TIDMSYNC
RNS Number : 6161D
Syncona Limited
27 June 2019
Syncona Limited
Sale of Blue Earth Diagnostics to Bracco Imaging
27 June 2019
-- Blue Earth Diagnostics has agreed to be acquired by Bracco
Imaging for $450 million (GBP354.3 million)[1] plus closing
adjustment estimated at $25 million (GBP19.7 million)[2]
-- Syncona will receive net proceeds of GBP337 million[3] for
its 89 per cent holding; a 10.0x multiple, including prior
distributions,[4] on original investment of GBP35.3 million and an
internal rate of return (IRR) of 87 per cent[5]
-- These proceeds represent an uplift of GBP69.8 million (10.4p
per share) to Syncona's holding value of GBP267.5 million[6]
Syncona Ltd today announces that it has reached an agreement to
sell its portfolio company Blue Earth Diagnostics ("Blue Earth") to
Bracco Imaging, a global leader in diagnostic imaging for $450
million (GBP354.3 million) plus closing adjustment estimated at $25
million (GBP19.7 million). The sale delivers a 10.0x multiple,
including prior distributions, on invested capital for Syncona.
Blue Earth is a leader in the radio-diagnostic space. As a
commercial stage company which launched Axumin, the standard of
care for the diagnosis of recurrent prostate cancer patients in the
USA, Blue Earth demonstrates the benefits of Syncona's long-term
approach to founding, building, and funding companies developing
transformational products for patients. Since foundation in 2014,
the business has successfully completed phase 3 clinical
development, secured its first product approval, delivered a
successful commercial launch, achieved profitability and acquired a
second asset to embed its leadership in the prostate imaging space.
More than 50,000 patients have been dosed with Axumin since its
launch in 2017 enabling physicians to diagnose patients with
recurrent prostate cancer more effectively. Blue Earth will now
progress to a new strategic owner in the diagnostic imaging field
for the next stage of its growth.
The sale of Blue Earth will generate GBP337 million of net
proceeds, further strengthening Syncona's strategic capital pool
and enhancing its ability to build and fund its portfolio companies
to succeed over the long term. These companies are scaling rapidly,
with a number of significant financings anticipated in the current
financial year. In particular, Freeline, Gyroscope and Achilles
have recently received the final tranches of previously committed
funding and are expected to conduct new financings. Since 31 March
2019, Syncona has deployed GBP64.1 million([7]) of capital into its
portfolio companies and will continue to fund them ambitiously as
the companies scale to capitalise on the opportunities available to
them, subject to its disciplined approach to the allocation of
capital across the portfolio.
Martin Murphy, Chief Executive Officer of Syncona Investment
Management Limited, said, "Blue Earth clearly demonstrates the
success of Syncona's strategy to found, build and fund innovative
companies. In the five years since we founded the business
alongside Jonathan Allis and his team, we have successfully
delivered a high impact product which is transforming how patients
with recurrent prostate cancer are managed, having been used in
over 50,000 patients. We are proud of this landmark achievement,
which is testament to the utility of the product and the
exceptional work of the Blue Earth and Syncona teams.
"Having now grown Blue Earth into a profitable, marketed product
company with the foundations for sustainable long-term growth in
place, we are delighted that a new strategic owner will continue to
develop the business through its next chapter. Syncona looks
forward to redeploying the proceeds to fund both our growing
portfolio companies as they scale and exciting new opportunities as
they emerge, ultimately with the goal of bringing more
transformational products to patients."
Jonathan Allis, D.Phil., Chief Executive Officer, Blue Earth
Diagnostics said: "The acquisition of Blue Earth by Bracco Imaging
is a validation of the quality of our people, our pipeline of novel
diagnostic agents such as rhPSMA and the proven success of Axumin
for imaging in prostate cancer and potentially other future
indications. We believe this acquisition is excellent for Blue
Earth, as Bracco Imaging's global footprint and clinical research
and marketing support will enable us to expand the reach of our
high-value platform of innovative radiopharmaceuticals to inform
clinical management and guide care for even more people with cancer
around the world. We are so proud of our exceptional,
patient-focused team for building a successful radiopharmaceuticals
business in only five years. We also wish to acknowledge Syncona
for its role in the foundation of the company, and its operational
and financial acumen as we have built the business."
