TIDMSYNC
RNS Number : 5673V
Syncona Limited
10 August 2020
Quarterly Update
Significant clinical, financial and personnel milestones
demonstrate strong value progression
10 August 2020
Syncona Ltd, a leading healthcare company focused on founding,
building and funding a portfolio of global leaders in life science,
today issues its quarterly update covering the period from 31 March
2020 to 30 June 2020.
Life science portfolio increases in value by 35% since year
end:
-- Net assets of GBP1,414.9 million, 210.7 p per share, a NAV
return of 13.5 per cent in the period
-- Life science portfolio valued at GBP677.0 million as at 30
June 2020, a return of 35.1 per cent in the period, with
performance driven by the increase in the Autolus Therapeutics
(Autolus) share price and the write-up of Freeline Therapeutics
(Freeline) in its recent Series C financing
-- Capital base of GBP737.9 million as at 30 June 2020; GBP29.2
million of capital deployed in the quarter
Strong clinical progress with significant data generation and
new programmes initiated
-- Autolus reported positive data across its pipeline of programmes:
- AUTO1 adult acute lymphoblastic leukaemia (ALL) data, reported
at the European Haematology conference, confirmed a positive safety
profile and showed encouraging durability; supporting the thesis
this therapy could be stand-alone treatment. Autolus has now
progressed the programme to a pivotal study, AUTO1-AL1
- AUTO3 diffuse large B-cell lymphoma (DLBCL) data, reported at
the American Society of Clinical Oncology conference, showed good
efficacy and safety with early signs of durability
- In AUTO 3 DLBCL, the business initiated an outpatient cohort
which would expand the total addressable patient population
- Presented pre-clinical data in its AUTO5, AUTO6NG and AUTO7
programmes
-- Achilles Therapeutics (Achilles) dosed the first patients in
its melanoma and non-small cell lung cancer (NSCLC) studies;
demonstrating the capability to manufacture an entirely
personalised T cell therapy
-- Anaveon and Quell Therapeutics (Quell) nominated clinical candidates for lead programmes
-- Post period end, Freeline presented further encouraging data
from its FLT180a, Haemophilia B study at the International Society
on Thrombosis and Haemostasis (ISTH) 2020 Congress
- The data demonstrated the potential of the therapy to deliver
sustained Factor IX (FIX) activity levels in the normal range
- Freeline believes that a dose above 7.5x10(11) up to and
including 9.75x10(11) has the potential to create sustained FIX
activity levels in the normal range in patients with severe
Haemophilia B
- The data supports progression to a Phase 3 pivotal study
-- Clinical trials across the portfolio are resuming or
continuing where possible following short delays caused by the
COVID-19 pandemic; whilst the duration and impact of the pandemic
remains uncertain, these delays are not currently expected to
impact critical pathways or valuations of the portfolio
companies
As Freeline scales, company secures significant funding; post
period end lists on NASDAQ
-- Freeline raised $80 million from specialist global
institutional investors, led by Novo Holding A/S, Eventide Asset
Management and Wellington Management Company, in an expanded $120m
Series C financing in June
-- Syncona was the largest investor in the financing; $40
million Series C investment from Syncona in December 2019;
Syncona's holding in Freeline written up by GBP29.9 million to
GBP180.6 million at 30 June 2020
-- Post period end, Freeline carried out an initial public
offering ("IPO") on NASDAQ raising total gross proceeds of
approximately $158.8 million (GBP120.8 million)
-- Syncona has agreed to invest $24.3 million (GBP18.5 million)
in the IPO; following the IPO Syncona will retain a 49 per cent
stake [1] in Freeline valued at GBP257.7 million [2] , including a
valuation increase of GBP57.7 million to the Series C valuation
(reported 30 June 2020)
-- This funding will enable Freeline to progress its lead
programme in Haemophilia B to a pivotal study, complete dose
escalation in its second programme in Fabry disease when the study
restarts and continue to develop its robust manufacturing
platform
Building and deepening an expert team
-- Kemal Malik appointed as Non-Executive Director of Syncona
Ltd bringing 30 years of experience in global pharmaceutical
research and development (formerly Head of Global Development and
Chief Medical Officer at Bayer Healthcare)
-- Strong appointees across the portfolio:
- Achilles appointed Carsten Boess to its Board, who brings 30
years of experience including senior roles at Synageva, Kiniksa and
Novo Nordisk
- Quell appointed two new directors to its Board: seasoned
industry expert, Dr Dhaval Patel, Chief Scientific Officer UCB, and
Professor Sir Robert Lechler, Senior Vice President/Provost
(Health) and Executive Director of King's Health Partners Academic
Health Sciences Centre
- SwanBio Therapeutics appointed Steven Zelenkofske, D.O., M.S.
