaboration with Genomics England to identify novel target genes associated with human disease

Financial highlights

  • Loss after tax of GBP 8.2m (first half of 2018: GBP 8.7m). Operating expenses in the first half of 2019 are attributable to higher R & D expenses for SLN124 in preparation for the clinic's entry into the clinic
  • Cash and cash equivalents and term deposits of £ 16.5 million (FY 2018: £ 26.5 million)
  • Net cash used in operating activities £ 10.3m (H1 2018: £ 8.8m)

Events after the period

  • In July 2019, Mallinckrodt announced a collaboration with Pharmaceuticals to develop and commercialize RNAi therapeutics for complement-mediated diseases
    • Under the agreement, Mallinckrodt will receive an exclusive worldwide license for a preclinical product targeting a particular complement pathway protein, C3 (SLN500), as well as an option for up to two additional products with different complement protein targets
    • Silence has received an upfront payment of $ 20 million, which offers the potential for short and long-term development as well as commercial milestones and royalties on net sales
  • Mallinckrodt stake of $ 5 million in exchange for 5,062,167 new ordinary shares
  • Cash and cash equivalents and time deposits amounting to GBP 36.0 million as of 31 August 2019
  • Dr. Steven Romano was appointed to the Board of Directors as part of the stock purchase agreement with Mallinckrodt as Non-Executive Director, and Jørgen Wittendorff was appointed to the management team as Head of Manufacturing

Dr. David Horn Solomon, CEO of Silence Therapeutics, commented:
"The first half of 2019 was critical to Silence's breakthrough collaboration with RNAi After months of business development work in the first half of the year, Mallinckrodt reached an agreement that provided us with a substantial liquidity injection through pre-participation and equity participation, and provided significant development and commercial milestones. We have made excellent progress in returning to the clinic with SLN124 and expect to treat our first patient in the second half of 2019. We are pleased with the potential of this drug to treat patients with serious conditions such as β-thalassemia. We have good capitalization to achieve our strategic goals as we continue to increase shareholder value and provide hope for rare and serious disease patients. "

Iain Ross, Chairman of Silence Therapeutics. comments: "We have made significant progress in our three main R & D programs, signed an important, confirming partnership with Mallinckrodt and significantly strengthened our balance sheet. The leadership team, under the dedicated direction of David Horn Solomon, has been significantly strengthened by important attitudes and revitalized the Board of Directors through the appointment of three senior board members.

As new Chairman of Silence, I was impressed by the commitment of the management team and the innovation of the company's scientists. I thank the entire Silence team for their continued hard work and the shareholders for their continued support. I believe we are now well positioned for the future and will continue to implement our strategic goals to increase value for all our stakeholders. "

Requests:

Silence Therapeutics plc

Dr. David Horn Solomon, CEO

Tel.: +44 (0) 20 3457 6900

Peel Hunt LLP (appointed advisor and broker)

James Steel / Oliver Jackson

Tel.: +44 (0) 20 7418 8900

European IR

Consilium Strategic Communications

Mary-Jane Elliott / Chris Welsh / Angela Gray

silencetherapeutics @ consilium-comms.com

Tel.: +44 (0) 20 3709 5700

US IR

Westwicke Partners

Peter Vozzo

peter.vozzo@westwicke.com

Tel: +1 (443) 213-0505

About Silence Therapeutics plc

Silence Therapeutics is developing a new generation of drugs by utilizing the body's own mechanism of RNA interference (RNAi) in its cells. Its proprietary technology can selectively inhibit any gene in the genome and selectively block the production of disease-causing proteins. By using its activating delivery systems, an additional level of specificity has been achieved by delivering its therapeutic RNA molecules exclusively to target cells. Silence's proprietary RNA chemistry and delivery systems improve the stability of our molecules and the effective delivery to target cells. They offer powerful modular technology that is well-suited for combating life-threatening diseases. Silence Therapeutics remains focused and determined to respond to the creation of shareholder value, as well as the commensurate growth and development of its business. Silence Therapeutics continues to review a number of options in addition to its Bio Plan, which it believes will increase the Company's future growth prospects and shareholder value. This may include capital raising and other strategic licensing and cooperation opportunities.

Further information can be found at: https: //www.silence-therapeutics.com/

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