REG - Syncona Limited - First Quarter Update

SynconaAnnouncement

07/08/2025 07:00

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RNS Number : 3200U  Syncona Limited  07 August 2025

7 August 2025

 

Syncona Limited

("Syncona" or the "Company")

 

First Quarter Update

 

The SIML team continue to work in partnership with portfolio companies towards
delivering key value inflection points against challenging market conditions

 

Syncona Ltd, a leading life science investor, today announces its quarterly
update covering the period from 01 April to 30 June 2025.

 

Financial performance

 

·    Net assets of £1,045.4 million (31 March 2025: £1,053.1 million),
171.8p per share (31 March 2025: 170.9p per share), a NAV per share return of
0.5% in the quarter

·    Life science portfolio valued at £774.0 million (31 March 2025:
£765.4 million), a return of 1.0% in the quarter reflecting

o  Appreciation in Autolus' share price

o  Increase in valuation of Beacon's deferred consideration driven by
positive clinical progress and improved competitive environment

o  Negative foreign exchange movements

·    Capital pool of £271.4 million at 30 June 2025 with £6.6 million
deployed in the quarter

 

Maturing portfolio with strong strategic and clinical execution against
continuing challenging market conditions

 

·    Strong clinical execution across the portfolio with four capital
access milestones achieved, notably:

o  Beacon published Phase II Interim 6-month data from the DAWN trial in
X-linked retinitis pigmentosa (XLRP)

o  Resolution initiated its Phase I/II clinical trial for RTX001 in end stage
liver disease

·    Strategic and financial progress continues:

o  Quell achieved its second significant research milestone in its alliance
with AstraZeneca resulting in a second £10 million milestone payment

o  Mosaic in-licensed two clinical-stage oncology programmes, significantly
derisking and accelerating the company's development path

·    Post-period end, Purespring and OMass announced important milestones
in progressing towards clinical entry:

o  FDA Investigational New Drug application clearance for Purespring's Phase
I/II clinical trial for primary IgA nephropathy

o  Positive pre-clinical data for OMass' MC2 programme

 

Strategy update

 

·    Following the Company's strategy update on 19 June 2025, the Board
and the SIML team are engaging extensively with shareholders on the proposals
outlined in the announcement

·    Discussions between SIML and third parties regarding a new private
fund, offering exposure to new and early-stage life science companies, to be
managed by SIML, are ongoing

·    Syncona expects to update the market during September on progress
made with the proposals outlined in the strategy update

 

Melanie Gee, Chair of Syncona Limited, said: "I am very grateful to all those
stakeholders who have shared their perspectives on the strategic update, which
are important to us as we refine our proposals. The high regard for the SIML
team and the widespread acknowledgement of the important work the team do in
supporting UK life science has been very evident. We expect to update the
market on progress during September."

 

Chris Hollowood, CEO of Syncona Investment Management Limited, said: "Syncona
now has one commercial stage company, seven clinical-stage companies in the
portfolio and a further two expected to be clinical-stage over the next 12
months. We believe this portfolio is well positioned to deliver significant
upside as companies continue to deliver against the key value inflection
points, and we remain focused on unlocking value by guiding them to
late-stage. It is particularly exciting to see strong clinical progress at one
of our late-stage companies, Beacon, which reported positive clinical data in
its Phase II study. Although market conditions remain challenging across the
private and public markets, we were pleased to see the appreciation in
Autolus' share price and the company receive European Market authorisation for
AUCATZYL, which will enable the company to evaluate market entry opportunities
in EU countries. We look forward to working with our companies to deliver
further milestones in the coming months."

 

Portfolio continues to be funded to deliver 10 key value inflection points
over the next three years

 

The portfolio has 10 key value inflection points over the next three years
with the potential to drive significant NAV growth through M&A and
liquidity events but are not without risk. Syncona is funded to deliver on
these key value inflection points.