as Chief Medical Officer (CMO), who brings more than 20 years'
experience in clinical development (formerly CMO at Achillion and
uniQure)
- Gyroscope Therapeutics announced the appointment of leading
experts in retinal disease, gene therapy and the complement system
to its Clinical and Scientific Advisory Boards
A new macrophage cell therapy opportunity
Despite the disruptions caused by the COVID-19 pandemic, Syncona
is still looking to invest in new opportunities. The team have
completed due diligence on an opportunity derived from a
collaboration agreement with the University of Edinburgh based on
highly innovative research into therapeutic uses of macrophages for
the treatment of patients with end stage liver disease by world
class founder, Professor Stuart Forbes. Since 2018, Syncona has
funded this research with a small seed investment of GBP1.4
million.
In the coming weeks, Syncona expects to make a further
investment to fund the development of a team and to secure key IP
with a view to providing significant funding to the business when
the COVID-19 pandemic and the corresponding restrictions have
substantially stabilised, and operations will be able to commence
.
Martin Murphy, CEO, Syncona Investment Management Limited, said:
"The effects of COVID-19 have had a profound impact on society and
the way we work. It is too early to assess its long-term impact,
but against this unprecedented backdrop, Syncona has performed
robustly and the value of developing long term clinical solutions
has never been clearer. Our strong cash position and high calibre
team, which we have enhanced during the quarter, continue to
deliver and we are developing a pipeline of opportunities even as
restrictions on travel and working practices remain.
We have demonstrated strong value progression for our
shareholders in the first quarter, with a 35% increase in the value
of our life sciences portfolio. Across our portfolio, we were
pleased to see positive clinical data generation and the
appointment of world-class leaders with the expertise to drive the
continued development of innovative products.
Our strong capital base underpins our approach to pursue
exciting new opportunities and continue to fund our companies,
which are scaling rapidly. We believe our companies are well placed
to execute on strategy and we will continue to maintain a
disciplined approach to the allocation of capital across our
portfolio to maximise risk-adjusted returns for shareholders."
Life science portfolio valuation table:
Company 31 Mar Net Valuation FX 30 % NAV Valuation Fully Focus area
2020 investment change movement June basis diluted
Value period (GBPm) (GBPm) 2020 ([3]) Ownership
(GBPm) (GBPm) value stake
(GBPm) %
Life science portfolio companies
Clinical
206.3
Autolus 77.0 - 129.1 0.2 [4] 14.6 Quoted 27 Cell therapy
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
180.6
Freeline 150.7 - 30.6 -0.7 [5] 12.8 PRI 60 Gene therapy
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Gyroscope 73.0 - - - 73.0 5.2 Cost 80 Gene therapy
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Achilles 72.4 - - - 72.4 5.1 PRI 44 Cell therapy
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Pre-clinical
34.4
SwanBio 18.5 15.8 - 0.1 [6] 2.4 Cost 79 Gene therapy
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
12.5
Anaveon 12.3 - - 0.2 [7] 0.9 Cost 51 Immuno-oncology
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Quell 8.3 11.6 - - 19.9 1.4 Cost 69 Cell therapy
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Azeria 6.5 - - - 6.5 0.5 Cost 60 Small molecule
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Drug discovery
OMass 14.6 - - - 14.6 1.0 Cost 49 Therapeutics
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Life Science Investments [8]
CRT Pioneer Adj Third
Fund 40.0 1.8 - - 41.8 2.9 Party 64
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Adj.
CEGX 1.5 - - - 1.5 0.1 PRI 9
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
12.1
Adaptimmune 3.3 - 8.8 - [9] 0.9 Quoted 0.2
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Syncona
Collaborations 1.4 - - - 1.4 0.1 Cost 100
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
Total 479.5 29.2 168.5 -0.2 677.0 47.9
------- ----------- ---------- --------- ------- ------ ---------- ---------- ----------------
[ENDS]
Enquiries
Syncona Ltd
Annabel Clay
Tel: +44 (0) 20 3981 7940
FTI Consulting
Ben Atwell / Natalie Garland-Collins / Tim Stamper
Tel: +44 (0) 20 3727 1000
Copies of this press release 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.
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.
[1] Fully diluted
[2] At IPO share price ($18 per Freeline share) and exchange
rates as at 6 August 2020
[3] Primary input to fair value
[4] Exchange rates as at 30 June 2020; with Autolus share price
at $16 at 30 June 2020
[5] See footnote 4
[6] See footnote 4
[7] See footnote 4
[8] Investments where Syncona has a minority ownership position
or in the case of CRT Pioneer Fund is a Life Science LP fund
[9] See footnote 4
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END
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