SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D

 

[Rule 13d-101]

 

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO § 24.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO § 240.13D-2(a)

 

(Amendment No. 3)*

 

Homology Medicines, Inc.

(Name of Issuer)

 

Common Stock, par value $0.0001 per share

(Title of Class of Securities)

 

438083107

(CUSIP Number)

 

David Clark

Elliot Press

Deerfield Mgmt, L.P.

780 Third Avenue, 37th Floor

New York, New York 10017

(212) 551-1600

 

With a copy to:

 

Jonathan D. Weiner, Esq.

Mark D. Wood, Esq.

Katten Muchin Rosenman LLP

575 Madison Avenue

New York, New York 10022

(212) 940-8800

 

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

April 16, 2020

(Date of Event which Requires Filing of this Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ☐.

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.

 

(Continued on following pages)
(Page 1 of 12 Pages)

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

   

SCHEDULE 13D

CUSIP No.  438083107 Page 2 of 12 Pages

 

1

NAME OF REPORTING PERSONS

 

Deerfield Mgmt III, L.P.

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) ☐

(b) ☒

 

3

SEC USE ONLY

 

 

 
4

SOURCE OF FUNDS

 

AF

 
5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

 

 

 

 NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

0

 
8

SHARED VOTING POWER

 

1,825,170 (1)

 

9

 

SOLE DISPOSITIVE POWER

 

0

 

10

 

SHARED DISPOSITIVE POWER

 

1,825,170 (1)

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,825,170 (1)

 
12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

 

 

☐ 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

4.04%

 
14

TYPE OF REPORTING PERSON

 

PN

 

 

(1) Comprised of shares held by Deerfield Private Design Fund III, L.P.

  

SCHEDULE 13D

CUSIP No.  438083107 Page 3 of 12 Pages

 

1

NAME OF REPORTING PERSONS

 

Deerfield Private Design Fund III, L.P.

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) ☐

(b) ☒

 

3

SEC USE ONLY

 

 

 
4

SOURCE OF FUNDS

 

WC

 
5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

 

 

 

 NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

0

 
8

SHARED VOTING POWER

 

1,825,170

 

9

 

SOLE DISPOSITIVE POWER

 

0

 

10

 

SHARED DISPOSITIVE POWER

 

1,825,170

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,825,170

 
12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

 

 

☐ 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

4.04%

 
14

TYPE OF REPORTING PERSON

 

PN

 

 

SCHEDULE 13D

CUSIP No.  438083107 Page 4 of 12 Pages

 

1

NAME OF REPORTING PERSONS

 

Deerfield Healthcare Innovations Fund, L.P.

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) ☐

(b) ☒

 

3

SEC USE ONLY

 

 

 
4

SOURCE OF FUNDS

 

WC

 
5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

 

 

 

 NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

0

 
8

SHARED VOTING POWER

 

1,389,076

 

9

 

SOLE DISPOSITIVE POWER

 

0

 

10

 

SHARED DISPOSITIVE POWER

 

1,389,076

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,389,076

 
12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

 

 

☐ 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

3.07%

 
14

TYPE OF REPORTING PERSON

 

PN

 

  

SCHEDULE 13D

CUSIP No.  438083107 Page 5 of 12 Pages

 

1

NAME OF REPORTING PERSONS

 

Deerfield Mgmt HIF, L.P.

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) ☐

(b) ☒

 

3

SEC USE ONLY

 

 

 
4

SOURCE OF FUNDS

 

AF

 
5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

 

 

 

 NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

0

 
8

SHARED VOTING POWER

 

1,389,076 (2)

 

9

 

SOLE DISPOSITIVE POWER

 

0

 

10

 

SHARED DISPOSITIVE POWER

 

1,389,076 (2)

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,389,076 (2)

 
12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

 

 

☐ 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

3.07%

 
14

TYPE OF REPORTING PERSON

 

PN

 

 

(2) Comprised of shares held by Deerfield Healthcare Innovations Fund, L.P.

  

SCHEDULE 13D

CUSIP No.  438083107 Page 6 of 12 Pages

 

1

NAME OF REPORTING PERSONS

 

Deerfield Management Company, L.P.

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) ☐

(b) ☒

 

3

SEC USE ONLY

 

 

 
4

SOURCE OF FUNDS

 

AF

 
5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

 

 

 

 NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

0

 
8

SHARED VOTING POWER

 

3,214,246 (3)

 

9

 

SOLE DISPOSITIVE POWER

 

0

 

10

 

SHARED DISPOSITIVE POWER

 

3,214,246 (3)

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,214,246 (3)

 
12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

 

 

☐ 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.11%

 
14

TYPE OF REPORTING PERSON

 

PN

 

 

(3) Comprised of 1,825,170 shares held by Deerfield Private Design Fund III, L.P. and 1,389,076 shares held by Deerfield Healthcare Innovations Fund, L.P.

