Restructuring Activities

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring Activities

12. Restructuring Activities

In January 2022, the Company announced the deprioritization of AVR-RD-01, its investigational gene therapy program for Fabry disease. This decision was made due to several factors, including new clinical data showing variable engraftment patterns from the five most recently dosed patients in the Company’s Phase 2 clinical trial of AVR-RD-01 for the treatment of Fabry disease, which the Company refers to as the FAB-GT clinical trial. The emergence of such new data would have significantly extended the program’s development timeline. That development, coupled with an increasingly challenging market and regulatory environment for Fabry disease, were among the primary factors leading to the Company’s deprioritization of its Fabry program. As a result of the deprioritization, the Company has stopped enrollment of its Phase 2 FAB-GT clinical trial and has shifted focus to its other pipeline programs.

In connection with the deprioritization of AVR-RD-01 noted above, in January 2022, the Company approved changes to the Company’s organization as well as a broader operational cost reduction plan. As part of this plan, the Company approved a reduction in the Company’s workforce by approximately 23% across different areas and functions in the Company (the “Workforce Reduction”).

Under the Workforce Reduction, the Company recognized total restructuring expenses for the three and six months ended June 30, 2022 of $0 and $1,369, respectively. No restructuring expenses were incurred for the three and six months ended June 30, 2021. These one-time employee termination benefits are related to affected employees, who were offered separation benefits, including severance payments. During the three and six months ended June 30, 2022 approximately $45 and $1,369 of these payments were made. There are no accrued remaining payments at June 30, 2022.

The outstanding restructuring liabilities are included in accrued expenses and other current liabilities on the consolidated balance sheets. The following table summarizes the charges related to the restructuring activities as of June 30, 2022:

	Employee Severance and Other Benefits
Liability included in accrued expenses and other current liabilities at January 1, 2022	$	—
Restructuring expenses		1,369
Cash payments		(1,369	)
Liability included in accrued expenses and other current liabilities at June 30, 2022	$	—