REG - Syncona Limited - First Quarter Update
10/08/2023 07:00
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RNS Number : 8491I Syncona Limited 10 August 2023
Syncona Limited
First Quarter Update
Continued progress and active management of maturing portfolio as late-stage
companies approach key milestones
10 August 2023
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."
Financial performance
· 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 (Autolus)
· £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 for highly innovative
platform
· Quell Therapeutics (Quell) entered 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
o Quell will receive $85 million upfront which comprises a predominant cash
payment and equity investment, plus potential payments of over $2 billion
contingent on development and commercial milestones, plus tiered royalties.
Quell will retain full rights to its lead QEL-001 programme in liver
transplantation
Positive clinical and operational progress across portfolio with seven
clinical-stage companies
Late-stage clinical company progress
· Autolus announced positive data updates across its portfolio of
candidates including in its lead programme, obe-cel in relapsed/refractory
(r/r) adult B-Cell acute lymphoblastic leukaemia (B-ALL), as it approaches a
Biologics License Application (BLA) filing with the FDA in H2 CY2023
· Beacon Therapeutics (Beacon) continues to progress the clinical
strategy for its pivotal Phase II/III VISTA trial in X-linked retinitis
pigmentosa (XLRP) having demonstrated meaningful efficacy and a good safety
profile in the recent Phase I/II HORIZON trial
Clinical company progress
· Freeline Therapeutics (Freeline) dosed its first patient with
FLT201, its novel gene therapy candidate for Gaucher disease
· SwanBio Therapeutics (SwanBio) dosed two patients in its Phase
I/II trial of its SBT101 gene therapy in adrenomyeloneuropathy (AMN)
· Anaveon has continued to progress its lead asset AN419 across its
Phase I/II trial in metastatic melanoma, alongside its Phase I/II dose-finding
trial in multiple solid tumour types
o Additionally, the company has halted development of a separate Phase I/II
trial in multiple myeloma for strategic reasons
Key upcoming milestones in FY2023/4
Late-stage clinical companies
· Autolus expects to:
o 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
o Publish initial data from the trial of AUTO8, Autolus' next-generation
product candidate for multiple myeloma, in H2 CY2023
o 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:
o Announce further data from its Phase I/II dose finding trial of ANV419 in
solid tumours in H2 CY2023
o 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 Net investment in the period Valuation FX movement 30 Jun 2023 % of Group NAV Valuation Fully diluted owner-ship stake Focus area
31 Mar 2023 change basis 1 (,) 2 (,) 3
(£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 (#_ftn4) 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 (#_ftn5) 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 (#_ftn6) 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
About Syncona
Syncona's purpose is to invest to extend and enhance human life. We do this by
creating and building companies to deliver transformational treatments to
patients in areas of high unmet need.
Our strategy is to create, build and scale companies around exceptional
science to create a diversified portfolio of 20-25 globally leading life
science businesses, across development stage, modality and therapeutic areas,
for the benefit of all our stakeholders. We focus on developing treatments for
patients by working in close partnership with world-class academic founders
and management teams. Our balance sheet underpins our strategy enabling us to
take a long-term view as we look to improve the lives of patients with no or
poor treatment options, build sustainable life science companies and deliver
strong risk-adjusted returns to shareholders.
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.
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%
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