Schroder UK Public Private Tst plc Sanofi to acquire Kymab (2139L)
January 11 2021 - 2:53AM
UK Regulatory
TIDMSUPP
RNS Number : 2139L
Schroder UK Public Private Tst plc
11 January 2021
Schroder UK Public Private Trust plc (the "Company")
Sanofi to acquire Kymab
The Company (LSE: SUPP) is pleased to announce that portfolio
company Kymab, a clinical-stage biopharmaceutical company
developing fully human monoclonal antibodies with a focus on
immune-mediated diseases and immuno-oncology therapeutics, has
announced its acquisition by Sanofi, a global biopharmaceutical
company.
On Monday, 11(th) January 2021, Sanofi and Kymab announced that
they have entered into a Share and Purchase Agreement ("SPA") under
which Sanofi will acquire Kymab for an upfront payment of
approximately $1.1 billion and up to $350 million upon achievement
of certain milestones.
In August 2020, Kymab announced that KY1005 met both primary
endpoints in a Phase 2a trial in moderate to severe atopic
dermatitis with patients' diseases inadequately controlled with
topical corticosteroids. KY1005 demonstrated a consistent treatment
effect versus placebo across various key endpoints, including in
the Eczema Area and Severity Index EASI and additional objective
clinical measures. Kymab's pipeline also includes the oncology
asset KY1044, an ICOS agonist monoclonal antibody, currently in
early Phase 1/2 development as monotherapy and in combination with
an anti-PD-L1.
The closing of the transaction is subject to the expiration or
termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 and other customary closing
conditions. The Company expects the completion of the transaction
in the first half of 2021.
Based on the terms of the transaction, the Company expects to
receive total initial proceeds of GBP65 million(1) on completion of
the transaction. An additional amount of up to GBP5 million(1) is
subject to potential deductions and a deferred release over the
next 24 months. Furthermore, the Company has the potential for
additional contingent payments of up to GBP20 million(1) subject to
Kymab achieving certain regulatory milestones over a 7 year
period.
It is anticipated that the Company's AIFM will revalue the
holding, leading to a significant uplift to the latest carrying
value of the Company's holding in Kymab which stood at GBP18
million as at 30 September 2020. This will be reflected in the NAV
as at 31 December 2020, which is expected to be announced in April
2021.
A significant portion of the expected proceeds will be used to
pay down a portion of the Company's outstanding credit facility. In
addition, the Company will use the additional liquidity to support
some of its portfolio companies with follow-on capital and further
optimise the portfolio composition by selectively investing into
new opportunities
Tim Creed, portfolio manager of the Company and Schroders' Head
of European Private Equity, commented: "We are proud to have
supported Kymab and its management team in its exciting journey so
far. Simon Sturge and his team have done an outstanding job over
the last few years and it is fantastic to see all their hard work
culminating in this transaction. Since we took over the investment
management of the Company in December 2019, we have had a large
team working with the management teams of the Company's portfolio
to support their strategic development. This successful divestment
is an important milestone for the Company. It demonstrates the high
quality of the Company's investments and the increasing strategic
value of many of the holdings as they mature. The expected proceeds
will help us significantly in our communicated goal to create
liquidity for the Company and reposition the portfolio. We are
confident that we will see other similar success stories in the
future and remain very positive about the prospects for the
Company's portfolio to create long-term shareholder value."
(1) Based on an exchange rate of 1 USD = 0.745 GBP
About Kymab
Kymab is a clinical-stage biopharmaceutical company developing
fully human monoclonal antibody therapeutics with a focus on immune
mediated diseases and immuno-oncology using its proprietary,
integrated platforms collectively called IntelliSelect(R). Kymab's
IntelliSelect Transgenic platforms contain a full diversity of
human antibodies, making them the most comprehensive antibody
platforms available.
Selecting from a broad diversity of fully human antibodies
assures the highest probability of finding drug candidates with
best-in-class characteristics quickly and efficiently.
For more information on Kymab please see http://www.kymab.com .
Kymab and IntelliSelect are trademarks of Kymab Limited.
This announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
Enquiries:
Schroder Investment Management Limited
Gareth Faith Tel: 020 7658
5264
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END
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