REG - Syncona Limited - Launch of share buyback programme

SynconaAnnouncement

29/09/2023 07:00

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RNS Number : 0851O  Syncona Limited  29 September 2023

 

Syncona Limited

 

Launch of share buyback programme

 

29 September 2023

 

Syncona Ltd, a leading healthcare company focused on creating, building and
scaling global leaders in life science, today announces that it is launching a
share buyback programme of up to £40.0 million.

 

Syncona's strategy is focused on delivering value for shareholders and its
core focus remains on allocating capital to portfolio companies' assets with
the potential to drive attractive risk-adjusted returns, reach late-stage
development and deliver near-term growth. Syncona now has seven clinical stage
companies (including two late-stage clinical companies), valued at £350.3
million 1 , with seven clinical data read-outs expected this financial year.

The Board believes that the current share price materially undervalues
Syncona's portfolio and its prospects and that the shares represent a
compelling and unique investment opportunity. The decision to launch a share
buyback programme has been taken as part of the Company's review of capital
allocation across the portfolio and pipeline, reflecting the material discount
to Net Asset Value (NAV) at which the shares are trading and the near-term NAV
per share accretion available. The capital allocated to the buyback does not
impact planned investment into clinical stage assets in the next 24 months.

Syncona's capital pool was £613.1 million at 30(th) June 2023. Since June,
Syncona has deployed £34.2 million, taking total deployment across the
portfolio in this financial year to £58.6 million 2 .The Company continues to
anticipate that deployment into the portfolio and pipeline at financial year
end will be £150-200 million, in line with prior guidance. This excludes the
£40.0 million of capital allocated to the share buyback.

Melanie Gee, Chair of Syncona, said: "The Board of Syncona has a high level of
confidence in our portfolio and its valuation - this is reflected in our
decision to commence a buyback. We believe that purchasing up to £40.0
million of shares allows us to strike the right balance between continuing to
focus capital allocation on our maturing portfolio and a share buyback given
the material discount to NAV at which the shares trade."

Chris Hollowood, CEO of Syncona Investment Management Limited, said: "The
funding environment for biotech companies continues to be challenging. The
Syncona team has been focused on our long-term ambition to deliver net assets
of £5 billion by 2032 and we are working closely with our companies to guide
their most promising assets to late-stage clinical development where we
believe significant value can be accessed. We believe that current market
conditions may also provide opportunities to allocate capital to clinical
stage assets outside the Syncona portfolio. We look forward to providing the
market with an update on the portfolio's progress and upcoming milestones at
our Interim Results."

 

Enquiries

 

Syncona Ltd

Annabel Clark

Tel: +44 (0) 7714 916615

 

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 healthcare
businesses, across development stage 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.

 

 

Copies of this press release and other corporate information can be found on
the company website at: www.synconaltd.com (http://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.

 

 1  As at 30 June 2023

 2  As at 28 September 2023

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