Syncona Ltd, a leading healthcare company focused on creating, building and scaling a portfolio of global leaders in life science, today announces its quarterly update covering the period from 01 April to 30 June 2023.
Chris Hollowood, CEO of Syncona Investment Management Limited, said: “We are pleased by progress throughout the portfolio during the period, as our companies work towards their next operational, clinical and commercial milestones. The expected late-stage data from our newest company Beacon, and Autolus’ upcoming BLA filing, represent significant near-term milestones as our later-stage companies move closer towards bringing products to patients.
Whilst the financing environment for biotech companies continues to be challenging, our capital pool of £613.1 million allows us to support our portfolio companies as they navigate these market conditions and we have also been delighted to see continued strong pharma interest in our portfolio. We have seven clinical-stage companies across our increasingly diversified portfolio and we are confident in their ability to execute on their key milestones. We believe the portfolio offers a significant opportunity to realise our ambition to bring transformational treatments to patients and deliver strong risk-adjusted returns to shareholders.”
Key highlights from the update include:
- Net assets of £1,241.8 million (31 March 2023: £1,254.7 million), 184.6p per share (31 March 2023: 186.5p per share), a NAV return of (1.0)% in the period
- Performance in the quarter has been driven by negative foreign exchange movements across the life science portfolio and capital pool with the appreciation of GBP against the dollar leading to an overall net impact of £(14.8) million
- Life science portfolio valued at £628.7 million (31 March 2023: £604.6 million); with the impact of foreign exchange partially offset by an aggregate uplift of £9.8 million, primarily driven by an increase in the share price of Autolus Therapeutics
- £24.4 million deployed in the period; capital pool of £613.1 million at 30 June 2023 (31 March 2023: £650.1 million)
- Syncona portfolio continues to attract pharma validation with Quell Therapeutics entering into a collaboration, exclusive option and license agreement with AstraZeneca to develop, manufacture and commercialise autologous, engineered Treg cell therapies for two autoimmune disease indications
- Positive clinical and operational progress across the portfolio with Autolus approaching its BLA filing for its lead obe-cel therapy in relapsed/refractory adult B-Cell acute lymphoblastic leukaemia, Freeline dosing the first patient with its FLT201 gene therapy in Gaucher disease, and SwanBio dosing two patients in the Phase I/II trial of its SBT101 gene therapy in adrenomyeloneuropathy
Key upcoming milestones in FY2023/4
Late-stage clinical companies
- Autolus expects to:
- Progress its pivotal study in obe-cel in adult r/r B-ALL, with further long-term follow up data in H2 CY2023 and a BLA filing with the FDA expected in H2 CY2023
- Publish initial data from the trial of AUTO8, Autolus’ next-generation product candidate for multiple myeloma, in H2 CY2023
- Initiate a Phase I study of obe-cel in refractory systemic lupus erythematosus (SLE) in early CY2024, extending use of obe-cel into autoimmune diseases
- Beacon expects to release 12-month data from its Phase II trial in XLRP in H2 CY2023
Clinical companies
- Anaveon expects to:
- Announce further data from its Phase I/II dose finding trial of ANV419 in solid tumours in H2 CY2023
- Publish initial data from its Phase I/II trial of ANV419 in metastatic melanoma in CY2024
- Achilles Therapeutics (Achilles) expects to provide further data from the higher dose clinical cohorts of the Phase I/IIa clinical trials of its cNeT therapy in NSCLC and melanoma in Q4 CY2023
