TIDMSYNC
RNS Number : 1295U
Syncona Limited
21 November 2019
21 November 2019
Syncona Limited
Interim Results for the six months ended 30 September 2019
Pivotal period validating the Syncona model; strong momentum
across high quality portfolio
Syncona Ltd, ("Syncona"), a leading healthcare company focused
on founding, building and funding a portfolio of global leaders in
life science, today announces its Interim Results for the period
ended 30 September 2019.
Martin Murphy, CEO of Syncona Investment Management Limited,
said:
"We have made good progress across the portfolio and
demonstrated a strong track record of success in the first half of
2019. The sales of Blue Earth and Nightstar, two companies we
founded, generated strong risk-adjusted returns, strengthened our
capital base and enabled us to invest significantly into our
exciting portfolio of companies as they scale. We continue to see a
strong pipeline of opportunities across a broad range of
therapeutic areas to found new companies and take products to
market, as we seek to build a sustainable, diversified portfolio of
15-20 companies in innovative areas of healthcare."
Financial performance
-- Net assets at 30 September 2019 of GBP1,336.8 million (31
March 2019: GBP1,455.1 million); 198.9p per share[1], a NAV total
return[2] of (7.2) per cent
-- Life science portfolio, valued at GBP481.3 million, a (11.8)
per cent return[3] over the six months
- Uplifts from the sale of Blue Earth Diagnostics (Blue Earth)
and a Series B financing in Achilles Therapeutics (Achilles)
- Outweighed by a 61 per cent decline in Autolus' (NASDAQ: AUTL)
share price; we continue to believe in the company's strong
fundamentals
Proven value creation through differentiated model
-- Blue Earth and Nightstar sales generated an aggregate of GBP592.6 million of proceeds
- Sale of Blue Earth to Bracco Imaging for $476.3 million,
represented a 10x return on invested capital[4] and an IRR of 87
per cent[5]
- Sale of Nightstar to Biogen for $877.0 million represented a
4.5x return on invested capital[6] and an IRR of 72 per cent[7]
Strengthened capital base to fund growing life science
portfolio
-- Capital base increased by GBP455.8 million to GBP855.5 million[8]
-- GBP127.2 million investment into our life science companies
in line with strategy, including:
- Investment of $24.0 million in a $109.0 million follow-on
financing in Autolus
- Committed GBP48.0 million to Gyroscope Therapeutics in a
GBP50.4 million Series B financing
- Achilles raised GBP100.0 million in an oversubscribed Series
B; Syncona was the largest investor in the round with GBP35.1
million commitment
-- Capital deployment for the full year to increase to
GBP200-GBP250 million; subject to timings of financings and
disciplined approach to capital allocation
Strong clinical progress
-- Ongoing progress in the clinical pipeline with seven live clinical trials, including:
- Encouraging initial data from Autolus (NASDAQ: AUTL) in AUTO1
adult ALL
- Freeline commenced second clinical programme in Fabry's
Disease
- Dose optimisation progressing in Freeline's B-AMAZE Phase 1/ 2
trial in Haemophilia B
- Dose escalation ongoing in Gyroscope Phase 1/2 trial in dry
AMD
Recent events post period end:
-- Committed GBP29.5 million to new portfolio company, Azeria
Therapeutics (Azeria), a company developing and commercialising
innovative cancer therapeutics
-- Achilles commenced patient enrolment in first programme in
Non-Small Cell Lung Cancer (NSCLC)
-- Autolus announced that it will present further data from its
pipeline of programmes at the American Society of Hematology (ASH)
conference including: AUTO1, AUTO2 and AUTO3
Outlook - long-term opportunity to create significant value
We see a rich pipeline of opportunities around which to found
new companies with the ambition of taking products to market,
including across areas such as gene therapy, cell therapy, small
molecules and biologics. In our existing portfolio, we provide
ambitious, long-term funding to our companies, which are scaling
rapidly and progressing through the development cycle enabling us
to retain significant ownership positions of strategic influence.
In line with this and subject to the timing of financings, we
expect our capital deployment for the full year to increase to
GBP200-GBP250 million (prior FY2020 guidance: GBP100-200
million).
In the short term, data generated from our clinical pipeline
will be a core driver of value, and we expect both Freeline's
B-AMAZE trial in Haemophilia B to publish data in this financial
year and Autolus to take a decision on whether to initiate a Phase
2 trial in AUTO3 DLBCL in mid CY2020.
Long-term, we believe there is an opportunity to create
significant value in life science through our differentiated model.
We are half way to our target of building an evolving, diversified
portfolio of 15-20 companies. Over the next 10 years, we expect to
deliver 3-5 companies from this portfolio which reach the point of
product approval and where Syncona remains a significant
shareholder. We believe this approach will maximise risk-adjusted
returns for shareholders.
Chris Hollowood, CIO, of Syncona Investment Management Limited,
said:
"Following the addition of new Syncona company, Azeria, we have
a high-quality portfolio of nine companies. Three are at clinical
stage, where the data generated will be a core driver of value.
Whilst clinical and regulatory processes involve significant risk,
we have a high level of conviction in our companies, and there is
strong momentum in the portfolio.
We have a highly expert team, strategic capital base and
differentiated model to found, build and fund businesses through
the translation of globally leading life science research as we
seek to deliver transformational treatments to patients and strong
risk-adjusted returns for shareholders."
[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 a portfolio of global leaders in
life science. Our vision is to build a sustainable, diverse
portfolio of 15 - 20 companies focused on delivering
transformational treatments to patients in truly innovative areas
of healthcare, through which we are seeking to deliver strong
risk-adjusted 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 strategic capital base which
provides us with control and flexibility over the management of our
portfolio. 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 negative 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.
Chairman's foreword
Syncona's differentiated approach has been validated in the
first half of this year. There is significant momentum in our
portfolio companies which are scaling rapidly. Our ability to
deliver strong risk-adjusted returns was demonstrated with the
realisation of two Syncona founded companies, which also
significantly strengthened our capital base.
Performance in the six months
Uplifts from the sale of Blue Earth and the recent financing of
Achilles were outweighed by the 61 per cent decline in Autolus'
share price, and net assets decreased to GBP1,336.8 million or
198.9p per share[9], a (7.2) per cent total return[10] in the six
months (31 March 2019: net assets of GBP1,455.1 million, 216.8 p
per share).
At the end of the period, we have a life science portfolio
valued at GBP481.3 million and a capital base supporting the growth
of this portfolio of GBP855.5 million. A strong balance sheet and
certainty of funding is key to delivering our strategy and our
capital base provides us with the flexibility to back our portfolio
companies as they scale, whilst allowing us to take a long-term
approach and maintain significant ownership positions.
Board transition
I am delighted that Melanie Gee will take over as Chair when I
retire from the Board on 31 December 2019. Melanie brings a wealth
of expertise from 30 years in investment banking and is an
experienced FTSE board member. She will be an excellent Chair as
the Company moves into its next stage of growth. I am very grateful
to my colleagues for their invaluable contribution and support over
my past seven years on the Board.
Long-term opportunity
In 2016, we acquired a portfolio of life science assets together
with a leading management team from the Wellcome Trust. We set out
our vision to found and build globally competitive life science
companies with the ambition to take products to market, deliver
transformational treatments to patients and generate strong
risk-adjusted returns for our shareholders. I am delighted that we
have seen rapid and significant progress over the last three years
and are well on the way towards achieving our vision.
Syncona has a unique model underpinned by a strategic pool of
capital and an expert team that continues to expand our
high-quality portfolio of life science companies which we expect to
continue to drive significant returns for shareholders. We have a
strong pipeline of exciting opportunities, leveraging the rich
landscape of science and innovation in the UK and beyond. I am
proud of what has been achieved so far and even more excited for
the future. I believe there is a huge opportunity for Syncona to
create significant value for shareholders over the long-term.
Jeremy Tigue
Chairman
20 November 2019
CEO Statement
Syncona has made strong progress as we continue to deliver on
our strategy of creating a portfolio of life science companies
based on founding, building and funding global leaders in
healthcare.
A growing track record of success:
Syncona has an expert team and a permanent capital base to
capture the out-return from the commercialisation of an exceptional
research base in life science in Europe, particularly the UK. This
platform is combined with a differentiated, long-term, product
focused strategy to maximise risk-adjusted returns for
shareholders. We believe that significant value creation in life
science comes by taking products into late development and to
approval - targeting the steepest part of the value creation curve.
To deliver this, we select science and innovation that will have a
transformational impact for patients, and which can be credibly
developed by innovative biotech companies all the way to product
approval. We found our companies with this ambition, build them for
global success and fund them ambitiously over the long-term,
maintaining significant ownership positions and thereby maximising
our opportunity to capture significant value for shareholders. It
is important that our companies know Syncona can fund them for the
long-term, as this gives us the ability to build globally
competitive businesses and attract the best management teams.
Having identified and financed Azeria post period end, we have a
portfolio of nine companies, which is diversified across a range of
therapeutic areas and are at various stages of the development
cycle. The sale of two of our most developed businesses, Blue Earth
and Nightstar, which completed during the half year demonstrated
our ability to deliver strong risk-adjusted returns for
shareholders. In the case of Blue Earth, we sold the business to
Bracco Imaging for $476.3 million in June, generating proceeds of
GBP336.8 million and a return of 10x original invested capital[11].
Syncona founded the business in 2014 and worked in close
partnership with the Blue Earth management team to successfully
develop, launch and commercialise an impactful product for prostate
cancer imaging, funding the business on a sole-basis. We also
completed the sale of Nightstar, a company we founded in 2014.
Nightstar also benefited from our long-term, operational and
hands-on approach and we accepted an offer of $877.0 million for
the business from Biogen earlier this year, crystallising proceeds
of GBP255.8 million (representing a return of 4.5x original
invested capital[12]).
The decisions to sell Blue Earth and Nightstar were driven by
our view of the balance of risk and reward facing these companies
and represented attractive opportunities to deliver out sized
returns for our shareholders. Our model enables us to redeploy the
proceeds, into our portfolio companies as they scale, and also
pursue exciting new opportunities as we look to build a sustainable
portfolio.
Strong progress across our portfolio:
We have seen significant financial, clinical and operational
progress inour portfolio companies during the first half of the
year. We have completed significant financings in three of our
portfolio companies, commenced a new clinical trial in Fabry
disease, have seen encouraging data reported in AUTO1 adult ALL and
now have seven active clinical trials in our promising clinical
pipeline. While the Autolus share price has declined during the
period, we are focused on long-term value creation and believe the
fundamentals of the company are strong.
Post-period end, we have committed GBP29.5 million in a GBP32.0
million Series B financing to a new Syncona company, Azeria
Therapeutics, which is focused on developing small molecules
designed to treat hormone resistant breast cancer. The company was
founded in 2017 by a world-leading academic, Dr Jason Carroll, who
is an expert in the study of pioneering factors in cancer. His
scientific insights have identified a new target and mechanism of
action in an area of high unmet need, namely the approximately 30
per cent of oestrogen receptor positive breast cancer patients, who
ultimately progress to late stage endocrine resistant
disease[13].
Azeria received GBP5.5 million of Series A funding from the CRT
Pioneer Fund in which Syncona is the largest investor. This gave us
unique insight and access to the investment, through which we saw
an opportunity to build a world-leading oncology company focused on
developing its lead programme through to commercialisation and
building a pipeline of further programmes. Syncona Partners, Magda
Jonikas and Michael Kyriakides are now developing the business plan
and clinical pipeline with the Azeria team. Through our investment
in the CRT Pioneer Fund, and directly through the Series B
financing, Syncona has a 75 per cent ownership holding in
Azeria[14].
A rapidly scaling portfolio
Successful life science companies scale rapidly. They require
increasing amounts of capital to achieve their ambitions as they
progress through the development cycle, secure globally leading
management teams and build industrial scale.
