13 August 2024
Syncona
Limited
First Quarter
Update
Strong clinical execution
across a maturing portfolio that continues to attract significant
external capital
Syncona Ltd, (the "Company"), a
leading life science investor 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 2024.
Chris Hollowood, CEO of Syncona Investment Management Limited,
said: "Our companies continue to
execute on their clinical strategies and have attracted substantial
investment from external partners in the quarter, with Beacon and
Forcefield raising capital from high-quality investors. Despite
both financings contributing positively to performance, these
uplifts have been offset by declines in value from our quoted
holdings, which have weighed on the overall life science portfolio
return.
With Anaveon entering the clinic we
now have six clinical-stage companies in our strategic portfolio of
13 companies. We are pleased with the positive momentum across the
portfolio and are particularly encouraged to see Beacon treat the
first patient in its Phase II/III registrational trial in XLRP,
from which data would form the basis of a potential regulatory
filing. The work we have undertaken to rebalance, diversify and
de-risk the portfolio means a significant amount of value is now in
clinical-stage assets, and we continue to focus on allocating
capital to these opportunities and those approaching clinical
entry. All of this provides us with a platform for future growth
and we are excited about the opportunity ahead, with Syncona well
placed to deliver long-term returns for our shareholders and
transformational treatments for patients."
Financial performance in the quarter
·
Net assets of £1,160.4 million (31 March 2024:
£1,238.9 million), 179.4p per share (31 March 2024: 188.7p per
share), a NAV per share return of (4.9)%
o Performance predominantly driven by a decrease in Autolus'
share price, partially offset by valuation uplifts in Beacon and
Forcefield, alongside a positive return from the capital pool and
accretive share buybacks
·
Life science portfolio valued at £739.0 million
(31 March 2024: £786.1 million), a return of (8.3)%
·
Capital pool of £421.4 million at 30 June 2024 (31
March 2024: £452.8 million)
o £23.3 million deployed into the life science
portfolio
·
£11.0 million invested into the share buyback
programme in the quarter
o 9.6
million shares repurchased in the share buyback during the quarter
at an average 38.1% discount to NAV resulting in an accretion of
0.94p to NAV per share[1]
Maturing strategic portfolio[2]
continues to attract significant external
investment
·
Roche Venture Fund committed £10.0 million to
Forcefield's Series A
financing, alongside Syncona's commitment of £20.0
million
o Syncona's holding was written up by £2.4 million (0.38p per
share); a 37.6 per cent uplift to the 31 March 2024 valuation of
the company
·
Post-period end Beacon raised $170 million in a Series
B financing, with Syncona committing $42.5 million (£33.5 million)
in a round led by Forbion, alongside a leading global
syndicate
o Syncona's holding was written up by £14.3 million (2.2p per
share); a 17.9 per cent uplift to the 31 March 2024 valuation of
the company[3]
·
Completion of the sale of Clade
to Century Therapeutics for up to $45.0 million
(£35.9 million), with upfront consideration to Syncona of $9.3
million (£7.4 million)
Increased allocation to share buyback
programme
·
The Board of Syncona continues to view the current
share price as a compelling investment opportunity given the
potential value within our portfolio
·
As announced in our FY2023/4 Annual Results in
June, a further £20.0 million has been allocated to the share
buyback programme taking the total allocation to £60.0
million
·
Since the commencement of the share buyback, a
total of £35.4 million has been deployed to repurchase a total of
29.4 million shares, at an average discount of 33.4%[4]
Strong clinical execution from our rebalanced and diversified
portfolio, where 72% of strategic portfolio value is in our six
clinical-stage companies
Moving towards being on the market
·
Autolus presented positive
longer-term follow-up and additional data from the pivotal Phase
Ib/II FELIX study of obe-cel in relapsed/refractory (r/r) adult
B-cell acute lymphoblastic leukaemia (ALL) at the American Society
of Clinical Oncology (ASCO) Annual Meeting. The company also had
its Marketing Authorisation Application (MAA) accepted by the
European Medicines Agency (EMA) for obe-cel
·
Beacon treated its first
patient in the Phase II/III registrational VISTA
trial[5], which
will further assess the effect of AGTC-501 on vision and other
symptoms of X-Linked Retinitis Pigmentosa (XLRP)
Moving towards publishing definitive data
·
Resolution presented further
data at the EASL Congress from its academic study (MATCH II) which
supports the significant potential of macrophage cell therapy
treatment for end-stage liver disease. The company also received
approval from the UK Medicines and Healthcare products Regulatory
Agency (MHRA) to commence the Phase I/II EMERALD study for its lead
candidate RTX001, with this study expected to initiate in H2
CY2024
·
Post-period end Spur
completed enrolment in its Phase I/II trial in
Gaucher disease and selected a single low dose infusion of FLT201
for its Phase III trial, expected to start in CY2025
o The
dose selection was based on encouraging data which demonstrated
compelling efficacy signals, alongside a favourable safety and
tolerability profile
o Spur
also published data from its Parkinson's disease research
programme, the company's first pipeline expansion into more
prevalent chronic debilitating diseases
·
Post-period end iOnctura
expanded its clinical trial programme for its lead
pipeline asset, roginolisib, to non-small cell lung cancer, via
clinical collaboration agreements with the ETOP IBCSG Partners
Foundation and GSK
Moving towards publishing emerging efficacy
data
·
Quell presented positive safety
data from is study of QEL-001 in liver transplant patients and is
advancing the therapy's development into the efficacy cohort of the
LIBERATE Phase I/II trial
·
Post-period end Anaveon
entered the clinic with its Phase I/II trial of
ANV600, the company's next generation compound, in line with prior
guidance
Outlook
Capital
deployment
Syncona continues to anticipate that
deployment into the portfolio and pipeline in the financial year to
31 March 2025 will be £150-200 million. This excludes the capital
allocated to the share buyback programme.