  

SCHEDULE 13D

CUSIP No.  438083107 Page 7 of 12 Pages

 

1

NAME OF REPORTING PERSONS

 

James E. Flynn

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) ☐

(b) ☒

 

3

SEC USE ONLY

 

 

 
4

SOURCE OF FUNDS

 

AF

 
5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States of America

 

 

 

 NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

7

SOLE VOTING POWER

 

0

 
8

SHARED VOTING POWER

 

3,214,246 (4)

 

9

 

SOLE DISPOSITIVE POWER

 

0

 

10

 

SHARED DISPOSITIVE POWER

 

3,214,246 (4)

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,214,246 (4)

 
12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

 

 

☐ 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.11%

 
14

TYPE OF REPORTING PERSON

 

IN

 

 

(4) Comprised of 1,825,170 shares held by Deerfield Private Design Fund III, L.P. and 1,389,076 shares held by Deerfield Healthcare Innovations Fund, L.P.

   

CUSIP No.  438083107 Page 8 of 12 Pages

 

This Amendment No. 3 (this “Amendment”) to Schedule 13D amends the Schedule 13D (as previously amended, the “Schedule 13D”) filed on April 2, 2018 by (i) Deerfield Mgmt III, L.P. (“Deerfield Mgmt III”), (ii) Deerfield Private Design Fund III, L.P. (“Deerfield Private Design Fund III”), (iii) Deerfield Mgmt, L.P. (“Deerfield Mgmt”), (iv) Deerfield Partners, L.P. (“Deerfield Partners”), (v) Deerfield Healthcare Innovations Fund, L.P. (“Deerfield Healthcare Innovations Fund”), (vi) Deerfield Mgmt HIF, L.P. (“Deerfield Mgmt HIF”), (vii) Deerfield Management Company, L.P. (“Deerfield Management”) and (viii) James E. Flynn, a natural person (“Flynn” and collectively with Deerfield Mgmt III, Deerfield Private Design Fund III, Deerfield Healthcare Innovations Fund, Deerfield Mgmt HIF and Deerfield Management, the “Reporting Persons”), with respect to the common stock (the “Common Stock”) of Homology Medicines, Inc. (the “Issuer”), as amended by Amendment Nos. 1 and 2 thereto filed on December 30, 2019 and January 31, 2020, respectively. Deerfield Private Design Fund III and Deerfield Healthcare Innovations Fund are collectively referred to herein as the “Funds”). As disclosed in Amendment No. 2 to the Schedule 13D, Deerfield Partners and Deerfield Mgmt ceased to beneficially own any shares of Common Stock as of January 30, 2020 and, therefore, are not reporting persons for purposes of this Amendment.

 

Item 5. Interest in Securities of the Issuer.

 

Items 5(a), (b) and (c) of the Schedule 13D are hereby amended and restated as follows:

 

(a)

 

  (1) Deerfield Mgmt III
       
    Number of shares: 1,825,170 (comprised of shares held by Deerfield Private Design Fund III)
    Percentage of shares: 4.04%
       
  (2)   Deerfield Private Design Fund III
       
    Number of shares: 1,825,170
    Percentage of shares: 4.04%
       
  (3)   Deerfield Healthcare Innovations Fund
       
    Number of shares: 1,389,076
    Percentage of shares: 3.07%
       
  (4) Deerfield Mgmt HIF
       
    Number of shares: 1,389,076 (comprised of shares held by Deerfield Healthcare Innovations Fund)
    Percentage of shares: 3.07%
       
  (5) Deerfield Management
    Number of shares: 3,214,246 (comprised of shares held by Deerfield Private Design Fund III and Deerfield Healthcare Innovations Fund)
    Percentage of shares: 7.11%
       
  (6) Flynn
       
    Number of shares: 3,214,246 (comprised of shares held by Deerfield Private Design Fund III and Deerfield Healthcare Innovations Fund)
    Percentage of shares: 7.11%
       

 

CUSIP No.  438083107 Page 9 of 12 Pages

 

(b)

 

  (1) Deerfield Mgmt III
     
    Sole power to vote or direct the vote:  0
    Shared power to vote or direct the vote:   1,825,170
    Sole power to dispose or to direct the disposition:  0
    Shared power to dispose or direct the disposition:   1,825,170
     
     
  (2) Deerfield Private Design Fund III
     
    Sole power to vote or direct the vote:  0
    Shared power to vote or direct the vote:  1,825,170
    Sole power to dispose or to direct the disposition:  0
    Shared power to dispose or direct the disposition:  1,825,170
     
  (3) Deerfield Healthcare Innovations Fund
     
    Sole power to vote or direct the vote:  0
    Shared power to vote or direct the vote:  1,389,076
    Sole power to dispose or to direct the disposition:  0
    Shared power to dispose or direct the disposition:  1,389,076
     
  (4) Deerfield Mgmt HIF
     
    Sole power to vote or direct the vote:  0
    Shared power to vote or direct the vote:  1,389,076
    Sole power to dispose or to direct the disposition:  0
    Shared power to dispose or direct the disposition:  1,389,076
     
