6 February 2025
Syncona
Limited
Third Quarter
Update
Continued focus on portfolio
execution and delivering strong risk adjusted returns to
shareholders
Syncona Ltd ("Syncona"), a leading
life science investor focused on creating, building and scaling a
portfolio of global leaders in life science, today issues its
quarterly update covering the period from 01 October to 31 December
2024.
Financial performance
·
Net assets of £1,124.4 million (30 September 2024:
£1,144.6 million), 179.4p per share (30 September 2024: 178.9p per
share), a NAV per share return of 0.3% in the quarter
·
Life science portfolio valued at £779.6 million
(30 September 2024: £791.9 million), a return of (0.7)% in the
quarter, with performance predominantly driven by a decrease in Autolus' share
price, partially offset by positive foreign exchange
movements
·
Over the nine months to 31 December 2024, NAV per
share has returned (4.9)% with the life science portfolio
generating a return of (9.5)%
·
As previously announced, Syncona partially
realised its holding in Autolus, at an average price of
$4.50
o Generated proceeds of £6.6 million in the quarter taking total
realised proceeds to £16.3 million
o Syncona retains a 9.9% fully diluted ownership stake in
Autolus
·
Capital pool of £344.8 million at 31 December 2024
(30 September 2024: £352.7 million)
Rebalanced, maturing portfolio with robust fundamentals and
strong execution in the quarter
·
The Syncona Investment Management Limited (SIML)
team are focused on executing on unlocking the substantial latent
value that is built into the portfolio
·
As expected, three key value inflection points
with the potential to drive significant NAV growth over time have
been delivered by our later stage companies in the
quarter
o Positive 24-month data from Beacon's Phase II SKYLINE
trial
o Encouraging three-month safety and efficacy data from Beacon's
Phase II DAWN study
o Spur
published data from its Phase I/II trial in Gaucher disease which
reinforces the potential of its FLT201 therapy. Further
confirmatory data from the trial was released post-period
end
·
New clinical data published by iOnctura, showing
early positive results which support the initiation of a Phase II
trial in uveal melanoma for its lead asset roginolisib
·
Post-period end Spur announced it had held a
successful end-of-Phase II meeting with the FDA, supporting the
upcoming initiation of the Phase III trial in Gaucher
disease
·
Our maturing portfolio expects to deliver two key
value inflection points by the end of CY2025, with a further five
expected before the end of CY2027
Disciplined capital allocation and deployment; a further £15.0
million allocated to share buybacks following the partial
realisation of Autolus
·
Reflecting successful financing rounds with
external investors, capital deployment into the life science
portfolio for this financial year is expected to be below or at the
lower end of our guidance of £150.0 million to £200.0
million
·
£90.0 million of capital deployed in the nine
months to 31 December 2024, with no capital deployed into the
strategic portfolio during the third quarter
·
In the financial year to date £310.6 million has
been raised across seven financings, including £175.5 million from
leading external life science investors[1]
·
Following the partial realisation of Autolus, an
additional £15.0 million was allocated to the share buyback in
November 2024 taking total allocated to the share buyback to £75.0
million
-
£13.7 million shares repurchased in the share
buyback during the quarter at an average 41% discount to NAV
resulting in an accretion of 1.49p to NAV per share[2]
Melanie Gee, Chair of Syncona Limited,
commented: "The Board remains
frustrated by the share price performance and widening discount to
NAV. The fundamentals of the portfolio are robust given the
rebalancing to later stage companies and the number of recent
financings supported by third party investors that externally
validate the valuation of these portfolio companies. The Board is
confident that the portfolio is well placed to deliver strong risk
adjusted returns over time. Nonetheless given challenging broader
market conditions and headwinds in the investment companies'
sector, the Board together with SIML will continue to review
options to maximise value for shareholders over the medium
term."
Chris Hollowood, CEO of Syncona Investment Management Limited,
added: "The volatility in the
Autolus share price has continued to weigh on performance in the
quarter, despite its FDA approval for AUCATZYL in November
2024.
There has been continued strong
execution elsewhere in our maturing portfolio and we are pleased to
see three key value inflection points delivered from Beacon and
Spur. These de-risking events validate the progress of these
companies towards delivering their future potential. We believe
there is substantial latent value in the portfolio and with an
improving macro environment for biotech, we are confident and
excited by the value and impact we can deliver by the end of
2027."