Our portfolio companies are progressing well meaning the scale
of the capital which they require is also increasing. We have three
companies in the clinic progressing seven programmes and have
deployed GBP127.2 million in the period. Our strategic capital
base, which has been significantly strengthened by the sale of Blue
Earth and Nightstar, provides us with the flexibility to back our
companies over the long-term, while retaining significant ownership
stakes.
Managing risk and reward
As our companies scale, we continue to take a disciplined
approach to capital allocation to optimise returns for our
shareholders. For any given company, we continually assess the
opportunity, the fundamental risk, the capital required to scale
ambitiously and the strength of our own balance sheet, to determine
the optimum financing approach or the right time to sell a
company.
We typically remain the sole investor throughout initial rounds
of investments. However, there will also be circumstances where the
right thing for the company, and Syncona, will be to bring in
likeminded investors to support the portfolio company, while
maintaining a significant ownership stake, for example where the
capital required is at a level beyond which we could prudently
invest from our balance sheet.
Equally, we will sell companies prior to product approval if we
have the opportunity to capture an out-sized risk-adjusted return
for our shareholders, applying our disciplined assessment of the
risk and future opportunity. We believe the sale of Nightstar is a
good example of this strategy. Importantly, our capital base
protects against the risk of being a forced seller and allows us to
make informed decisions around whether to invest alone or divest
our companies to realise value.
Alongside financial risk, there is also scientific, clinical,
execution and commercial risk in building life science companies.
The Syncona team's strong track record and expertise means that we
are highly qualified to understand and manage these risks both at
an early stage and through the development cycle, but it is the
nature of life science businesses that some of our companies won't
succeed. In these circumstances, we aim to take action quickly to
recover as much value as possible and limit further costs, so that
we can reallocate our time and investment capacity to other
opportunities.
At the portfolio level, we also seek to manage risk through the
creation of a portfolio of 15-20 companies which we would expect to
sit across a range of therapeutic areas and development stages. We
believe this level of diversification is appropriate to meet our
primary goal of delivering 3-5 companies to the point of
approval.
Significant opportunity over the long-term:
We continue to see a rich set of opportunities in the UK, where
there is a globally differentiated research base. These include
high quality opportunities in gene and cell therapy, areas where we
already have deep domain expertise and strong platform
capabilities, and attractive pipeline opportunities more broadly
across a range of therapeutic areas and modalities, including small
molecules and biologics. Our focus is on finding opportunities
where we can deliver our strategy to build global leaders aiming to
take their products to market and capture shareholder returns by
targeting the steepest part of the value creation curve. Our
proactive approach to identifying innovative areas of science and
then partnering with globally leading academics to found new
companies enables us to access the very best opportunities and
bring the Syncona team's differentiated expertise to bear from the
outset.
We enter the second half with strong momentum in the portfolio.
We remain focused on leveraging our expertise and differentiated
model to build globally competitive businesses. Over the next 10
years, we are seeking to build our high conviction portfolio to
15-20 companies, adding new companies at a rate of 2-3 a year. Our
goal is to deliver 3-5 companies, in which we retain a significant
ownership position, to the point of product approval. We believe
this will enable us to capture the significant value creation
opportunity available from commercialising life science innovation
and ultimately achieve our ambition to deliver transformational
treatments to patients and strong risk-adjusted returns for
shareholders.
Martin Murphy, CEO Syncona Investment Management Limited
20 November 2019
Life science portfolio review
There is good progress in the portfolio, which was valued at
GBP481.3 million at 30 September 2019, with eight companies at the
end of the period: three clinical stage companies and five
pre-clinical companies focused on establishing operations and
setting and implementing their strategic vision.
Clinical companies:
Autolus (11.0% of NAV, 29% shareholding):
-- Encouraging data in AUTO1 adult acute lymphoblastic leukaemia
(ALL) programme; the company completed a follow-on financing of
$109.0 million where Syncona invested $24.0 million
-- AUTO1 adult ALL expected to move to a pivotal programme in H1
2020; further data from AUTO1, AUTO2 and AUTO3 to be presented at
ASH in December 2019
Autolus is our biopharmaceutical company developing
next-generation programmed T cell therapies for the treatment of
cancer. During the period, the company reported initial positive
data from the AUTO1 adult ALL Phase 1/2 trial and confirmed that it
plans to initiate a pivotal programme in the first half of calendar
year 2020. It also reported that it will move to focus on a next
generation product targeting multiple myeloma as its AUTO2
programme is not differentiated from competitor programmes. Autolus
also intends to make a decision on whether to initiate a Phase 2
trial for AUTO3 in Diffuse Large B-cell lymphoma (DLBCL) in
mid-2020, whilst in paediatric ALL (pALL), it reported that it will
focus on its AUTO1 and AUTO NG products, where data currently
indicates a differentiated combination of efficacy, safety and
persistence. AUTO1NG is expected to commence a Phase 1 study in the
first half of 2020.
Autolus completed a $109.0 million follow-on financing in April
2019, in which Syncona invested $24.0 million. The business has
also been focused on expanding operations at its clinical
manufacturing site at the Catapult Cell and Gene facility in
Stevenage, to enable the company to meet its expected demand for
its clinical trials.
Post period end, the business published abstracts for the ASH
conference in November 2019, where it reported further early
encouraging data from its AUTO3 programme in DLBCL from the low
dose cohorts, with further data from patients in a higher dose
cohort expected to be presented at ASH. The business also reported
that it will publish data from its pipeline of programmes,
including AUTO1 (pALL and adult ALL), AUTO2 and AUTO3 (pALL and
DLBCL) at the conference.
Despite the recent share price fall, our view is that Autolus is
a strong company with positive fundamentals as it seeks to apply a
broad range of technologies to engineer a pipeline of precisely
targeted T cell therapies designed to better recognise and attack
cancer cells. The business is expecting to initiate a
registrational trial in its lead programme in AUTO1 in adult ALL in
H1 CY2020, where there is currently no CAR-T therapy approved.
Compared to the current standard of care in relapsed refractory
Adult ALL, Blincyto, a redirected T cell engager, AUTO1 has the
potential to have a highly differentiated efficacy profile with a
comparable safety profile. There is an addressable patient
population of 3,000 patients[15] and 8,400 new cases of adult ALL
diagnosed yearly worldwide and therefore this represents a
significant commercial opportunity for the business[16].
Freeline (8.9% of NAV, 80% shareholding):
-- Two clinical programmes; dose optimisation continues in lead
programme in Haemophilia B programme and first patient dosed in
second programme in Fabry's Disease
-- Further data from Haemophilia B programme is expected in this
financial year and early data from the Fabry programme is expected
to be reported in FY2021
Freeline, our gene therapy company focused on liver expression
for a range of chronic systemic diseases, is progressing its lead
programme in Haemophilia B through clinical development in which it
is seeking to deliver FIX activity in patients in the normal range.
The normal range of FIX activity in the general population's blood
is between 50% and 150%. The business continues to enrol patients
as part of its dose-ranging trial and is currently completing dose
optimisation with the goal of delivering FIX activity consistently
in the normal range for all patients. The business expects to
report further data in the trial in this financial year.
Freeline also dosed its first patient in a Phase 1/2 in its
second programme in Fabry Disease, which is estimated affects one
in every 40,000 people[17]. It is the first AAV gene therapy
clinical study in Fabry disease globally. Early data from the Fabry
programme is expected to be released in FY2021.
Freeline is also progressing pre-clinical programmes targeting
Gaucher disease and Haemophilia A, which are part of a broad
pipeline of systemic disorders, where achieving high expression of
FIX activity is crucial to achieving a functional cure for
patients.
Importantly, the business has also been focused on developing
its world leading manufacturing platform, so that it can deliver
high-quality, consistent product at commercial scale, supporting
its ambition to ultimately deliver product to patients.
Gyroscope (4.2% of NAV, 80% shareholding):
-- Syncona GBP48.0 million commitment in a GBP50.4 million Series B financing
-- Continued dosing in first programme in dry age-related
macular degeneration (AMD); expects to complete enrolment in the
FOCUS trial in FY2020, with initial data reported by FY2022
Gyroscope Therapeutics is developing gene therapy beyond rare
disease and using it to treat a leading cause of blindness, dry
age-related macular degeneration (dry-AMD). Dry-AMD is the leading
cause of permanent vision impairment for people aged 65 and older
and there are no approved treatments.
During the period Gyroscope closed a GBP50.4 million Series B
financing, to continue the clinical development of both the
company's lead investigational gene therapy (GT005) and the
second-generation Orbit Subretinal Delivery System.
In line with our strategy to fund our companies ambitiously over
the long-term, Syncona committed GBP48 million in the Series B
financing, bringing its total commitment to Gyroscope since its
inception to GBP82 million.
Research suggests that when a part of the immune system, the
complement system, is overactive it leads to inflammation that
damages healthy eye tissues. Gyroscope's lead investigational gene
therapy, GT005, is designed to restore balance to the complement
system to hopefully slow, or possibly stop, the progression of
dry-AMD.
The company is currently enrolling in a Phase 1/2
dose-escalating clinical trial, known as the FOCUS study, and to
date there have not been any safety concerns.
Gyroscope is also conducting a natural history study, known as
the SCOPE study, that will enroll and genotype patients in Europe,
Australia, and the United States. The SCOPE study will provide
valuable genetic, biomarker and disease progression insight that
will inform the company's future clinical development plans.
Pre-clinical companies (8.4% of NAV):
Achilles (5.4% of NAV, 44% shareholding):
-- GBP100.0 million Series B financing cornerstoned by a GBP35.1
million commitment from Syncona
-- Enrolled first patients in first programme in Non-Small Cell
Lung Cancer (NSCLC); initial data in first two programmes in
non-small cell lung cancer and melanoma expected by FY2022
Achilles, our cell therapy company which is focused on
immunotherapy to treat solid tumours (initially lung cancer and
melanoma), continues to make progress.
Proceeds from the recent financing are expected to enable the
business to deliver two human proof-of-concept studies in Achilles'
first programmes in NSCLC and melanoma. The business has enrolled
the first patients in its NSCLC programme during the period. In
addition, the financing will enable Achilles to continue building
out its manufacturing capabilities as well as broaden its growing
solid tumour pre-clinical product pipeline.
SwanBio (1.4% of NAV; 70% shareholding)
SwanBio, our gene therapy company focused on neurological
disorders, has made good progress over the period, building out its
leadership team with a number of appointments in the period.
SwanBio's lead programme is focused on one of the most common
monogenic neurological disorders, which currently has no available
therapies and Syncona Partner Alex Hamilton is working with the
company to develop its pipeline of indications.
OMASS (0.7% of NAV; 46% shareholding)
OMASS Therapeutics, our biopharmaceutical company using
structural mass spectrometry to discover novel medicines, continued
to leverage its unique technology platform and it is now fully
deployed as a discovery engine for small molecule drug
therapeutics. Syncona Partners Ed Hodgkin and Magda Jonikas have
worked with the team and hired Ros Deegan, a highly experienced
senior executive in drug discovery, as Chief Executive Officer. The
business is now focused on building a pipeline of therapeutic
agents.
Quell (0.6% of NAV; 69% shareholding)
Quell Therapeutics has been established with the aim of
developing engineered T regulatory (Treg) cell therapies to treat a
range of conditions such as solid organ transplant rejection,
autoimmune and inflammatory diseases. The business appointed Iain
McGill as Chief Executive Officer during the period. Iain is a
leading pharmaceutical executive who has spent the majority of his
25 years in the industry in the area of solid organ and cell
transplantation. Syncona Partner Freddie Dear is working in the
company as Director of Operations. The team has expanded to 25
people and the company has been focused on building out R&D,
manufacturing operations and capabilities. The business is
targeting a first indication in liver transplant and candidate
nomination is anticipated in FY2021.
Anaveon (0.3% of NAV; 47% shareholding)
Anaveon is developing a selective Interleukin 2 ("IL-2")
Receptor Agonist, a type of protein that could therapeutically
enhance a patient's immune system to respond to tumours. The
business is expanding its operations and has recently moved into an
independent laboratory space at Technologie Park Basel. The
business has been focused on expanding the leadership team and is
progressing towards clinical trials with candidate nomination in
FY2021.
