Second Sight Medical notified Pixium that it decided to unilaterally terminate a memorandum of understanding (MOU) ahead of a planned merger.
In a news release, Pixium said the $27.9 million private placement recently announced and closed by Second Sight was “not only explicitly prohibited under the terms of the [MOU] entered into by the companies on Jan. 5, 2021, but also detrimental to Pixum Vision’s interests.”
Paris-based Pixium said it offered to Second Sight a chance to renegotiate the MOU in order to continue pursuing the business combination while preserving contractual balance and the interests of the company and its shareholders, but the company said Second Sight never responded to the proposals, nor did it demonstrate any willingness to reach such an agreement.
Following the refusal to enter renegotiation discussions, Second Sight notified Pixium on Friday that it decided to terminate the MOU, notwithstanding that the MOU does not provide the company with this right, according to Pixium.
Pixium said it acknowledges the “wrongful termination” of the MOU and the planned merger by Second Sight and is considering all measures available, including potential legal proceedings, to preserve its rights and receive compensation for any damages.
“While we are naturally disappointed in the position being taken by Second Sight and that this business combination has not proceeded, Pixium Vision is in a strong position both financially and clinically, with a world-class research & development team and core expertise in vision neuromodulation and a solid patent portfolio,” Pixium CEO Lloyd Diamond said in the release. “We are continuing our transition from a research organization to a commercially oriented company with the recent initiation of our PRIMAvera pivotal trial of the Prima System. Our ambition is to be the first company in the world to bring a retinal implant solution to the millions of people worldwide suffering with Dry-AMD and expand this to other retinal diseases.
“This is supported by the newly reported data showing patients could simultaneously use prosthetic central vision generated with the Prima System and their remaining peripheral vision. We are well positioned to continue the development of this exciting bionic vision system and bring it to market to improve patients’ quality of life.”