Closing of the sale is conditional upon, among other customary
closing conditions, the expiration or termination of any applicable
waiting periods under the Hart-Scott-Rodino Antitrust Improvements
Act. Closing is expected to occur in the third quarter of calendar
year 2019.
[ENDS]
Enquiries
Syncona Ltd
Siobhan Weaver / Annabel Clay
Tel: +44 (0) 20 3981 7940
FTI Consulting
Brett Pollard / Ben Atwell / Natalie Garland-Collins
Tel: +44 (0) 20 3727 1000
This announcement includes information that is inside
information as defined in Article 7 of the Market Abuse Regulation
(EU) No.596/2014. The person responsible for arranging for the
release of this announcement on behalf of Syncona Ltd is Andrew
Cossar, General Counsel, SIML.
Copies of this press release and other corporate information can
be found on the company website at: www.synconaltd.com
About Syncona
Syncona is a leading FTSE250 healthcare company focused on
founding, building and funding global leaders in life science. Our
vision is to deliver transformational treatments to patients in
truly innovative areas of healthcare while generating superior
returns for shareholders.
We seek to partner with the best, brightest and most ambitious
minds in science to build globally competitive businesses.
We take a long-term view, underpinned by a deep pool of capital,
and are established leaders in gene and cell therapy. We focus on
delivering dramatic efficacy for patients in areas of high unmet
need.
About Blue Earth Diagnostics
Blue Earth Diagnostics is a leading molecular imaging
diagnostics company focused on the development and
commercialization of novel PET imaging agents to inform clinical
management and guide care for cancer patients in areas of unmet
medical need. Formed in 2014, Blue Earth Diagnostics is led by
recognized experts in the clinical development and
commercialization of innovative nuclear medicine products. The
company's first approved and commercially available product is
Axumin(R) (fluciclovine F 18), a novel molecular imaging agent
approved in the United States and European Union for use in PET
imaging to detect and localize prostate cancer in men with a
diagnosis of biochemical recurrence. The company's pipeline
includes Prostate Specific Membrane Antigen (PSMA)-targeted
radiohybrid ("rh") agents. rhPSMA is a clinical-stage,
investigational class of theranostic compounds, with potential
applications in both the imaging and treatment of prostate
cancer.
About Bracco Imaging
Bracco Imaging S.p.A., part of the Bracco Group, is one of the
world's leading companies in the diagnostic imaging business with
2018 revenues exceeding EUR1 billion. Headquartered in Milan,
Italy, Bracco Imaging develops, manufactures and markets diagnostic
imaging agents and solutions.
Bracco Imaging offers a product and solution portfolio for all
key diagnostic imaging modalities: X-ray Imaging (including
Computed Tomography-CT, Interventional Radiology, and Cardiac
Catheterization), Magnetic Resonance Imaging (MRI), Contrast
Enhanced Ultrasound (CEUS), and Nuclear Medicine through
radioactive tracers. The diagnostic imaging portfolio is completed
by a range of medical devices and advanced administration systems
for contrast imaging products.
The Company operates in over 100 markets worldwide, either
directly or indirectly, through subsidiaries, joint ventures,
licenses and distribution partnership agreements. Bracco Imaging
has a strong presence in key geographies: North America, China,
Europe, Japan, Brazil, Mexico and South Korea. To learn more about
Bracco Imaging, visit www.braccoimaging.com.
[1] Foreign exchange rates at 26 June 2019
[2] As per footnote 1
[3] Including equity shares, repayment of preference shares and
accumulated dividends; final proceeds are subject to minor
adjustments ahead of closing
[4] GBP14.2m distribution in 2019 financial year
[5] Including the GBP14.2m distribution in 2019 financial year,
FX rates as at 26 June 2019, assuming closing August 2019; Syncona
Partners original cost.
[6] As at 31 March 2019
[7] At 26 June 2019
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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