Life science investments (3.5% NAV):
Beyond Syncona's portfolio companies, where we typically have a
significant ownership stake and are a partner with operational and
strategic influence, we also have a small number of life science
investments which represent good opportunities to generate returns
for shareholders or provide promising options for the future in
areas where Syncona has deep domain knowledge.
The largest holding is the CRT Pioneer Fund, which is focused on
early stage investments in highly innovative oncology programmes
which were primarily sourced from its proprietary pipeline
agreement with Cancer Research UK. Syncona is the largest investor
in the fund and has contributed a net GBP4.8 million to the fund
during the period, with a further GBP10.1 million of uncalled
commitments remaining that we expect to be called within the next
24 months. Its investment period closed in March 2018 and the
manager is now focused on supporting the existing 11 investments in
the portfolio. This portfolio has a number of exciting investments,
notably Azeria, to which we have committed GBP29.5 million post
period end.
Active clinical pipeline at 30 September 2019
Programme / Indication Status and next steps
Autolus - cell therapy / oncology
AUTO1 / Adult ALL Phase 1/2 trial progressing; start pivotal
programme in this financial year
-----------------------------------------------------
AUTO1 / Paediatric Phase 1/2 trials progressing, (assessing safety,
ALL dose and efficacy) data anticipated this financial
year
-----------------------------------------------------
AUTO3 - Adult DLBCL
-----------------------------------------------------
AUTO4 - T cell Lymphoma Phase 1/2 trial progressing; expect to present
initial AUTO4 Phase 1 data H2 CY2020
-----------------------------------------------------
Freeline
B-AMAZE - Haemophilia Phase 1/2 trial progressing (assessing safety,
B dose and efficacy, dose escalation and optimisation
phase), further data anticipated this financial
year
-----------------------------------------------------
Fabry's Disease Phase 1/2 trial progressing (assessing safety,
dose and efficacy, dose escalation and optimisation
phase), early data expected in FY2021
-----------------------------------------------------
Gyroscope
-----------------------------------------------------
FOCUS - Dry Age-Related Phase 1/2 trial progressing (assessing safety,
Macular Degeneration dose response and efficacy of two doses of
GT005). Anticipate completing first dose escalation
this financial year
-----------------------------------------------------
Pre-clinical programmes anticipated to commence trials in
FY2020
Programme / Indication Status and next steps
Achilles
---------------------------------------------
Non-small cell lung Enrolling patients for its Phase 1/2 trial;
cancer expects to initiate Phase 1/2 trial in this
financial year and initial data expected by
FY2022
---------------------------------------------
Melanoma Enrolling patients for Phase 1/2 trial and
expects to initiate in this financial year
---------------------------------------------
Chris Hollowood, Chief Investment Officer, Syncona Investment
Management Limited
20 November 2019
Finance review
Strong commercial and financial momentum across our
portfolio
We continue to ambitiously fund and build our portfolio
companies. Gyroscope and Achilles, completed private financing
rounds in which Syncona was either the sole or largest
institutional investor, committing GBP83.1 million to fund these
companies as they move into the clinic. We invested GBP18.3 million
in the secondary placing of Autolus, as it progresses its pipeline
of trials through the clinic and remain its largest shareholder,
with a 29 per cent holding. We also materially strengthened our
capital base, which underpins our strategy and model, completing
the sales of Blue Earth to Bracco Imaging and of Nightstar to
Biogen.
NAV performance impacted by fall in Autolus share price
NAV performance in the six months was impacted by the 61 per
cent fall in the share price of Autolus, which outweighed the
GBP92.7 million positive impact of the sale of Blue Earth and
uplift in the value of Achilles. This resulted in a negative return
from the life science portfolio of 11.8 per cent[18] or a loss of
GBP108.7 million and we ended the period with net assets of
GBP1,336.8 million, or 198.9p per share[19], a 7.2 per cent
negative return over the six months[20].
From a valuation perspective, 60.9 per cent of the life science
portfolio[21] is valued on the basis of capital invested (cost) or
at the value of a recent third-party financing, in the case of
financing rounds that have been syndicated, calibrated for events
that have taken place since the initial transaction that indicate a
change in the investments' fair value. Companies which are publicly
listed, are valued at their period end share price. Volatility in
the value of early stage companies is to be expected, and in the
case of Autolus, which is listed on NASDAQ, we continue to believe
in company's strong fundamentals.
Capital deployment to increase to GBP200 - 250 million for this
financial year
We continue to maintain a rigorous and disciplined approach to
the allocation of capital to each portfolio company to maximise
risk adjusted returns for shareholders. In total, we deployed
GBP127.2 million of capital in the six months, funding milestone
payments in our portfolio companies and the initial tranche of our
Series B commitments to Gyroscope and Achilles. While the absolute
level of deployment is dependent on the timing of the financing
requirements, our current expectation is that capital deployment
will increase to between GBP200 - GBP250 million for this financial
year.
Looking forward, our portfolio companies are scaling rapidly and
subject to the portfolio and investment pipeline progressing, we
would expect our capital deployment to be in the range of GBP150 -
GBP250 million per year.
Increase in uncalled commitments reflect new financing
rounds
Uncalled commitments were GBP129.4 million at the end of the
period. Of the GBP129.4 million, GBP114.3 million relate to
milestone payments, which are subject to the satisfaction of key
commercial and clinical milestones, mitigating financial risk. The
remaining GBP15.1 million of commitments are split GBP10.1 million
to the CRT Pioneer Fund and GBP5.0 million to two legacy fixed term
funds.
Uncalled Commitment
Life Science Portfolio:
---------------------------------
Milestone payments to portfolio
companies 114.3
---------------------------------
CRT Pioneer Fund 10.1
---------------------------------
Fund Portfolio 5.0
---------------------------------
TOTAL 129.4
--------------------
Significant strengthening of the capital base
The completion of the sales of Blue Earth and Nightstar
generated proceeds of GBP592.6 million and significantly
strengthened our capital base, which stood at GBP855.5 million[22]
at the half year. The strength of our balance sheet is a strategic
differentiator and a competitive advantage. It allows the team to
take long term funding decisions, while retaining strategic
ownership positions as our companies scale.
Syncona's developing life science companies are capital
intensive, and the strength of our capital base protects against
the risk of being a forced seller and gives us the flexibility to
fund our companies over the long term, on a sole or partnered
basis. Certainty of funding is key and for our model to be
successful we believe our capital base needs to be sufficient to
provide funding for our life science companies and new
opportunities for a minimum of two to three years and hold at least
one year's deployment in cash and cash equivalents.
Liquidity profile GBPm
Net cash 22.2
------
< 1 month 356.6
------
1-3 months 395.4
------
3-12 months 7.6
------
>12 months 73.7
------
Total 855.5
------
The transition of the capital pool, away from fund investments
is now largely complete. The majority of our liquidity is held in
cash, cash equivalents, and fixed income products with a focus on
liquidity and capital preservation.
Expenses
The Company's ongoing charges ratio[23] reduced to 0.55 per cent
(30 September 2018: 0.82 per cent), a significant part of which
reflects effective cost management. Allowing for the costs
associated with the Incentive Plan, ongoing charges were 0.77 per
cent of NAV (30 September 2018: 1.29 per cent).
Incentive Plan
The incentive plan aligns the investment team with shareholders
and vests on a straight-line basis over a four-year period with
awards settled in cash and Syncona shares. The total liability for
the cash settlement element of the incentive plan was GBP14.2
million at 30 September 2019 (30 September 2018: GBP10.8 million),
with the GBP6.1 million payment made to participants in the period
partially offset by an increase in eligible MES, as the vesting
schedule matures. In addition, 1,583,138 (30 September 2018:20,836)
shares were issued to employees in connection with MES realisations
in the six months. At 30 September 2019, the number of Syncona
shares that could potentially be issued in connection with the MES
stood at 8,525,594, taking the total number of fully-diluted
shares, for the purposes of calculating NAV per share, to
672,191,131.
Foreign exchange
At the half year, we continued to hold the Company's foreign
exchange exposure in the life science portfolio unhedged, US dollar
denominated investments total GBP149.3 million and Swiss Franc
denominated investments total GBP3.9 million. We hedge EUR52.0
million of our euro exposure in legacy fixed term fund investments
and the unrealised gain on the associated forward contracts was
GBP1.8 million at 30 September 2019.
Recent events
Since the period end, Syncona has made a GBP29.5 million
commitment to new company, Azeria, of which GBP6.5 million has been
invested.
John Bradshaw, Chief Financial Officer, Syncona Investment
Management Limited
20 November 2019
Supplementary Information
Life science valuation table:
Company 31 March Net Valuation 30 %NAV Fair value Fully Focus Area
2019 Investment Change September basis[24] Diluted
Value in (GBPm) 2019 Ownership
(GBPm) Period Value %
(GBPm) (GBPm)
- fair
value
Life science
portfolio
companies
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Product
approval
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Advanced
Blue Earth 267.5 -336.8 69.3 0.0 0.0% Sale price 0% diagnostics
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Clinical
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Nightstar 255.8 -255.8 0.0 0.0% Sale price 0% Gene therapy
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Autolus 328.2 18.3 -199.1 147.4 11.0% Quoted 29% Cell therapy
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Freeline 93.5 25.0 118.5 8.9% Cost 80% Gene therapy
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Gyroscope 28.9 27.1 56.0 4.2% Cost 80% Gene therapy
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Pre-clinical
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Recent
financing
(within
Achilles 16.2 32.8 23.4 72.4 5.4% 0-6 months) 44% Cell therapy
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
SwanBio 5.3 12.9 0.5 18.7 1.4% Cost 70% Gene therapy
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Omass 3.5 6.3 9.8 0.7% Cost 46% Therapeutics
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Anaveon 3.7 0.2 3.9 0.3% Cost 47% Immunoncology
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Quell 8.3 8.3 0.6% Cost 69% Cell therapy
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Life Science
Investments
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
CRT Pioneer Adj Third
Fund 34.3 4.8 39.1 2.9% Party N/A
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Recent
financing
(within
6-12
CEGX 3.9 3.9 0.3% months) 9%
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Adaptimmune 4.9 -3.0 1.9 0.2% Quoted 0%
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Syncona
Collaborations 1.4 1.4 0.1% Cost 100%
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
TOTAL 1,055.4 -465.4 -108.7 481.3 36.0%
--------- ------------ ---------- ------------ ------ ------------ ----------- --------------
Supplementary portfolio company information:
Company Lead programme Opportunity Key Key potential
& investment & disease in and comparators([25]) risks([26])
thesis population differentiation
of lead programme
Autolus AUTO1 ALLCAR19 Unmet medical CAR-T active Differentiated
Applying Phase 1/2 need: only programmes product
a broad in Adult 30-40% of patients in clinical required
range of Acute Lymphoblastic with Adult development Complex
technologies Leukaemia ALL achieve for Adult manufacturing
to build 3,000 patients long term remission ALL include
a pipeline globally([27]) with combination Gilead([31])
of precisely p.a. chemotherapy,
targeted the current
T cell therapies standard of
designed care([28])
to better No CAR-T therapy
recognise approved for
and attack adult ALL for
cancer cells patients
AUTO1 targets
a differentiated
safety profile
(reduce high
grade CRS([29])
) and
improvedpersistence
to address
limitations
of current
T cell
therapies([30])
---------------------- ---------------------- ---------------------- ----------------------
Freeline B-AMAZE: Unmet medical Active clinical Highly competitive
Potential Phase 1/2 need: current programmes environment
to deliver in Haemophilia standard of for Haem Differentiated
constant B care, Enzyme B include: product
high protein 9,500 patients Replacement Spark/Pfizer([33]) required
expression (total) US Therapy (infusions UniQure([34]) Manufacturing
levels across and EU5([32]) of FIX into
a broad the blood),
pipeline requires regular
of systemic administration
diseases; and FIX activity
opportunity does not remain
to deliver stable
curative Opportunity
gene therapies to deliver
a single dose
cure for patients
by achieving
FIX levels
in the 'normal'
range in the
blood of 50-150%
Utilising a
novel, proprietary
capsid and
industrialised
proprietary
manufacturing
platform
---------------------- ---------------------- ---------------------- ----------------------
Gyroscope FOCUS Phase Unmet medical No directly Highly innovative
A novel 1/2 in need: age related competitive concept -
company Dry-Age-Related macular degeneration gene therapy currently
developing Macular Degeneration is one of the approach. unsupported
gene therapy 2 million leading causes Apellis by a significant
beyond rare patients of permanent (clinical)([37]) existing data set
disease (total) with vision impairment ;
by understanding geographic for people Gemini
the immune atrophy (late aged 65 and (pre-clinical)([38])
system and stage, older with Hemera([39])
the role dry-AMD)([35]) no approved (non-gene
genetics treatments([36]) therapy)
play in .
a patient's Research suggests
risk of that when a
developing part of the
late stage immune system,
AMD the complement
system, is
overactive
it leads to
inflammation
that can damage
healthy eye
tissues
Gene therapy
may stimulate
a patient's
cells to produce
the proteins
needed to restore
balance to
the complement
system
Developing
a subretinal
delivery system
to safely,
precisely and
consistently
deliver therapies
into the eye
and help scale
the surgical
procedure for
larger patient
populations.