- Quell expects to complete the dosing of the safety cohort in its lead programme, QEL-001, in H2 CY2023
- SwanBio has dosed two patients in its Phase I/II AMN programme and Syncona continues to work with the company on a range of financing options
- Freeline expects to report initial data in the Phase I/II dose-finding trial in Gaucher disease in H2 CY2023
Valuation movements in the quarter
|
Company |
31 Mar 2023
|
Net investment in the period |
Valuation change |
FX movement |
30 Jun 2023 |
% of Group NAV |
Valuation |
Fully diluted owner-ship stake |
Focus area |
|
|
(£m) |
(£m) |
(£m) |
(£m) |
(£m) |
|
|
(%) |
|
|
Strategic portfolio companies |
|
|
|
|
|
|
|
|
|
|
Late-stage clinical |
|
|
|
|
|
|
|
|
|
|
Autolus |
50.0 |
0.0 |
15.0 |
(2.2) |
62.8 |
5.0% |
Quoted |
17.9% |
Cell therapy |
|
Beacon |
60.0 |
0.0 |
0.0 |
0.0 |
60.0 |
4.8% |
PRI |
70.1% |
Gene therapy |
|
Clinical |
|
|
|
|
|
|
|
|
|
|
Quell |
86.7 |
0.0 |
0.0 |
(2.5) |
84.2 |
6.8% |
PRI |
34.0% |
Cell therapy |
|
SwanBio |
58.2 |
9.4 |
0.0 |
(1.4) |
66.2 |
5.3% |
Adjusted Cost |
80.0% |
Gene therapy |
|
Anaveon |
64.2 |
0.0 |
0.0 |
(0.5) |
63.7 |
5.1% |
PRI |
38.0% |
Biologics |
|
Achilles |
8.6 |
0.0 |
(0.1) |
(0.2) |
8.3 |
0.7% |
Quoted |
24.5% |
Cell therapy |
|
Freeline |
14.1 |
0.0 |
(8.7) |
(0.3) |
5.1 |
0.4% |
Quoted |
49.2% |
Gene therapy |
|
Pre-clinical |
|
|
|
|
|
|
|
|
|
|
OMass |
43.7 |
0.0 |
0.0 |
0.0 |
43.7 |
3.5% |
PRI |
28.9% |
Small molecules |
|
Resolution |
23.0 |
14.9 |
0.0 |
0.0 |
37.9 |
3.1% |
Cost |
81.1% |
Cell therapy |
|
Purespring |
35.1 |
0.0 |
0.0 |
0.0 |
35.1 |
2.8% |
Cost |
84.0% |
Gene therapy |
|
Clade |
24.3 |
0.0 |
0.0 |
(0.7) |
23.6 |
1.9% |
Cost |
22.4% |
Cell therapy |
|
Mosaic |
7.3 |
0.0 |
0.0 |
0.0 |
7.3 |
0.6% |
Cost |
52.4% |
Small molecules |
|
Kesmalea |
4.0 |
0.0 |
0.0 |
0.0 |
4.0 |
0.3% |
Cost |
57.5% |
Small molecules |
|
Portfolio milestones and deferred consideration |
|
|
|
|
|
|
|
|
|
|
Gyroscope milestone payments[4] |
54.5 |
0.0 |
1.6 |
(1.6) |
54.5 |
4.4% |
DCF |
|
Gene therapy |
|
Beacon deferred consideration |
15.9 |
0.0 |
0.0 |
0.0 |
15.9 |
1.3% |
DCF |
|
Gene therapy |
|
Neogene milestone payments[5] |
0.0 |
0.0 |
2.1 |
(0.1) |
2.0 |
0.2% |
DCF |
|
Cell therapy |
|
Syncona investments |
|
|
|
|
|
|
|
|
|
|
CRT Pioneer Fund |
32.8 |
0.1 |
0.1 |
0.0 |
33.0 |
2.7% |
Adj Third Party |
64.1% |
Oncology |
|
Biomodal[6] |
18.5 |
0.0 |
0.0 |
(0.6) |
17.9 |
1.4% |
PRI |
5.5% |
Epigenetics |
|
Forcefield |
2.5 |
0.0 |
0.0 |
0.0 |
2.5 |
0.2% |
Cost |
82.0%[7] |
Biologics |
|
Adaptimmune |
1.2 |
0.0 |
(0.2) |
0.0 |
1.0 |
0.1% |
Quoted |
0.8% |
Cell therapy |
|
Total Life Science Portfolio |
604.6 |
24.4 |
9.8 |
(10.1) |
628.7 |
50.6% |
|
|
|
|
|
|||||||||
|
Capital pool |
650.1 |
(34.2) |
1.9 |
(4.7) |
613.1 |
49.4% |
|
|
|
|
TOTAL |
1,254.7 |
(9.8) |
11.7 |
(14.8) |
1,241.8 |
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enquiries
Syncona Ltd
Annabel Clark / Fergus Witt
Tel: +44 (0) 20 3981 7940
FTI Consulting
Ben Atwell / Natalie Garland-Collins / Tim Stamper
Tel: +44 (0) 20 3727 1000
[1] Primary input to fair value
[2] The basis of valuation is stated to be "Cost", this means the primary input to fair value is capital invested (cost) which is then calibrated in accordance with our Valuation Policy
[3] The basis of valuation is stated to be "PRI", this means the primary input to fair value is price of recent investment which is then calibrated in accordance with our Valuation Policy
[4] Syncona's risk-adjusted and discounted valuation of the milestone payments from the sale of Gyroscope Therapeutics
[5] Syncona's risk-adjusted and discounted valuation of the milestone payments from the sale of Neogene Therapeutics
[6] Formerly CEGX
[7] Fully diluted ownership of Forcefield Therapeutics at 31 March 2023 has been amended to 82.0%, from previously announced figure of 93.2%