TIDMSYNC
RNS Number : 6363I
Syncona Limited
12 August 2019
Syncona Limited
Quarterly Update
12 August 2019
Syncona Ltd, a leading healthcare company focused on founding,
building and funding global leaders in life science, today issues
its quarterly update covering the period from 1 April to 30 June
2019.
Strong progress across Life Science companies during the
quarter
-- Sale of Blue Earth Diagnostics (Blue Earth) to Bracco Imaging
(Bracco) announced, valuing Syncona's holding at GBP336.9 million,
a GBP69.4 million uplift to carrying value and a 10.0x return[1] on
original investment
-- Completion of the acquisition of Nightstar by Biogen with
GBP255.8 million of proceeds received in the period, representing a
4.5x return on original investment
-- Syncona investment of $24.0 million in a $109.0 million
follow on financing in Autolus and initial positive data from the
AUTO1 adult ALL Phase 1/2 trial
-- Merger of Gyroscope and Orbit to create world's first
end-to-end retinal gene therapy company
-- Foundation of Quell Therapeutics (Quell) in an emerging area
of cell therapy and appointment of world-class Chief Executive,
Iain McGill
-- Strategic capital pool of GBP580.2 million[2]; capital
deployment of GBP64.1 million over the three months in line with
Syncona's strategy to fund its companies over the long-term
-- Net assets of GBP1,352.1 million, 201.4p per share, a total
return of (7.0) per cent over the three months with the GBP69.4
million uplift from the sale of Blue Earth outweighed by the 48.8
per cent decline in Autolus' share price in the period, despite the
company's strong fundamentals
Martin Murphy, CEO, Syncona Investment Management Limited, said:
"We are pleased with the strong progress made across our companies,
delivering a number of financial and operational milestones. The
sale of Blue Earth achieved excellent risk-adjusted returns for
shareholders following the successful development and launch of
Axumin which has transformed how patients with recurrent prostate
cancer are managed.
"As we look forward, we continue to have a high-level of
conviction in our companies' long-term fundamentals. Our strategic
capital pool underpins our approach to pursue exciting new
opportunities and fund our companies ambitiously as they continue
to scale. We remain focused on maintaining our disciplined approach
as we seek to maximise risk-adjusted returns for our
shareholders."
Post period end
Company updates
In July Freeline provided updated data from the first cohort of
two patients in the ongoing B-AMAZE FLT180a Phase 1/2 trial in
Haemophilia B, demonstrating that over the 12 months since infusion
both patients' liver enzymes remained within the normal range at
all time points and the patients' transgene expression was stable,
with Factor IX levels of 40.5+/-4.5% at week 52. Freeline continues
to enrol patients with the goal of optimising the dose to achieve
Factor IX expression in the normal range. In addition, the business
expanded its pipeline with a new programme, FLT210, to target
Haemophilia A.
In a quarterly report on 8 August 2019, Autolus provided an
update on its pipeline, confirming that it plans to initiate a
Phase 2/registration trial of AUTO1 in adult ALL in the fourth
quarter of calendar year 2019. The business intends to make a
decision on Phase 2 initiation for AUTO3 in Diffuse Large B-cell
lymphoma (DLBCL) in mid-2020, following a lag in patient
recruitment due to a delay in regulatory licensure at its
manufacturing site. Autolus announced positive initial data in this
programme in December 2018 and intends to provide an update at the
American Society of Haematology conference in December 2019.
In pediatric ALL (pALL), Autolus reported that, while its AUTO3
product has demonstrated strong clinical impact, early data
suggests that its AUTO1 product has shown greater durability in
this indication. As a result, Autolus has taken the decision to
focus on its AUTO1 product for pALL, where data currently indicates
a differentiated combination of efficacy, safety and persistence.
The development programme for AUTO1 in pALL will include a next
generation product which is dual targeting and incorporates the
CD19 CAR of AUTO1 and a novel CD22 CAR.
Capital pool
The sale of Blue Earth completed on 1 August, generating
GBP336.9 million in proceeds, further enhancing Syncona's ability
to build and fund its portfolio companies to succeed over the long
term.
Syncona will continue to fund its companies ambitiously as they
scale and sees a strong pipeline of exciting new opportunities,
subject to its disciplined approach to the allocation of capital
across the portfolio.
Valuation movements in the quarter:
Company 31 Mar Net invest- Valuat- 30 Jun % NAV Valuat- Fully Focus area
2019 ment ion change 2019 ion basis diluted
Value in period (GBPm) value owner-
(GBPm) (GBPm) (GBPm) ship
stake
(%)
Life science portfolio companies
--------- ----------------
Established
Sale Advanced
Blue Earth 267.5 - 69.4 336.9 24.9 price 89 diagnostics
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Maturing
Nightstar 255.8 (255.8) - - - - - Gene therapy
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Autolus 328.2 18.3 (161.4) 185.1 13.7 Quoted 30 Cell therapy
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Freeline 93.5 25.0 - 118.5 8.8 Cost 80 Gene therapy
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Gyroscope 28.9 5.1 - 34.0 2.5 Cost 80 Gene therapy
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Developing
Achilles 16.2 9.4 - 25.6 1.9 Cost 69 Cell therapy
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
SwanBio 5.3 3.5 0.2 9.0 0.7 Cost 72 Gene therapy
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
OMASS 3.5 - - 3.5 0.3 Cost 46 Therapeutics
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Anaveon 3.7 - 0.2 3.9 0.3 Cost 47 Immuno-oncology
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Quell 8.3 - - 8.3 0.6 Cost 69 Cell Therapy
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Life Science investments
CRT Pioneer Adj.
Fund 34.3 2.8 - 37.1 2.7 Third-party N/A
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Adj.
CEGX 3.9 - - 3.9 0.3 PRI 9
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Adaptimmune 4.9 - (0.2) 4.7 0.3 Quoted 0
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
Syncona
Collaborations 1.4 - - 1.4 0.1 Cost 100
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
TOTAL 1,055.4 (191.7) (91.8) 771.9 57.1
-------- ------------ ------------ -------- ------ ------------- --------- ----------------
[S]
Enquiries
Syncona Ltd
Annabel Clay / Siobhan Weaver
Tel: +44 (0) 20 3981 7940
FTI Consulting
Brett Pollard / Ben Atwell / Natalie Garland-Collins
Tel: +44 (0) 20 3727 1000
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.
Copies of this press release, a company results presentation,
and other corporate information can be found on the company website
at: www.synconaltd.com
Forward-looking statements - this announcement contains certain
forward-looking statements with respect to the portfolio of
investments of Syncona Limited. These statements and forecasts
involve risk and uncertainty because they relate to events and
depend upon circumstances that may or may not occur in the future.
There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied
by these forward-looking statements. In particular, many companies
in the Syncona Limited portfolio are conducting scientific research
and clinical trials where the outcome is inherently uncertain and
there is significant risk of ne gative results or adverse events
arising. In addition, many companies in the Syncona Limited
portfolio have yet to commercialise a product and their ability to
do so may be affected by operational, commercial and other
risks.
[1] Including prior distributions in the 2019 financial year
[2] As at 30 June 2019; does not include proceeds of Blue Earth
sale
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Authority to act as a Primary Information Provider in the United
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END
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