---------------------- ---------------------- ---------------------- ----------------------
Achilles Phase 1/2: Unmet medical Key competitors Highly innovative
Differentiated Non-small need: lung in neoantigen/ concept in an
cell therapy cell lung cancer, of immunotherapy emerging
approach cancer which NSCLC include: space
targeting 234,000 patients accounts for Iovance([44]) Significant
solid tumours US and UK([40]) approximately Neon manufacturing
utilising p.a. 85%([41]) , Therapeutics([45]) challenge
Tumour Infiltrating with limited Gritstone([46]) Increasing
Lymphocytes treatment options Oncology competition
& clonal and is the
neoantigens leading cause
to develop of cancer
personalised deaths([42])
treatments .
TILs have shown
convincing
efficacy in
solid tumours([43])
Achilles' world
leading
bioinformatics
platform, PELEUS(TM)
is built on
exclusive access
to world largest
study of tumour
evolution in
lung cancer
(TRACERx)
Achilles process
uses the patient's
own genomic
information
to create a
truly personalised
medicine targeting
the clonal
neoantigens
specific to
that patient
---------------------- ---------------------- ---------------------- ----------------------
Company Syncona's Investment Thesis Key comparators Key risks
Swan Unmet medical need: one of Several Manufacturing
Gene therapy the most common monogenic clinical and delivery challenges
focused neurological disorders, with trials for in the CNS (substantial
on neurological no available therapies for gene therapy dose required)
disorders severely debilitating progressive within CNS Clinical endpoints
where there movement disorder field, including in slow progressing
is existing Gene therapy has the potential programmes diseases can be
proof of to be transformational in within Voyager[48] challenging to
concept neurology([47]) Uniqure[49], define
one-off delivery mechanism Amicus[50],
and hundreds of single gene Prevail
disorders Therapeutics[51]
First programme in preclinical and PTC
development for an inherited Therapeutics[52]
neurodegenerative disease
in which the causative gene
is definitively known and
well characterized
------------------------------------------ ---------------------- --------------------------
Quell Unmet medical need: current T Reg field Highly innovative
Engineered standard of care for prevention is nascent concept, limited
cell therapy of solid organ transplant TX Cell/Sangamo[55] clinical data
company rejection is life-long immunosuppression supporting application
addressing which results in an array of CAR-T technology
"immune of serious long-term side in Treg cells
dysregulation" effects (e.g. renal function,
malignancy, infection, cardiovascular
disease) materially impacting
patient quality of life and
long-term survival([53])
Novel cell therapy approach
using T-regulatory cells
with a suppressive action
to downregulate the immune
system to treat conditions
including solid organ transplant
rejection, autoimmune and
inflammatory diseases
Potential pipeline to treat
serious, chronic conditions
mediated by the immune system;
in the autoimmune setting
alone, there are are >70
chronic disorders estimated
to affect over 4% of the
population[54]
Pre-clinical stage: first
programme to address solid
organ transplant
------------------------------------------ ---------------------- --------------------------
Anaveon Unmet medical need: Human Companies Highly competitive
Immuno-oncology Interleukin 2 "IL-2" approved developing Innovative concept
company as a medicine for the treatment products which is currently
developing of metastatic melanoma and in the IL-2 unsupported by
a selective renal cancer, but with a field include: a significant
IL-2 Receptor frequent administration schedule Nektar[58], clinical data
Agonist and significant toxicity([56]) Roche[59], set
Preclinical stage, developing Alkermes[60],
a selective Interleukin 2 Synthorx[61].
("IL-2) Receptor Agonist
with improved administration
and tox burden
Wide potential utility across
multiple oncology indications
in large markets([57])
------------------------------------------ ---------------------- --------------------------
OMASS Opportunity to build a drug N/A Pre-clinical and
Drug Discovery discovery platform employing clinical attrition
platform a differentiated Modified of potential drugs
with differentiated Mass Spectrometry technology
technology with the potential to yield
high quality chemical hits
to discover novel small molecule
drug therapeutics for a variety
of complex targets, including
membrane receptors
------------------------------------------ ---------------------- --------------------------
Syncona life science portfolio returns (30 September 2019)
Company Cost Value Multiple IRR
Maturing
----------- ------------- --------- ----
Autolus GBP94.5m GBP147.4m 1.6 22%
----------- ------------- --------- ----
Freeline GBP118.5m GBP118.5m 1.0 0%
----------- ------------- --------- ----
Gyroscope GBP55.5m GBP56.0m 1.0 0%
----------- ------------- --------- ----
Sub-total
----------- ------------- --------- ----
Developing
----------- ------------- --------- ----
Achilles GBP49.0m GBP72.4m 1.5 61%
----------- ------------- --------- ----
SwanBio GBP17.8m GBP18.7m 1.1 10%
----------- ------------- --------- ----
Omass GBP9.8m GBP9.8m 1.0 0%
----------- ------------- --------- ----
Anaveon GBP3.7m GBP3.9m 1.1 0%
----------- ------------- --------- ----
Quell GBP8.3m GBP8.3m 1.0 0%
----------- ------------- --------- ----
Realised companies
----------- ------------- --------- ----
Nightstar GBP56.4m GBP255.8m 4.5 72%
----------- ------------- --------- ----
Blue Earth GBP35.3m GBP351.0m 9.9 87%
----------- ------------- --------- ----
Investments
----------- ------------- --------- ----
Unrealised investments GBP51.6m GBP46.3m 0.9 -6%
----------- ------------- --------- ----
Realised investments GBP12.4m GBP17.6m 1.4 27%
----------- ------------- --------- ----
Total GBP512.8m GBP1,105.7m 2.2 47%
----------- ------------- --------- ----
Valuation policy for life science investments and clinical trial
disclosure process
Valuation policy for life science investments
The Group's investments in life science companies are, in the
case of quoted companies, valued based on bid prices in an active
market as at the reporting date.
In the case of the Group's investments in unlisted companies,
the fair value is determined in accordance with the International
Private Equity and Venture Capital ("IPEV") Valuation Guidelines.
These include the use of recent arm's length transactions,
Discounted Cash Flow ("DCF") analysis and earnings multiples.
Wherever possible, the Group uses valuation techniques which make
maximum use of market based inputs.
The following considerations are used when calculating the fair
value of unlisted life science companies:
-- Cost is generally deemed to be fair value as of the transaction date. Similarly, where there
has been a recent investment in the unlisted company by third parties, the Price of Recent
Investment ("PRI") is generally deemed to be fair value as of the transaction date, although
further judgement may be required to the extent that the instrument in which the recent investment
was made is different from the instrument held by the Group.
-- The length of period for which it remains appropriate to deem cost or PRI fair value depends
on the specific circumstances of the investment and the stability of the external environment
and adequate consideration needs to be given to the current facts and circumstances. Where
this calibration process shows there is objective evidence that an investment has been impaired
or increased in value since the investment was made, such as observable data suggesting a
change of the financial, technical or commercial performance of the underlying investment,
the Group carries out an enhanced assessment based on one of the alternative methodologies
set out in the IPEV Valuation Guidelines.
-- DCF involves estimating the fair value of an investment by calculating the present value of
expected future cash flows, based on the most recent forecasts in respect of the underlying
business. Given the difficulty involved with producing reliable cash flow forecasts for seed,
start-up and early-stage companies, the DCF methodology will more commonly be used in the
event that a life science company is in the final stages of clinical testing prior to regulatory
approval or has filed for regulatory approval.
-- Independent Adviser - the Group's determination of the fair values of certain investments
at 31 March 2019 took into consideration multiple sources including management and publicly
available information and publications and certain input from independent advisers L.E.K.
Consulting LLP ("L.E.K."), who have undertaken an independent review of certain investments
and have assisted the Group with its valuation of such investments. The review was limited
to certain limited procedures that the Group identified and requested it to perform within
an agreed limited scope.
-- As with any review of investments these can only be considered in the context of the limited
procedures and agreed scope defining such review and are subject to assumptions which may
be forward looking in nature and subjective judgements. Upon completion of such limited agreed
procedures, L.E.K. estimated an independent range of fair values of those investments subjected
to the limited procedures. In making such a determination the Group considered the review
as one of multiple inputs in the determination of fair value. The limited procedures within
the agreed scope are limited by the information reviewed and did not involve an audit, review,
compilation or any other form of verification, examination or attestation under generally
accepted auditing standards and was based on the review of multiple defined sources. The Group
is responsible for determining the fair value of the investments, and the agreed limited procedures
in the review performed to assist the Group in its determination are supplementary to the
inquiries and procedures that the Group is required to undertake to determine the fair value
of the said investments for which the Directors are ultimately responsible.
Where the Group is the sole institutional investor and until
such time as substantial clinical data has been generated, the cost
or PRI will generally be deemed to be fair value subject to
adequate consideration being given to current facts and
circumstances. Once substantial clinical data has been generated
the Group will use input from an independent valuations advisor to
assist in the determination of fair value.
Valuation of the life science % of life science % of net assets
portfolio portfolio
------------------------------ ----------------- ---------------
Calibrated Cost 45.0 16.2
------------------------------ ----------------- ---------------
Calibrated PRI 15.0 5.4
------------------------------ ----------------- ---------------
Quoted 31.0 11.2
------------------------------ ----------------- ---------------
Adjusted Price of Recent
Investment 0.8 0.3
------------------------------ ----------------- ---------------
Third Party 8.2 2.9
------------------------------ ----------------- ---------------
Clinical trial disclosure process
Currently, Syncona's portfolio companies are progressing with
seven clinical trials. These trials represent both a significant
opportunity and risk for each company and for Syncona Ltd.
Unlike typical randomised controlled pharmaceutical clinical
trials, currently all seven clinical trials are open-label trials.
Open label trials are clinical studies in which both the
researchers and the patients are aware of the drug being given. In
some cases the number of patients in a trial may be relatively
small. Data is generated as each patient is dosed with the drug in
a trial and is collected over time as results of the treatment are
analysed and, in the early stages of these studies, dose-ranging
studies are completed.
Because of the trial design, clinical data in open-label trials
is received by our portfolio companies on a frequent basis.
However, individual data points need to be treated with caution,
and it is typically only when all or substantially all of the data
from a trial is available and can be analysed that meaningful
conclusions can be drawn from that data about the prospect of
success or otherwise of the trial. In particular it is highly
possible that early developments (positive or negative) in a trial
can be overtaken by later analysis with further data as the trial
progresses.