  (5) Deerfield Management
     
    Sole power to vote or direct the vote:  0
    Shared power to vote or direct the vote:  3,214,246
    Sole power to dispose or to direct the disposition:  0
    Shared power to dispose or direct the disposition:  3,214,246
     
  (6) Flynn
     
    Sole power to vote or direct the vote:  0
    Shared power to vote or direct the vote:  3,214,246
    Sole power to dispose or to direct the disposition:  0
    Shared power to dispose or direct the disposition:  3,214,246

 

CUSIP No.  438083107 Page 10 of 12 Pages

 

Flynn is the managing member of the general partner of each of Deerfield Mgmt III, Deerfield Mgmt HIF and Deerfield Management.   Deerfield Mgmt III is the general partner of Deerfield Private Design Fund III, Deerfield Mgmt HIF is the general partner of Deerfield Healthcare Innovations Fund and Deerfield Management is the investment manager of the Funds.

 

(c) Transactions in the Common Stock effected by the Reporting Persons in the last sixty (60) days are set forth on Schedule A to this Amendment. All of the transactions reflected in Schedule A to this Amendment were effected in open market transactions on the Nasdaq Global Select Market in the ordinary course of the applicable Reporting Person’s business.

   

CUSIP No.  438083107

 

SIGNATURE

 

After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct.


Dated: April 20, 2020

 

  DEERFIELD MGMT III, L.P.
  By: J.E. Flynn Capital III, LLC, General Partner
     
  By:    /s/ Jonathan Isler  
  Name:   Jonathan Isler   
  Title:   Attorney-in-Fact    
     
     
  DEERFIELD PRIVATE DESIGN FUND III, L.P.
  By: Deerfield Mgmt III, L.P., General Partner
  By: J.E. Flynn Capital III, LLC, General Partner
     
  By:    /s/ Jonathan Isler  
  Name:   Jonathan Isler   
  Title:   Attorney-in-Fact    
     
     
  DEERFIELD MGMT HIF, L.P.
  By:  J.E. Flynn Capital HIF, LLC, General Partner
     
  By:   /s/ Jonathan Isler  
    Jonathan Isler, Attorney-In-Fact
     
     
  DEERFIELD HEALTHCARE INNOVATIONS FUND, L.P.
     
  By:  Deerfield Mgmt HIF, L.P., General Partner
  By:  J.E. Flynn Capital HIF, LLC, General Partner
     
  By:   /s/ Jonathan Isler  
    Jonathan Isler, Attorney-In-Fact
     
     
  DEERFIELD MANAGEMENT COMPANY, L.P.
     
  By:  Flynn Management LLC, General Partner
     
  By:    /s/ Jonathan Isler  
  Name:   Jonathan Isler   
  Title:   Attorney-in-Fact     

 

CUSIP No.  438083107

  

     
     
  JAMES E. FLYNN
     
  /s/ Jonathan Isler  
  Jonathan Isler, Attorney-in-Fact

 

 

Schedule A

 

Reporting Person Date

Number

of

Shares

Sold

Price

per

Share

($)*

Price

Range ($)** 

         

Deerfield Private Design Fund III, L.P.

3/4/2020

28,395

20.65

N/A

Deerfield Healthcare Innovations Fund, L.P.

3/4/2020

21,605

20.65

N/A

Deerfield Private Design Fund III, L.P.

4/15/2020

61,125

14.4941

14.00 - 14.50

Deerfield Healthcare Innovations Fund, L.P.

4/15/2020

46,508

14.4941

14.00 - 14.50

Deerfield Private Design Fund III, L.P.

4/15/2020

1,224

15.6026

15.00 - 15.975

Deerfield Healthcare Innovations Fund, L.P.

4/15/2020

931

15.6026

15.00 - 15.975

Deerfield Private Design Fund III, L.P.

4/16/2020

223,965

14.4916

14.115 - 15.08

Deerfield Healthcare Innovations Fund, L.P.

4/16/2020

170,405

14.4916

14.115 - 15.08

Deerfield Private Design Fund III, L.P.

4/16/2020

3,862

15.4002

15.40 -15.75

Deerfield Healthcare Innovations Fund, L.P.

4/16/2020

2,939

15.4002

15.40 -15.75

Deerfield Private Design Fund III, L.P.

4/17/2020

174,185

13.5569

13.495 - 14.045

Deerfield Healthcare Innovations Fund, L.P.

4/17/2020

132,159

13.5569

13.495 - 14.045

Deerfield Private Design Fund III, L.P.

4/17/2020

3,273

14.50

N/A

Deerfield Healthcare Innovations Fund, L.P. 4/17/2020 2,483 14.50 N/A

 

* Each price per share reported in the “Price per Share” column of this Schedule A, other than the price per share for the sale of 50,000 shares of Common Stock on March 4, 2020 in a single transaction and the sale of 5,756 shares of Common Stock on April 17, 2020, is a weighted average price. The Reporting Persons undertake to provide to the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the ranges set forth in the “Price Range” column of this Schedule A.

 

** The shares were sold in multiple transactions at prices within the price range indicated (unless otherwise indicated).