Upcoming capital access
milestones and potential key value inflection
points
As we build and scale our companies,
there are opportunities to deliver milestones that drive access to
capital (capital access milestones) and milestones that we believe
have the potential to drive significant NAV growth (key value
inflection points[6]).
·
10 capital access milestones across the
portfolio by the end of CY2026, with eight
expected by the end of CY2025
·
Eight key value inflection points by the end of
CY2026, each of which has the potential to drive significant NAV
growth, including two before the end of CY2024. Syncona is funded
to deliver on all of the portfolio's potential key value inflection
points
· These
capital access milestones and key value inflection points are not
without risk
Updates to milestones since FY2023/4 Annual
Results
·
Anaveon initiated its Phase I/II trial of ANV600,
a potential capital access milestone
·
There have been no other milestone changes since
the Annual Results announcement
Strategic life science portfolio company
|
Next expected capital access milestones
|
Syncona team view of potential key value inflection
points
|
Moving towards being on the market
|
Autolus
|
H2 CY2024
-
Initial data from Phase I trial in SLE
H2 CY2024
-
Commence the US commercial launch of obe-cel,
dependent on anticipated FDA regulatory approval in
November
|
CY2025
-
Commercial traction following US launch of
obe-cel, dependent on FDA regulatory approval
|
Beacon
|
CY2025
-
Initial data from its Phase II DAWN trial in
XLRP
|
H2 CY2024
-
24-month data from its Phase II SKYLINE trial in
XLRP
CY2026
-
Data readout from its Phase II/III registrational
VISTA trial in XLRP
|
Moving towards publishing definitive data
|
iOnctura
|
CY2024
-
Initiation of Phase II trial in uveal
melanoma
|
CY2026
-
Data readout from its Phase II trial in uveal
melanoma
|
Spur
|
H2 CY2024
-
Select development candidate for GBA1 Parkinson's
disease programme
H1 CY2025
-
Initial safety readout in higher dose cohort from
its Phase I/II trial in AMN
CY2025
-
Initiation of Phase III trial in Gaucher
disease
|
H2 CY2024
-
Data readout from its Phase I/II trial in Gaucher
disease
|
Resolution
|
H2 CY2024
-
Initiation of Phase I/II trial in end stage liver
disease
|
CY2026
-
Data readout from its Phase I/II trial in end
stage liver disease
|
Moving towards publishing emerging efficacy
data
|
Quell
|
|
CY2025
-
Data readout from its Phase I/II trial in liver
transplantation
|
Anaveon
|
|
CY2026
-
Data readout from its Phase I/II trial of its next
generation asset ANV600
|
Purespring
|
CY2026
-
Initiation of Phase I/II trial in complement
mediated kidney disease
|
|
OMass
|
CY2026
-
Initiation of Phase I trial of its MC2
programme
|
|
Valuation movements in the quarter
Company
|
31 Mar 2024
|
Net investment in the
period
|
Valuation
change
|
FX movement
|
30 Jun 2024
|
% of Group
NAV
|
Valuation
basis[7],[8],[9]
|