Our portfolio companies may decide or be required to announce
publicly interim clinical trial data, for example where the company
or researchers connected with it are presenting at a scientific
conference, and Syncona will generally also issue a simultaneous
announcement about that clinical trial data. Syncona would also
expect to announce its assessment of the results of a trial at the
point we conclude on the data available to us that it has succeeded
or failed. We would not generally expect to announce our assessment
of interim clinical data in an ongoing trial otherwise, although we
will review all such data to enable us to comply with our legal
obligations such as under the EU Market Abuse Regulation or
otherwise.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company for the
second half of the financial year are substantially the same as
those disclosed in the Report and Accounts for the year ended 31
March 2019. These include:
- Failure to attract or retain key personnel
- Risk in making early stage investments
- Clinical trial risks
- General, commercial and technological risks
- Dominance of portfolio by a few larger investments and/or
sector focus
- Financing and exit risk
- Capital Pool risk
- Systems and controls
- Impact of political and economic uncertainty, and changes to
law and regulation
Going Concern
The factors likely to affect the Company's ability to continue
as a going concern were set out in the Report and Accounts for the
year ended 31 March 2019. As at 30 September 2019, there have been
no significant changes to these factors. Having reviewed the
Company's assets and liabilities and other relevant evidence, the
Directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the 12
months following the approval of these half-yearly financial
statements. Accordingly, they continue to adopt the going concern
basis in preparing the half-yearly financial statements.
Statement of Directors' Responsibilities
The directors confirm that the interim financial statements have
been prepared in accordance with IAS 34 as adopted by the European
Union and that the business review includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months of the financial year and their impact on the
interim financial statements, and a description of the principal
risks and uncertainties for the remaining six months of the
financial year; and
-- material related-party transactions in the first six months
of the financial year and any material changes in the related-party
transactions described in the last annual report.
The Directors of Syncona Limited are listed in the Syncona
Limited Report & Accounts for the year ended 31 March 2019. A
list of current directors is maintained on the Syncona Limited
website:
https://www.synconaltd.com/about-us/our-people?b=true#profiles.
Jeremy Tigue, Chairman, Syncona Limited
20 November 2019
INDEPENT REVIEW REPORT TO SYNCONA LIMITED
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2019 which comprises the Consolidated
Statement of Comprehensive Income, Consolidated Statement of
Financial Position, Consolidated Statement of Changes in Net Assets
Attributable to Holders of Ordinary Shares, Consolidated Statement
of Cash Flows and related notes 1 to 14. We have read the other
information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements
This report is made solely to the company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. Our work has been undertaken so that we might
state to the company those matters we are required to state to it
in an independent review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company, for our review
work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority. As disclosed in note 2, the annual
financial statements of the Group are prepared in accordance with
IFRSs as adopted by the European Union. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with International Accounting
Standard 34 "Interim Financial Reporting" as adopted by the
European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2019 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Deloitte LLP
St Peter Port, Guernsey
20 November 2019
SYNCONA LIMITED
GROUP PORTFOLIO STATEMENT
As at 30 September 2019
% of
Fair Value Group NAV
GBP'000 2019
Life science portfolio
Life science companies
Autolus Therapeutics plc 147,446 11.0
Freeline Therapeutics Limited 118,500 8.9
Achilles Therapeutics Limited 72,413 5.4
Gyroscope Therapeutics Limited 55,975 4.2
Swanbio Therapeutics Limited 18,712 1.4
Companies of less than 1% of NAV 29,209 2.2
Total life science companies 442,255 33.1
CRT Pioneer Fund 39,089 2.9
Total life science portfolio (1) 481,344 36.0
---------- ----------
Capital pool investments
Fixed income funds 247,110 18.5
UK Treasury bills 479,678 35.9
Legacy funds 104,185 7.8
Open forward currency contracts 1,820 0.1
Total capital pool investments 832,793 62.3
---------- ----------
Other net assets
Cash and cash equivalents (2) 39,053 2.9
Charitable donations (2,020) (0.2)
Other assets and liabilities (14,368) (1.0)
Total other net assets 22,665 1.7
---------- ----------
Total net asset value of the Group 1,336,802 100.0
========== ==========
(1) The life science portfolio of GBP481,343,686 consists of
life science investments totalling GBP442,254,200 held by Syncona
Holdings Limited and the CRT Pioneer Fund of GBP39,089,486 held by
Syncona Investments LP Incorporated.
(2) Total cash held by the Group is GBP39,052,883. Of this
amount GBP12,570 is held by Syncona Limited. The remaining
GBP39,040,313 is held by its subsidiaries other than portfolio
companies ("Syncona Group Companies").
Cash held by Syncona Group Companies is not shown in Syncona
Limited's Consolidated Statement of Financial Position.
See note 1 for a description of Syncona Holdings Limited and
Syncona Investments LP Incorporated.
SYNCONA LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 September 2019
Unaudited Unaudited
six months six months Audited
to to year
30 September 30 September to 31 March
Notes Revenue Capital 2019 2018 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment income
Other income 26,110 - 26,110 25,305 34,631
Total investment
income 26,110 - 26,110 25,305 34,631
------- --------- ------------- ------------- ------------
Net (losses)/gains
on financial assets
at fair value through
profit or loss 5 - (120,909) (120,909) 340,268 404,487
Total (losses)/gains - (120,909) (120,909) 340,268 404,487
------- --------- ------------- ------------- ------------
Expenses
Charitable donations 6 2,020 - 2,020 2,376 4,300
General expenses 8,361 - 8,361 12,949 23,556
Total expenses 10,381 - 10,381 15,325 27,856
------- --------- ------------- ------------- ------------
(Loss) / Profit for
the period 15,729 (120,909) (105,180) 350,248 411,262
======= ========= ============= ============= ============
Diluted Earnings
per Ordinary Share 9 2.38p (18.25)p (15.87)p 53.01p 62.24p
======= ========= ============= ============= ============
The total columns of this statement represent the Group's
Consolidated Statement of Comprehensive Income, prepared in
accordance with International Financial Reporting Standards as
adopted by the European Union and interpretations adopted by the
International Accounting Standards Board. Whilst the Company is not
a member of the Association of Investment Companies (the "AIC"),
the supplementary revenue and capital columns are both prepared
under guidance published by the AIC.
The profit for the period is equivalent to the "total
comprehensive income" as defined by IAS 1 "Presentation of
Financial Statements" ("IAS 1"). There is no other comprehensive
income as defined by IFRS.
All the items in the above statement derive from continuing
operations.
Notes 1 to 14 form an integral part of the Condensed
Consolidated Financial Statements.
SYNCONA LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2019
Unaudited Unaudited Audited
30 September 30 September 31 March
Notes 2019 2018 2019
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Financial assets at fair value
through profit or loss 7 1,347,503 1,405,839 1,470,078
Current assets
Bank and cash deposits 13 2,015 91
Trade and other receivables 4,496 4,489 8,833
Total assets 1,352,012 1,412,343 1,479,002
------------- ------------- -----------
LIABILITIES AND EQUITY
Non-current liabilities
Share based payment 8 6,716 9,475 10,834
Current liabilities
Share based payment 8 7,502 1,343 6,351
Payables 992 7,545 6,704
Total liabilities 15,210 18,363 23,889
------------- ------------- -----------
EQUITY
Share capital 9 767,999 766,037 766,037
Distributable capital reserves 568,803 627,943 689,076
Total equity 1,336,802 1,393,980 1,455,113
------------- ------------- -----------
Total liabilities and equity 1,352,012 1,412,343 1,479,002
------------- ------------- -----------
Total net assets attributable
to holders of Ordinary Shares 1,336,802 1,393,980 1,455,113
============= ============= ===========
Number of Ordinary Shares in
Issue 9 663,665,537 661,222,309 661,222,309
------------- ------------- -----------
Net assets attributable to
holders of Ordinary Shares
(per share) 9 GBP2.01 GBP2.11 GBP2.20
------------- ------------- -----------
Diluted NAV (per share) 9 GBP1.99 GBP2.08 GBP2.17
============= ============= ===========
The unaudited Consolidated Financial Statements were approved on
20 November 2019.
Notes 1 to 14 form an integral part of the Condensed
Consolidated Financial Statements.
SYNCONA LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO
HOLDERS OF ORDINARY SHARES
As at 30 September 2019
Share
capital Capital Revenue
Notes account reserves reserves Total
GBP'000 GBP'000 GBP'000 GBP'000
As at 31 March 2018 (audited) 763,016 292,747 - 1,055,763
Total comprehensive income
for the period - 340,268 9,980 350,248
Transactions with shareholders:
Distributions 10 - (5,072) (10,106) (15,178)
Scrip dividend shares
issued during the period 9 3,021 - - 3,021
Share based payment - - 126 126
As at 30 September 2018
(unaudited) 766,037 627,943 - 1,393,980
======== ========= ========= =========
Total comprehensive income
for the period - 64,219 (3,205) 61,014
Transactions with shareholders:
Distributions 10 - (3,086) 3,086 -
Share based payments - - 119 119
As at 31 March 2019 (audited) 766,037 689,076 - 1,455,113
======== ========= ========= =========
Total comprehensive income
for the period - (120,909) 15,729 (105,180)
Transactions with shareholders:
Distributions 10 - 636 (15,844) (15,208)
Scrip dividend shares
issued during the period 9 1,962 - - 1,962
Share based payment - - 115 115
As at 30 September 2019
(unaudited) 767,999 568,803 - 1,336,802
======== ========= ========= =========
Notes 1 to 14 form an integral part of the Condensed
Consolidated Financial Statements.
SYNCONA LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 30 September 2019
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
Notes 2019 2018 2019
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit for the period (105,180) 350,248 411,262
Adjusted for:
Losses/(gains) on financial
assets at fair value through
profit or loss 5 120,909 (340,268) (404,487)
------------- ------------- ------------
Operating cash flows before
movements in working capital 15,729 9,980 6,775
Decrease/(increase) in other
receivables 4,337 956 (3,388)
Increase/(decrease) in other
payables 8,506 (2,246) (3,087)
------------- ------------- ------------
Net cash generated from operating
activities 28,572 8,690 300
------------- ------------- ------------
Cash flows from investing activities
Purchase of financial assets
at fair value through profit
or loss (65,717) (129,092) (119,419)
Proceeds from financial assets
at fair value through profit
or loss 50,313 - -
Return of capital contribution - 133,593 130,386
------------- ------------- ------------
Net cash (used)/generated from
investing activities (15,404) 4,501 10,967
------------- ------------- ------------
Cash flows from financing activities
Distributions 10 (13,246) (12,157) (12,157)
------------- ------------- ------------
Net cash used in financing
activities (13,246) (12,157) (12,157)
------------- ------------- ------------
Net (decrease)/increase in
cash and
cash equivalents (78) 1,034 (890)
Cash and cash equivalents at
beginning of period 91 981 981
------------- ------------- ------------
Cash and cash equivalents at
end of period 13 2,015 91
============= ============= ============
Supplemental disclosure of
non-cash investing and financing
activities
Issue of shares 9 1,962 3,021 3,021
Scrip dividend shares issued
during the period 9,10 (1,962) (3,021) (3,021)
------------- ------------- ------------
Net non-cash investing and
financing activities - - -
------------- ------------- ------------
Cash held by the Company and Syncona Group Companies is
disclosed in the group portfolio statement.
SYNCONA LIMITED
CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 30 September 2019
1. GENERAL INFORMATION
Syncona Limited (the "Company") is incorporated in Guernsey as a
registered closed-ended investment company. The Company's Ordinary
Shares were listed on the premium segment of the London Stock
Exchange ("LSE") on 26 October 2012 when it commenced its
business.
The Company makes its life science investments through Syncona
Holdings Limited (the "Holding Company"), a subsidiary of the
Company. The Company maintains its capital pool through Syncona
Investments LP Incorporated (the "Partnership") in which the
Company is the sole limited partner. The general partner of the
Partnership is Syncona GP Limited (the "General Partner"), a
wholly-owned subsidiary of the Company. Syncona Limited and Syncona
GP Limited are collectively referred to as the "Group".
Syncona Limited's Investment Manager is Syncona Investment
Management Limited ("SIML" or the "Investment Manager"), a
subsidiary of the Holding Company.
