Modalis Therapeutics Corporation announced the expiration of its research collaboration with Astellas Pharma Inc. (hereinafter "Astellas"). Modalis and Astellas have been pursuing their collaboration program through discovery activities with Modalis' proprietary technology, CRISPR-GNDM. Astellas has notified the company of its decision not to extend the joint research program for MDL-204 or exercise its right to negotiate a license agreement for the pipeline for strategic reasons.

MDL-204 targeted a disease of the central nervous system. The collaboration began 2019. After evaluation by both parties, it was determined that the CRISPR-GNDM® platform could not deliver a differentiated approach for this target, and therefore, the parties have agreed not to extend the collaboration beyond thecurrent expiration date at the end of December 2021.

Although the advantage of the CRISPR-GNDM® technology was not fully realized in this program, the company believe it is due to the highly competitive landscape for this specific target. Astellas continues to explore the existing programs licensed to it, MDL-201 and MDL-202, currently in the pre-clinical stage. With the removal of MDL-204 from the collaborative pipeline, the Company's collaboration pipeline is reduced to three products.

Together with the four products that are being developed in-house, the Company will have a total of seven products. The impact of this matter on the Company's consolidated financial results for the fiscal year ending December 31, 2021, is expected to be minimal.