REG - Syncona Limited - Update on Gyroscope

SynconaAnnouncement

11/09/2023 07:00

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RNS Number : 9353L  Syncona Limited  11 September 2023

Syncona Limited

 

Update on Gyroscope and associated milestone payments

 

11 September 2023

 

Syncona Ltd, a leading healthcare company focused on creating, building and
scaling global leaders in life science, has been informed by Novartis, a
leading global medicines company, that the development of GT005 (previously
the lead asset at Gyroscope Holdings Limited) in Geographic Atrophy (GA)
secondary to dry age-related macular degeneration (AMD) is to be discontinued.

 

Their decision was based on a recommendation from the Independent Data
Monitoring Committee following an overall benefit risk assessment of available
data from the programme studies, which concluded that overall data from the
lead Phase II HORIZON study did not support continuation of the development
programme.

 

Novartis has been responsible for the development of GT005 since completing
the acquisition of Gyroscope from Syncona in February 2022. Syncona received
upfront cash proceeds of $442 million (£326 million) for its holding in
Gyroscope, from a total upfront cash consideration of $800 million (£587
million), which resulted in a 2.9 multiple of cost and 50% IRR. Syncona was
also eligible for a series of further milestone payments in the event of
successful clinical development and commercialisation. As at 30 June 2023,
Syncona valued these potential milestone payments 1  (#_ftn1) , the "Gyroscope
milestone payments" at £54.5 million.

 

The decision taken by Novartis to stop development of GT005 will result in the
Gyroscope milestone payments being written-off resulting in a negative £54.5
million valuation impact.

 

Chris Hollowood, CEO of Syncona Investment Management Limited, said: "We are
naturally disappointed for patients following the decision to discontinue
GT005, but we respect Novartis' decision. We remain focussed on our strategy
of building and maintaining our portfolio of companies providing significant
opportunities to deliver strong risk-adjusted returns to our shareholders and
to make a difference to the lives of patients with devastating diseases."

 

 ENDS 

 

Enquiries

 

Syncona Ltd

Annabel Clark / Fergus Witt

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.

 

This announcement includes information that is or may be inside information.
The person responsible for arranging for the release of this announcement on
behalf of Syncona Ltd is Andrew Cossar, General Counsel, SIML.

 

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.

 1  (#_ftnref1) Risk-adjusted and discounted valuation

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