2. ACCOUNTING POLICIES
The accounting policies applied in these interim results are the
same as those applied by the Group in its Annual Report and
Accounts for the year ended March 2019 and shall form the basis of
the 2020 Annual Report and Accounts, except that the Board no
longer considers that the Group operates two segments. No new
standards that have become effective in the period have had a
material effect on the Group's financial statements.
Statement of compliance
The condensed consolidated financial statements have been
prepared in accordance with IAS 34 "Interim Financial Reporting"
and should be read in conjunction with the Annual Report and
Accounts for the year ended March 2019, which have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union, and are in compliance
with The Companies (Guernsey) Law 2008. The financial information
in these interim accounts was approved by the Board and authorised
for issue on 20 November 2019. The financial information is
unaudited but has been subject to a review by the Group's
independent auditor.
Basis of preparation
The condensed consolidated financial statements have been
prepared under the historical cost basis, except for investments
and derivatives held at fair value through profit or loss, which
have been measured at fair value.
Going concern
The financial statements are prepared on a going concern basis.
The Company's net assets currently consist of securities and cash,
amounting to GBP1,336.8 million (September 2018: GBP1,394.0
million, March 2019: GBP1,455.1 million) of which 59.2% (September
2018: 21.7%, March 2019: 34.6%) are readily realisable within three
months in normal market conditions and liabilities including
uncalled commitments to underlying investments and funds amounting
to GBP103.5 million (September 2018: GBP97.2 million, March 2019:
GBP121.6 million). Accordingly, the Company has adequate financial
resources to continue in operational existence for 12 months
following the approval of the condensed consolidated financial
statements. Hence, the Directors believe that it is appropriate to
continue to adopt the going concern basis in preparing the
condensed consolidated financial statements.
Basis of consolidation
The General Partner is consolidated in full; the Company and the
General Partner consolidated form the Group. All intra-group
transactions, balances and expenses are eliminated on
consolidation. Entities that meet the definition of an Investment
Entity under IFRS 10 "Consolidated Financial Statements" are held
at fair value through profit or loss in accordance with IFRS 9
"Financial Instruments: Recognition and Measurement". The
Partnership and the Holding Company both meet the definition of
Investment Entities.
3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND
ASSUMPTIONS
The preparation of the interim results requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses at the reporting date.
However, uncertainties about these assumptions and estimates, in
particular relating to underlying investments of private equity
investments and life science investments could result in outcomes
that require a material adjustment to the carrying value of the
assets or liabilities in future periods.
In preparing these interim results, the significant judgements
made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those
applied to the Annual Report and Accounts for the year ended March
2019.
The key critical accounting judgements are, the fair value of
life science investments, the functional currency and the
assessment as an investment entity.
The key sources of estimation uncertainty are the valuation of
the Holding Company's life science investments, the investment in
the CRT Pioneer Fund and the valuation of the Partnership's private
equity investments.
4. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES
The Company meets the definition of an investment entity in
accordance with IFRS 10. Therefore, with the exception of the
General Partner, the Company does not consolidate its subsidiaries
and indirect associates, but rather recognises them as financial
assets at fair value through profit or loss.
Directly owned subsidiaries
Principal place
Subsidiary of business Principal activity % interest(1)
Syncona GP Limited Guernsey General Partner 100%
Syncona Holdings Limited Guernsey Portfolio management 100%
Syncona Investments LP Incorporated Guernsey Portfolio management 100%
There are no significant restrictions on the ability of
subsidiaries to transfer funds to the Company.
Indirect interests in subsidiaries
Principal
place
Indirect subsidiaries of business Immediate parent Principal activity % interest(1)
Syncona Investments
Syncona Discovery Limited UK LP Inc Portfolio management 100%
Syncona Holdings
Syncona Portfolio Limited Guernsey Limited Portfolio management 100%
Syncona Portfolio
Syncona IP Holdco Limited UK Limited Portfolio management 100%
Syncona Investment Management Syncona Holdings
Limited UK Limited Portfolio management 100%
Syncona Collaboration Syncona Portfolio
(E) Limited UK Limited Research 100%
Freeline Therapeutics Syncona Portfolio
Limited UK Limited Gene therapy 88%
Gyroscope Therapeutics Syncona Portfolio
Limited UK Limited Gene therapy 85%
Achilles Therapeutics Syncona Portfolio
Limited UK Limited Cell therapy 54%
Syncona Portfolio
Quell Therapeutics Limited UK Limited Cell therapy 58%
SwanBio Therapeutics Syncona Portfolio
Limited USA Limited Gene therapy 78%
Principal
place
Indirect associates of business Immediate parent Principal activity % interest(1)
Syncona Portfolio
Omass Therapeutics Limited UK Limited Cell therapy 47%
Autolus Therapeutics Syncona Portfolio
plc UK Limited Cell therapy 32%
Syncona Portfolio
Anaveon AG Switzerland Limited Immunotherapy 20%
(1) Based on undiluted issued share capital and excluding the
MES issued by Syncona Holdings Limited (see note 8).
5. NET (LOSSES)/GAINS ON FINANCIAL ASSETS AT FAIR VALUE THROUGH
PROFIT OR LOSS
The net (losses)/gains on financial assets at fair value through
profit or loss arise from the Group's holdings in the Holding
Company and Partnership.
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
Notes 2019 2018 2019
GBP'000 GBP'000 GBP'000
Net gains/(losses) from:
The Holding Company 5.a (109,565) 336,267 431,893
The Partnership 5.b (11,344) 4,001 (27,406)
(120,909) 340,268 404,487
============= ============= ============
5.a Movements in the Holding Company:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Expenses (1) (52) (100)
Net expense of Syncona Portfolio
Limited - (117) -
Foreign currency losses on investments - (404) -
Movement in unrealised (losses)/gains
on investments at fair value through
profit or loss (109,564) 336,840 431,993
Net (losses)/gains on financial
assets at fair value through profit
or loss (109,565) 336,267 431,893
============= ============= ============
5.b Movements in the Partnership:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Investment income 246 528 610
Rebates and donations 236 1,548 2,527
Expenses (31) (101) (63)
Realised gains on financial assets
at fair value through profit or
loss 20,064 15,938 76,965
Movement in unrealised gains/(losses)
on financial assets at fair value
through profit or loss 142 23,331 (60,459)
(Losses)/gains on forward currency
contracts (8,338) (15,741) 997
Gains/(losses) on foreign currency 2,447 3,803 (13,352)
------------- ------------- ------------
Gains on financial assets at fair
value through profit or loss 14,766 29,306 7,225
Distributions (26,110) (25,305) (34,631)
------------- ------------- ------------
Net gains/(losses) on financial
assets at fair value through profit
or loss (11,344) 4,001 (27,406)
============= ============= ============
6. CHARITABLE DONATIONS
The Group has an obligation to make a donation to charity of
0.3% of the total NAV of the Group calculated on a monthly basis,
half donated to The Institute of Cancer Research ("ICR") and half
donated to The Syncona Foundation, and these donations are made by
the General Partner. The Group agreed with The Syncona Foundation
that the charitable donations to it would not be less than
GBP2,375,804 for the year ended 31 March 2019. The donation to ICR
in any year may be reduced by the amount of certain enhanced
donations that were paid in respect of the years ending 31 March
2017 and 31 March 2018, provided that no such reductions may be
made that would reduce the charitable donation to ICR below
GBP2,375,804.
During the period, accrued charitable donations amounted to
GBP2,020,265 (September 2018: GBP2,375,804, March 2019:
GBP4,300,155). As at 30 September 2019, GBP2,020,265 (September
2018: GBP2,375,804, March 2019: GBP4,300,155) remained payable.
7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
Notes 2019 2018 2019
GBP'000 GBP'000 GBP'000
The Holding Company 7.a 975,382 896,128 1,048,250
The Partnership 7.b 372,121 509,711 421,828
1,347,503 1,405,839 1,470,078
============= ============= ============
7.a The net assets of the Holding Company
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Cost of the Holding Company's investment
at the start of the period 456,932 325,510 325,510
Purchases during the period 36,378 71,514 131,422
Cost of the Holding Company's investments
at the end of the period 493,310 397,024 456,932
Net unrealised gains on investments
at the end of the period 484,903 497,911 594,148
------------- ------------- ------------
Fair value of the Holding Company's
investments at the end of the period 978,213 894,935 1,051,080
Other current assets/(liabilities) (2,831) 1,193 (2,830)
Financial assets at fair value
through profit or loss at the end
of the period 975,382 896,128 1,048,250
============= ============= ============
7.b The net assets of the Partnership
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Cost of the Partnership's investments
at the start of the period 183,257 376,993 381,381
Purchases during the period 1,229,834 20,524 170,275
Sales during the period (608,873) (103,894) (433,051)
Return of capital (6,735) (6,268) (12,313)
Net realised gains on disposals
during the period 20,064 14,839 76,965
------------- ------------- ------------
Cost of the Partnership's investments
at the end of the period 817,547 302,194 183,257
Net unrealised gains on investments
at the end of the period 52,515 134,151 52,916
------------- ------------- ------------
Fair value of the Partnership's
investments at the end of the period 870,062 436,345 236,173
Open forward currency contracts 1,820 933 1,908
Cash and cash equivalents 34,118 94,322 198,705
Other current liabilities (533,879) (21,889) (14,958)
Financial assets at fair value
through profit or loss at the end
of the period 372,121 509,711 421,828
============= ============= ============
8. SHARE BASED PAYMENTS
Share based payments are associated with awards of Management
Equity Shares ("MES") in the Holding Company, relevant details of
which are set out in note 2 of the Annual Report and Accounts for
the year ended 31 March 2019.
The total cost recognised in the Consolidated Statement of
Comprehensive Income is shown below:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Charge relating to issue of new
MES - 273 -
Charge relating to previously issued
MES - 79 -
Charge related to revaluation of
the liability for cash settled
share awards 2,937 5,164 11,792
Total 2,937 5,516 11,792
============= ============= ============
The charge related to the issue of new MES recorded in the
accounts of SIML was GBP319,000 (30 September 2018:
GBP355,000).
Amounts recognised in the Consolidated Statement of Financial
Position, representing the carrying amount of liabilities arising
from share based payments transactions, are shown below:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Share based payments - current 7,502 1,343 6,351
Share based payments - non-current 6,716 9,475 10,834
Total 14,218 10,818 17,185
============= ============= ============
When a participant elects to realise vested MES by sale of the
MES to the Company, half of the proceeds (net of anticipated taxes)
will be settled in shares of the Company, with the balance settled
in cash.
The fair value of MES is established via external valuation as
set out in note 2 of the Annual Report and Accounts. Vesting is
subject only to the condition that employees must remain in
employment at the vesting date. Each MES is entitled to share
equally in value attributable to the Holding Company above the
applicable base line value, provided that the applicable hurdle
value of 15% or 30% growth in the value of the Holding Company
above the base line value at the date of award has been
achieved.
The fair value of awards made in the period ended 30 September
2019 was GBP260,000 (September 2018: GBP1,260,000, March 2019:
GBP1,520,000).
The number of MES outstanding are shown below:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
Outstanding at start of the period 36,784,147 27,664,909 27,664,909
Issued 9,559,389 9,075,343 12,607,898
Cancelled - (54,727) (3,488,660)
Realised (4,145,365) (163,991) -
------------- ------------- ------------
Outstanding at end of the period 42,198,171 36,521,534 36,784,147
============= ============= ============
Weighted average remaining unvested
life of outstanding MES, years 2.23 2.62 2.24
Vested MES at the end of the period 12,459,727 7,230,521 14,798,030
Realisable MES at the end of the
period 248,528 1,807,630 3,900,433
If all MES were realised at the share price of GBP2.21 as at 30
September 2019, the number of shares issued in the Company would
increase by 8,525,594 (September 2018: 8,548,792, March 2019:
10,046,397). The undiluted per share value of net assets
attributable to holders of Ordinary Shares would fall from GBP2.01
to GBP1.99 if these shares were issued.