Fully diluted owner-ship
stake
|
Focus area
|
|
(£m)
|
(£m)
|
(£m)
|
(£m)
|
(£m)
|
|
|
(%)
|
|
Strategic portfolio
companies
|
|
|
|
|
|
|
|
|
|
Late-stage
clinical
|
|
|
|
|
|
|
|
|
|
Beacon
|
80.3
|
5.3
|
14.3
|
-
|
99.9
|
8.6%
|
PRI
|
65.3%
|
Gene therapy
|
Autolus
|
169.5
|
-
|
(76.7)
|
(0.5)
|
92.3
|
8.0%
|
Quoted
|
12.6%
|
Cell therapy
|
Clinical
|
|
|
|
|
|
|
|
|
|
Spur
|
135.6
|
0.8
|
0.4
|
-
|
136.8
|
11.8%
|
Cost
|
78.1%
|
Gene therapy
|
Quell
|
84.7
|
-
|
-
|
(0.1)
|
84.6
|
7.3%
|
PRI
|
33.7%
|
Cell therapy
|
Anaveon
|
35.7
|
-
|
-
|
0.1
|
35.8
|
3.1%
|
PRI
|
36.9%
|
Biologics
|
iOnctura
|
25.6
|
-
|
-
|
(0.2)
|
25.4
|
2.2%
|
Cost
|
23.0%
|
Small molecules
|
Pre-clinical
|
|
|
|
|
|
|
|
|
|
Resolution
|
50.0
|
-
|
0.2
|
-
|
50.2
|
4.3%
|
Cost
|
81.6%
|
Cell therapy
|
Purespring
|
45.3
|
-
|
0.2
|
-
|
45.5
|
3.9%
|
Cost
|
77.1%
|
Gene therapy
|
OMass
|
43.7
|
-
|
-
|
-
|
43.7
|
3.8%
|
PRI
|
32.7%
|
Small molecules
|
Yellowstone
|
1.0
|
15.5
|
-
|
-
|
16.5
|
1.4%
|
Cost
|
57.7%
|
Biologics
|
Kesmalea
|
12.0
|
-
|
-
|
-
|
12.0
|
1.0%
|
Cost
|
62.2%
|
Small molecules
|
Forcefield
|
6.5
|
1.7
|
2.4
|
-
|
10.6
|
0.9%
|
PRI
|
62.6%
|
Biologics
|
Mosaic
|
7.3
|
-
|
-
|
-
|
7.3
|
0.6%
|
Cost
|
52.4%
|
Small molecules
|
Portfolio milestones and
deferred consideration
|
|
|
|
|
|
|
|
|
|
Beacon deferred
consideration
|
14.4
|
-
|
0.4
|
-
|
14.8
|
1.3%
|
DCF
|
-
|
Gene therapy
|
Neogene milestone payment
|
2.2
|
-
|
0.1
|
-
|
2.3
|
0.2%
|
DCF
|
-
|
Cell therapy
|
Clade milestone payment
|
0.0
|
0.7
|
-
|
-
|
0.7
|
0.1%
|
DCF
|
-
|
Cell therapy
|
Syncona
investments
|
|
|
|
|
|
|
|
|
|
CRT Pioneer Fund
|
33.9
|
(0.9)
|
-
|
-
|
33.0
|
2.8%
|
Adj Third
Party
|
64.1%
|
Oncology
|
Biomodal
|
18.0
|
-
|
-
|
-
|
18.0
|
1.6%
|
PRI
|
5.5%
|
Epigenetics
|
Achilles
|
11.0
|
-
|
(3.8)
|
(0.1)
|
7.1
|
0.6%
|
Quoted
|
24.5%
|
Cell
therapy
|
Century[10]
|
0.0
|
4.3
|
(1.8)
|
-
|
2.5
|
0.2%
|
Quoted
|
1.4%
|
Cell
therapy
|
Clade
|
9.4
|
(9.4)
|
-
|
-
|
0.0
|
0.0%
|
Sold
|
-
|
Cell
therapy
|
Total Life Science Portfolio
|
786.1
|
18.0
|
(64.3)
|
(0.8)
|
739.0
|
63.7%
|
|
|
|
|
Capital pool
|
452.8
|
|
|
|
421.4
|
36.3%
|
|
|
|
TOTAL
|
1,238.9
|
|
|
|
1,160.4
|
100%
|
|
|
|
Enquiries
Syncona Ltd
Natalie Garland-Collins / Fergus
Witt
Tel: +44 (0) 20 3981 7940
FTI
Consulting
Ben Atwell / 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, building and
scaling companies to deliver transformational treatments to
patients in areas of high unmet need.
We aim to build and maintain a
diversified portfolio of 20-25 globally leading life science
businesses, across development stage, modality and therapeutic
area, for the benefit of all our stakeholders. We focus on
developing treatments that deliver patient impact by working in
close partnership with world-class academic founders and
experienced 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.
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.