 

Milestones delivered in the quarter and post-period end:

 

 Portfolio company        Capital access milestone
 Autolus Therapeutics     Initial data from Phase I trial in SLE

 Beacon Therapeutics      Six-month data readout from the

                          Phase II DAWN trial in XLRP
 Spur Therapeutics        Initial safety readout in higher dose cohort from its Phase I/II trial in
                          adrenomyeloneuropathy (AMN)
 Resolution Therapeutics  Initiation of Phase I/II trial in end-stage liver disease

 

Life science portfolio valuations(( 1  (#_ftn1) ))

 

                                31 March 2025  Net investment in the period  Valuation  FX movement  30 June 2025  % of Group NAV  Valuation                Full diluted ownership stake ( 4 )  Focus area

                                                                             change                                                Basis( 1 ),( 2 ),( 3 )
                                (£m)           (£m)                          (£m)       (£m)         (£m)                                                   (%)
 Strategic portfolio companies
 On the market
 Autolus                         34.6           -                             15.6       (2.3)        47.9         4.6             Quoted                   9.9                                 Cell therapy
 Late-stage clinical
 Spur                           182.2          -                             1.3        -            183.5         17.6            Cost                     79.1                                Gene therapy
 Beacon                         117.5          6.6                           4.9        (7.5)        121.5         11.6            PRI                      43.9                                Gene therapy
 Clinical
 Quell                          85.4           -                             -          (5.0)        80.4          7.7             PRI                      33.7                                Cell therapy
 Resolution                     55.5           -                             0.2        -            55.7          5.3             Adjusted Cost            82.6                                Cell therapy
 Anaveon                        35.6           -                             -          1.7          37.3          3.6             PRI                      36.9                                Biologics
 Mosaic                         25.5           -                             -          -            25.5          2.4             Cost                     54.3                                Small molecules
 iOnctura                       25.1           -                             -          0.7          25.8          2.5             PRI                      21.9                                Small molecules
 Pre-clinical
 Purespring                     51.2           -                             -          -            51.2          4.9             PRI                      41.7                                Gene therapy
 OMass                          49.7           -                             -          -            49.7          4.8             PRI                      28.9                                Small molecules
 Kesmalea                       20.0           -                             -          -            20.0          1.9             Cost                     59.7                                Small molecules
 Yellowstone                    16.5           -                             -          -            16.5          1.6             Cost                     60.9                                Biologics
 Forcefield                     10.6           -                             -          -            10.6          1.0             PRI                      49.6                                Biologics
 Slingshot                      5.6            -                             -          -            5.6           0.5             Cost                     100.0                               Accelerator
 Portfolio milestone payments
 Neogene milestone payments     6.1            (6.0)                         -          (0.1)        0.0           0.0             -                        -                                   Cell therapy

 Clade milestone payment        0.8            -                             -          (0.1)        0.7           0.1             DCF                      -                                   Cell therapy
 Syncona investments
 CRT Pioneer Fund               27.3           -                             -          -            27.3          2.6             Adj Third Party          64.1                                Oncology
 Biomodal                       2.7            -                                        (0.2)        2.5           0.2             Adjusted PRI             5.5                                 Epigenetics
 Achilles                       13.1           -                             (0.5)      (0.8)        11.8          1.1             Expected Proceeds        22.7                                Cell therapy
 Century                        0.4            -                             0.1        -            0.5           0.0             Quoted                   1.3                                 Cell therapy
 Total Life Science Portfolio   765.4          0.6                           21.6       (13.6)       774.0         74.0

 Capital pool                   287.7          (14.9)                        2.0        (3.4)        271.4         26.0
 TOTAL                          1,053.1                                                              1,045.4       100.0

 

Enquiries

 

Syncona Ltd

 

Annabel Clark

Tel: +44 (0) 20 3981 7940

 

FTI Consulting

 

Ben Atwell / Natalie Garland-Collins / Tim Stamper

Tel: +44 (0) 20 3727 1000

 

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.

 

Syncona Limited seeks to achieve returns over the long term. Investors should
seek to ensure they understand the risks and opportunities of an investment in
Syncona Limited, including the information in our published documentation,
before investing.

 

 1  (#_ftnref1) Portfolio valuations reflect Syncona's total interest in a
company or investment

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