9. SHARE CAPITAL
9.a Authorised share capital
The Company is authorised to issue an unlimited number of
shares, which may or may not have a par value. The Company is a
closed-ended investment company with an unlimited life.
As the Company's shares have no par value, the share price
consists solely of share premium and the amounts received for
issued shares are recorded in the share capital in accordance with
The Companies (Guernsey) Law, 2008.
Unaudited Unaudited Audited
Ordinary Ordinary Ordinary
Shares at Shares at Shares at
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Ordinary share capital
Balance at the start of the period 766,037 763,016 763,016
Scrip dividend shares issued during
the period 1,962 3,021 3,021
Balance at the end of the period 767,999 766,037 766,037
============= ============= ==========
Unaudited Unaudited Audited
Ordinary Ordinary Ordinary
Shares at Shares at Shares at
30 September 30 September 31 March
2019 2018 2019
Shares Shares Shares
Ordinary share capital
Balance at the start of period 661,222,309 659,952,090 659,952,090
Scrip dividend shares issued during
the period 860,090 1,249,383 1,249,383
Share based payment shares issued
during the period 1,583,138 20,836 20,836
Balance at the end of the period 663,665,537 661,222,309 661,222,309
============= ============= ===========
During the period GBP1,961,865 (860,090 Ordinary Shares) in new
Ordinary Shares were issued at a price of 228.1p as a result of the
2019 scrip dividend.
In August 2018, GBP3,021,008 (1,249,383 Ordinary Shares) in new
Ordinary Shares were issued at a price of 241.8p as a result of the
2018 scrip dividend.
The Company has issued one Deferred Share to The Syncona
Foundation for GBP1.
9.b Capital reserves
Gains and losses recorded on the realisation of investments,
realised exchange differences, unrealised gains and losses recorded
on the revaluation of investments held at the period end and
unrealised exchange differences of a capital nature are transferred
to capital reserves.
9.c Earnings per share
The calculations for the earnings per share attributable to the
Ordinary Shares of the Company are based on the following data:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
Earnings for the purposes of earnings
per share GBP(105,180,000) GBP350,247,751 GBP411,262,000
Basic weighted average number of
shares 662,645,208 660,759,419 660,759,419
Basic revenue earnings per share 2.38p 1.51p 1.0p
Basic capital earnings per share (18.25)p 51.50p 61.2p
Basic earnings per share (15.87)p 53.01p 62.2p
Diluted weighted average number
of shares 671,170,802 669,308,211 670,805,816
Diluted revenue earnings per shares 2.35p 1.49p 1.0p
Diluted capital earnings per share (18.02)p 50.84p 60.3p
Diluted earnings per share (15.67)p 52.33p 61.3p
9.d NAV per share
Unaudited Unaudited Audited 31
30 September 30 September March
2019 2018 2019
Net assets for the purposes of
NAV per share GBP1,336,802,000 GBP1,393,979,882 GBP1,455,112,953
Ordinary Shares in issue 663,665,537 661,222,309 661,222,309
NAV per share 201.43p 210.80p 220.1p
Diluted number of shares 672,191,131 669,771,101 671,268,706
Diluted NAV per share 198.87p 208.13p 216.8p
10. DISTRIBUTION TO SHAREHOLDERS
The Company may pay a dividend at the discretion of the
Board.
During the period ended 30 September 2019, the Company declared
and paid a dividend of 2.3p per share amounting to GBP15,208,113
(September 2018: GBP15,178,477) relating to the year ended March
2019 (March 2018). The dividend was comprised of GBP13,246,248 cash
(September 2018: GBP12,157,469) and a scrip dividend of
GBP1,961,865 (September 2018: GBP3,021,008). The Directors believe
that it is no longer appropriate for the Group to pay a
dividend.
11. RELATED PARTY TRANSACTIONS
The Group has various related parties: life sciences investments
held by the Holding Company, the Investment Manager, the Company's
Directors and The Syncona Foundation.
Life science investments
The Group makes equity investments in some life science
investments where it retains control. The Group has taken advantage
of the investment entity exception as permitted by IFRS 10 and has
not consolidated these investments, but does consider them to be
related parties. The total amounts included for investments where
the Group has control are set out below:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Investments with control 275,245 360,257 420,949
============= ============= ============
The Group makes other equity investments where it does not have
control but may have significant influence through its ability to
participate in the financial and operating policies of these
companies, therefore the Group considers them to be related
parties. The total amounts included for investments where the Group
has significant influence are set out below:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Investments with significant influence 161,159 536,924 593,745
============= ============= ============
Investment Manager
For the period ended 30 September 2019 SIML was entitled to
receive an annual fee of up to 1.10% (September 2018: 1.10%, March
2019: 1.10%) of the Company's NAV per annum.
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Amounts paid to SIML 4,170 3,808 8,923
============= ============= ============
During the period, SIML received fees from portfolio companies
of GBP188,000 (September 2018: GBP221,000, March 2019
GBP478,522).
Company Directors
At the period end the Company had eight Directors, all of whom
served in a Non-Executive capacity. The Directors Jeremy Tigue,
Nicholas Moss and Rob Hutchinson also serve as Directors of the
General Partner.
Nigel Keen is Chairman of the Investment Manager and receives a
fee of GBP128,388 per annum, payable by the Investment Manager, in
respect of his services to the Investment Manager.
Melanie Gee was appointed as Non-Executive Director with effect
from 4 June 2019.
Directors' fees for period ended 30 September 2019, including
outstanding Directors' fees at the end of the period, are set out
below:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Directors' fees for the period 191 178 355
============= ============= ============
Payable at end of period - - 125
============= ============= ============
The Syncona Foundation
Charitable donations are made by the Group to The Syncona
Foundation. The Syncona Foundation was incorporated in England and
Wales on 17 May 2012 as a private company limited by guarantee,
with exclusively charitable purposes and holds the Deferred Share
in the Company. The amount donated to The Syncona Foundation during
the period ended 30 September 2019 was GBP2,375,804 (September
2018: GBP2,375,804, March 2019: GBP2,375,804).
12. FAIR VALUE MEASUREMENT
IFRS 13 "Fair value measurement" requires the Group to establish
a fair value hierarchy that prioritises the inputs to valuation
techniques used to measure fair value. The hierarchy gives the
highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). The
three levels of the fair value hierarchy under IFRS 13 are set as
follows:
-- Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities;
-- Level 2 Inputs other than quoted prices included within Level
1 that are observable for the asset or liability either directly
(that is, as prices) or indirectly (that is, derived from prices)
or other market corroborated inputs; and
-- Level 3 Inputs for the asset or liability that are not based
on observable market data (that is, unobservable inputs).
The level in the fair value hierarchy within which the fair
value measurement is categorised in its entirety is determined on
the basis of the lowest level input that is significant to the fair
value measurement. For this purpose, the significance of an input
is assessed against the fair value measurement in its entirety. If
a fair value measurement uses observable inputs that require
significant adjustment based on unobservable inputs, that
measurement is a Level 3 measurement. Assessing the significance of
a particular input to the fair value measurement requires
judgement, considering factors specific to the asset or
liability.
The determination of what constitutes "observable" requires
significant judgement by the Group. The Group considers observable
data to be market data that is readily available, regularly
distributed or updated, reliable and verifiable, and provided by
independent sources that are actively involved in the relevant
market.
The following table presents the Group's financial assets and
liabilities by level within the valuation hierarchy as at 30
September 2019, 30 September 2018 and 31 March 2019:
30 September 2019 Level 1 Level 2 Level 3 Total
Assets (unaudited) GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair value
through profit or loss:
The Holding Company - - 975,382 975,382
The Partnership - - 372,121 372,121
Total assets - - 1,347,503 1,347,503
======= ======= ========= =========
30 September 2018 Level 1 Level 2 Level 3 Total
Assets (unaudited) GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair value
through profit or loss:
The Holding Company - - 896,128 896,128
The Partnership - - 509,711 509,711
Total assets - - 1,405,839 1,405,839
======= ======= ========= =========
31 March 2019 Level 1 Level 2 Level 3 Total
Assets (audited) GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair value
through profit or loss:
The Holding Company - - 1,048,250 1,048,250
The Partnership - - 421,828 421,828
Total assets - - 1,470,078 1,470,078
======= ======= ========= =========
The following table presents the Holding Company's investments
by level within the valuation hierarchy as at 30 September 2019, 30
September 2018 and 31 March 2019:
Asset type Level 30 30 31 Valuation Significant Impact on
September September March technique unobservable valuation
2019 2018 2019 inputs GBP'000
GBP'000 GBP'000 GBP'000
Listed 1 149,289 542,547 591,493 Publicly n/a n/a
investment available
share
price
at balance
sheet
date
----- --------- --------- ------- ------------- ---------------------------------------------- ---------------------
Forward 2 - - (2,488) Publicly n/a n/a
contracts available
exchange
rates
at
balance
sheet
date
----- --------- --------- ------- ------------- ---------------------------------------------- ---------------------
The main unobservable
input is
the variance in
the price of the
last
funding round
due to a lack of
an
Calibrated active market
price for the investment.
Price of of A reasonable shift
latest latest in the Fair Value
funding funding of the investment
round(1) 3 288,998 132,152 160,719 round would be +/-10%. +/- GBP28,899
----- --------- --------- ------- ------------- ---------------------------------------------- ---------------------
Syncona 3 4,173 2,827 4,051 Net assets - -
Group of Syncona
companies Group
Companies
----- --------- --------- ------- ------------- ---------------------------------------------- ---------------------
Unobservable inputs
include
management's assessment
of the
performance of
the investee company,
uplift in Fair
Value and calculations
of
any impairments.
Future The main
earnings unobservable inputs
potential, are:
discount Discount rate
for lack with a reasonable
Investments of possible shift
valued on marketability of +/-2% Revenue
discounted and time with
cash flow value a reasonable possible
forecasts 3 - 231,644 267,470 of money shift of +/-10%. n/a
----- --------- --------- ------- ------------- ---------------------------------------------- ---------------------
The main unobservable
input is
the variance in
the price of the
last
funding round
due to a lack of
Calibrated an
price active market
of for the investment.
latest A
Adjusted funding reasonable shift
price round in the Fair Value
of latest adjusted of
funding by the investment
round(2) 3 3,968 6,486 3,968 management would be +/-10%. +/- GBP397
----- --------- --------- ------- ------------- ---------------------------------------------- ---------------------
(1) Valuation made by reference to price of recent funding round
unadjusted following adequate consideration of current facts and
circumstances.
(2) Valuation made by reference to price of recent funding round
adjusted following adequate consideration of current facts and
circumstances.
During the period, there were no movements from Level 1 to Level
2 (September 2018: nil, March 2019: nil)
The following table presents the movements in Level 3
investments of the Holding Company for the period ended 30
September 2019:
Unaudited Unaudited Audited
Life six months six months year to
science Syncona to 30 September to 30 September 31 March
investments Group companies 2019 2018 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Opening balance 416,700 4,051 420,751 244,277 254,884
Transfer to Level 3 21,970 - 21,970 9,853 4,177
Purchases 97,814 352 98,166 59,871 71,777
Sales (336,932) (33) (336,965) - -
Gains/(losses) on financial
assets at fair value
through profit or loss 93,414 (197) 93,217 41,064 89,913
------------ ---------------- ---------------- ---------------- ---------
Closing balance 292,966 4,173 297,139 355,065 420,751
============ ================ ================ ================ =========
The net gain for the period included in the Consolidated
Statement of Comprehensive Income in respect of Level 3 investments
of the Holding Company held at the period end amounted to
GBP93,216,803 (September 2018: GBP41,064,418 gain, March 2019:
GBP89,913,000 gain).
The following table presents the Partnership's investments by
level within the valuation hierarchy as at 30 September 2019, 30
September 2018 and 31 March 2019:
Level 30 30 31 Valuation Significant Impact on
September September March technique unobservable valuation
2019 2018 2019 inputs GBP'000
GBP'000 GBP'000 GBP'000
Listed 1 247,110 102,685 - Publicly n/a n/a
investments available
share
price
at balance
sheet
date
----- --------- --------- ------- -------------- ------------------------------------------- -------------------
Listed 2 - 4,381 - Publicly n/a n/a
investments available
share
price
at balance
sheet
date
----- --------- --------- ------- -------------- ------------------------------------------- -------------------
Forward 2 1,820 933 1,908 Publicly n/a n/a
contracts available
exchange
rates
at balance
sheet
date
----- --------- --------- ------- -------------- ------------------------------------------- -------------------
Unlisted 2 53,573 242,506 152,805 Valuation n/a n/a
fund produced
investments by fund
administrator.
Inputs
into
fund
components
are from
observable
inputs
----- --------- --------- ------- -------------- ------------------------------------------- -------------------
UK treasury 2 479,678 - - Publicly n/a n/a
bills available
price
at balance
sheet
date
----- --------- --------- ------- -------------- ------------------------------------------- -------------------
The main unobservable
input
include the assessment
of the
performance of
the underlying
fund by the fund
administrator.
A reasonable possible
Valuation shift in the
Long-term produced Fair Value of
unlisted by fund the instruments
investments 3 50,612 55,732 49,057 administrator would be +/-10%. +/- GBP5,061
----- --------- --------- ------- -------------- ------------------------------------------- -------------------
Unobservable inputs
include the
fund manager's
assessment of the
performance and
potential of the
underlying assets,
changes in
market value and
any calculations
of impairment.
A reasonable
Adjusted possible shift
valuation in the Fair Value
produced of
CRT Pioneer by fund the instruments
Fund 3 39,089 32,839 34,311 administrator would be +/-10%. +/- GBP3,909
----- --------- --------- ------- -------------- ------------------------------------------- -------------------
During the period ending 30 September 2019, there were no
movements from Level 1 to Level 2 (September 2018: GBP4,380,623
transferring from Level 1 to Level 2, March 2019: GBP3,968,218
transferring from Level 1 to Level 2).
Assets classified as Level 2 investments are underlying funds
fair-valued using the latest available NAV of each fund as reported
by each fund's administrator, which are redeemable by the Group
subject to necessary notice being given. Included within the Level
2 investments above are investments where the redemption notice
period is greater than 90 days. Such investments have been
classified as Level 2 because their value is based on observable
inputs.
Assets classified as Level 3 investments are underlying Limited
Partnerships which are not traded or available for redemption. The
fair value of these assets is derived from quarterly statements
provided by each Limited Partnership's administrator. The Group
does not have transparency over the inputs of this valuation.
The following table presents the movements in Level 3
investments of the Partnership for the six months to 30 September
2019, the six months to 30 September 2018 and the year to 31 March
2019:
Unaudited Unaudited
six months six months Audited
Capital to to year to
CRT Pioneer pool 30 September 30 September 31 March
Fund investment 2019 2018 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Opening balance 34,311 49,057 83,368 86,325 86,325
Purchases 4,778 684 5,462 2,950 4,632
Return of capital (147) (6,588) (6,735) (6,268) (12,313)
Gains on financial
assets at fair value
through profit or loss 147 7,459 7,606 5,564 4,724
Closing balance 39,089 50,612 89,701 88,571 83,368
=========== =========== ============= ============= =========
The net gain for the period included in the Consolidated
Statement of Comprehensive Income in respect of Level 3 investments
of the Partnership held at the period end amounted to GBP7,606,688
(September 2018: GBP5,564,287 gain, March 2019: GBP4,473,997
gain).
13. COMMITMENTS AND CONTINGENCIES
The Group had the following commitments as at 30 September 2019,
30 September 2018 and 31 March 2019:
Unaudited Unaudited
six months six months
to to Audited year
30 September 30 September to 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Life science portfolio
Milestone payments to life science
companies 114,318 75,161 101,738
CRT Pioneer Fund 10,137 16,387 14,915
Capital pool investment 4,952 5,618 4,924
------------- ------------
Total 129,407 97,166 121,577
============= ============= ============
There were no contingent liabilities as at 30 September 2019
(September 2018: nil, March 2019: nil). The commitments are
expected to fall due in the next 24 months.
14. SUBSEQUENT EVENTS
These Condensed Consolidated Financial Statements were approved
for issuance by the Board on 20 November 2019. Post period end
Syncona has committed GBP29.5 million to Azeria Therapeutics
Limited of which GBP6.5 million has been invested.
SYNCONA LIMITED
GLOSSARY
Company Syncona Limited
CRT Pioneer Fund The Cancer Research Technologies Pioneer
Fund LP. The CRT Pioneer Fund is managed
by Sixth Element Capital and invests in
oncology focused assets.
Capital pool/Capital Pool of Capital pool investments plus cash
base plus other net assets.
General Partner Syncona GP Limited.
Group Syncona Limited and Syncona GP Limited are
collectively referred to as the "Group".
Holding Company Syncona Holdings Limited.
Investment Manager Syncona Investment Management Limited is
the Alternative Fund Investment Manager.
IRR Internal Rate of Return.
Life Science Portfolio The underlying investments whose activities
focus on developing products to deliver
transformational treatments to patients.
Life Science Portfolio
Return Time Weighted Rate of Return on the Life
Science Portfolio
MES Management Equity Shares.
NAV Net Asset Value.
NAV Total Return Time Weighted Rate of Return on the NAV
Ongoing charges ratio Expenses from all Syncona Group Companies
in addition to the expenses in the Group's
Consolidated Statement of Comprehensive
Income, divided by average NAV for the year.
It includes a charge of GBP2.9m associated
with the Syncona Long-Term Incentive Plan.
Partnership Syncona Investments LP Incorporated.
Return Time Weighted Rate of Return is the method
used for return calculations.
SIML Syncona Investment Management Limited.
Syncona Group Companies The Company and its subsidiaries other than
its portfolio companies.
EBITDA Earnings before interest, tax, depreciation
and amortization.
Company Syncona Limited.
ICR The Institute of Cancer Research.
rDCF Risk Adjusted Discounted Cash Flow.
The Syncona Foundation The Foundation distributes funds to a range
of charities, principally those involved
in the areas of life science and health
care.
[1] Fully diluted, please refer to Note 9d in the financial
statements
[2] Refer to the glossary
[3] Time weighted return, refer to glossary
[4] Equivalent to ROCE
[5] Including the GBP14.2m distribution in 2019 financial year,
Syncona Partners original cost.
[6] Equivalent to ROCE
[7] Syncona Partners original cost.
[8] Refer to glossary
[9] See footnote 1
[10] See footnote 2
[11] Syncona Partners cost
[12] Syncona Partners cost
[13]
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4453676/pdf/bjc2015127a.pdf
[14] 61 per cent on a direct basis, both percentages reflect
full current commitments.
[15] In the US and EU5;
https://autolus.gcs-web.com/static-files/ff93c33a-dca2-4b30-88c2-b19bcd21a211
[16]
https://autolus.gcs-web.com/static-files/80148164-43cb-412f-9483-93cedecd6c5e
[17] http://www.fabry.org/fsig.nsf/pages/fabry
[18] Time weighted return, refer to glossary
[19] Refer to footnote 1
[20] Refer to footnote 2
[21]By value
[22] Refer to the glossary
[23] The ongoing charges ratio includes expenses from all
Syncona Group Companies in addition to the expenses in the Group's
consolidated statement of comprehensive income, divided by average
NAV for the year. It excludes a charge of GBP2.9 million associated
with the Syncona Long-Term Incentive Plan.
[24] For the purposes of fair value, cost is equivalent to
calibrated cost. Please refer to the Valuation Policy in the
Supplementary Information section of this RNS for further
information
[25] Syncona investment team analysis of lead programmes in this
area, indicative only
[26] Syncona investment team analysis of key risks facing the
companies; the companies are subject to other known and unknown
risks, uncertainties and other factors
[27] Source: Autolus - see Autolus corporate presentation
November 2019
https://autolus.gcs-web.com/static-files/cd8dc1d9-6a7b-496d-933f-1a3b0bfbd56a
Autolus' addressable population projected at 3,000 patients US
& EU5
[28] Autolus: see Autolus corporate presentation November 2019
https://autolus.gcs-web.com/static-files/cd8dc1d9-6a7b-496d-933f-1a3b0bfbd56a
[29] Cytokine Release Syndrome
[30] Source: Autolus: see Autolus corporate presentation
November 2019
https://autolus.gcs-web.com/static-files/cd8dc1d9-6a7b-496d-933f-1a3b0bfbd56a
[31] https://www.gilead.com/science-and-medicine/pipeline
[32] Source: Freeline analysis of prevalence in US and EU5.
Analysis is based on World Federation of Haemophilia Global Annual
Survey 2017 http://www1.wfh.org/publications/files/pdf-1714.pdf and
National Haemophilia Foundation; CDC.
[33] https://sparktx.com/scientific-platform-programs/
[34] http://www.uniqure.com/gene-therapy/hemophilia.php
[35] Source: Gyroscope estimate. Age related macular
degeneration, of which one type is dry AMD, is estimated to affect
195.6 million people globally
(https://www.who.int/publications-detail/world-report-on-vision).
Gyroscope's estimated is that there is a population of 2 million
people in the US & EU5 with geographic atrophy, which is late
stage dry AMD.
[36] Source: World Health Organisation:
https://www.who.int/blindness/causes/priority/en/index7.html
[37] https://www.apellis.com/focus-pipeline.html
[38] https://www.geminitherapeutics.com/approach-progress/
[39] https://www.hemerabiosciences.com/clinical-trials/
[40] Source: Achilles calculation of US and UK prevalence. 275,
000 new cases in US and UK, of which 85% are estimated to be NSCLC.
US - 228, 150 https://seer.cancer.gov/statfacts/html/lungb.html; UK
- 47,235
https://www.cancerresearchuk.org/health-professional/cancer-statistics/statistics-by-cancer-type/lung-cancer/incidence
[41] Source: American Cancer Society
https://www.cancer.org/cancer/small-cell-lung-cancer/about/key-statistics.html
[42] Source: American Cancer Society
https://www.cancer.org/cancer/lung-cancer/about/key-statistics.html
[43] Source: Rosenberg et al 2011
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3131487/pdf/nihms286994.pdf
[44] https://www.iovance.com/clinical/pipeline/
[45] https://neontherapeutics.com/product-pipeline/
[46] https://gritstoneoncology.com/our-pipeline/
[47] See for example existing approved product Zolgensma for
spinal muscular atrophy https://www.zolgensma.com/
[48]
https://www.voyagertherapeutics.com/our-approach-programs/gene-therapy/
[49] http://uniqure.com/gene-therapy/huntingtons-disease.php
[50]
http://ir.amicusrx.com/news-releases/news-release-details/amicus-therapeutics-acquires-gene-therapy-portfolio-ten-clinical
[51] https://www.prevailtherapeutics.com/
[52]
http://ir.ptcbio.com/news-releases/news-release-details/ptc-therapeutics-announces-strategic-gene-therapy-licensing
[53]
https://www.ema.europa.eu/en/documents/scientific-guideline/guideline-clinical-investigation-immunosuppressants-solid-organ-transplantation_en.pdf
[54] http://www.autoimmuneregistry.org/autoimmune-statistics
[55]
https://investor.sangamo.com/news-releases/news-release-details/sangamo-and-txcell-announce-completion-acquisition-sangamo
[56]
https://www.cancernetwork.com/renal-cell-carcinoma/managing-toxicities-high-dose-interleukin-2
[57] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4938354/
[58] https://www.nektar.com/pipeline/rd-pipeline/nktr-214
[59]
https://www.roche.com/research_and_development/who_we_are_how_we_work/pipeline.htm:
RG7835
[60]
https://investor.alkermes.com/news-releases/news-release-details/alkermes-announces-clinical-collaboration-fred-hutchinson-cancer
[61] https://synthorx.com/therapeutics/
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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