Milestones delivered in the quarter and post-period
end:
|
Strategic life science portfolio company
|
Capital access milestones
|
Key
value inflection points
|
|
Beacon
|
|
24-month data from its
Phase II SKYLINE trial in
XLRP
Three-month data readout from the
Phase II DAWN trial in XLRP
|
|
Spur
|
Select development candidate for
GBA1 Parkinson's disease programme
Additional data readout from its
Phase I/II trial in Gaucher disease (post-period end)
|
Data readout from its Phase I/II
trial in Gaucher disease
|
Upcoming capital access
milestones and potential key value inflection
points
As Syncona builds and scales its
portfolio, there are opportunities to deliver milestones that
primarily drive access to capital (capital access milestones), and
milestones that have the potential to drive significant NAV growth
(key value inflection points)[3].
·
Seven key value inflection points expected by the
end of CY2027, including two expected before the end of CY2025.
These have the potential to drive significant NAV growth. Syncona
is funded to deliver on all of the portfolio's key value inflection
points
·
Nine capital access milestones across the
portfolio expected by the end of CY2026, with seven expected by the
end of CY2025
·
These capital access milestones and key value
inflection points are not without risk
|
Strategic life science portfolio company
|
Next expected capital access milestones
|
Syncona team view of expected key value inflection
points
|
|
On
the market
|
|
Autolus
|
H1 CY2025
- Initial data from Phase I trial in SLE[4]
|
CY2025
- Commercial traction following US launch of
AUCATZYL® (obe-cel), after FDA approval
|
|
Moving towards being on the market
|
|
Beacon
|
H1 CY2025 (new)
- Six-month data readout from the Phase II DAWN trial in
XLRP
|
CY2026
- Data
readout from its Phase II/III pivotal VISTA trial in
XLRP
|
|
Moving towards publishing definitive data
|
|
iOnctura
|
H1 CY2025 (delayed from H2 CY2024)
- Initiation of Phase II trial in uveal melanoma
|
CY2026
- Data
readout from its Phase II trial in uveal melanoma
|
|
Spur
|
H1 CY2025
- Initial safety readout in higher dose cohort from its Phase
I/II trial in AMN
H2 CY2025
- Initiation of Phase III trial in Gaucher disease
CY2026 (new)
- Initiation of Phase I/II trial in Parkinson's
disease
|
CY2027
- Completion of the pivotal stage of its Phase III trial in
Gaucher disease
|
|
Resolution
|
H1 CY2025 (delayed from 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 ANV600
|
|
Purespring
|
CY2026
- Initiation of Phase I/II trial in complement-mediated kidney
disease
|
|
|
OMass
|
H2 CY2025 (updated from CY2026)
- Initiation of Phase I trial of its MC2 programme
|
|
Life science portfolio valuations[5]
|
|
30 Sep 2024
|
Net investment in the
period
|
Valuation
change
|
FX movement
|
31 Dec 2024
|
% of Group
NAV
|
Valuation
Basis[6],[7],[8]
|
Fully diluted owner-ship
stake[9]
|
Focus area
|
|
|
(£m)
|
(£m)
|
(£m)
|
(£m)
|
(£m)
|
|
|
(%)
|
|
|
Strategic portfolio
companies
|
|
|
|
|
|
|
|
|
|
|
On the
market
|
|
|
|
|
|
|
|
|
|
|
Autolus
|
83.4
|
(6.6)
|
(27.4)
|
4.7
|
54.1
|
4.8
|
Quoted
|
9.9
|
Cell
therapy
|
|
Late-stage
clinical
|
|
|
|
|
|
|
|
|
|
|
Beacon
|
113.0
|
-
|
0.4
|
7.8
|
121.2
|
10.8
|
PRI
|
41.5
|
Gene
therapy
|
|
Clinical
|
|
|
|
|
|
|
|
|
|
|
Spur
|
157.5
|
-
|
0.8
|
-
|
158.3
|
14.1
|
Cost
|
82.9
|
Gene
therapy
|
|
Quell
|
80.0
|
-
|
-
|
5.5
|
85.5
|
7.6
|
PRI
|
33.7
|
Cell
therapy
|
|
Anaveon
|
35.9
|
-
|
-
|
(0.1)
|
35.8
|
3.2
|
PRI
|
36.9
|
Biologics
|
|
iOnctura
|
25.0
|
-
|
-
|
(0.2)
|
24.8
|
2.2
|
PRI
|
21.9
|
Small
molecules
|
|
Pre-clinical
|
|
|
|
|
|
|
|
|
|
|
Resolution
|
63.6
|
-
|
-
|
-
|
63.6
|
5.6
|
Cost
|
82.6
|
Cell
therapy
|
|
Purespring
|
51.2
|
-
|
-
|
-
|
51.2
|
4.6
|
PRI
|
38.1
|
Gene
therapy
|
|
OMass
|
49.7
|
-
|
-
|
-
|
49.7
|
4.4
|
PRI
|
28.9
|
Small
molecules
|
|
Kesmalea
|
20.0
|
-
|
-
|
-
|
20.0
|
1.8
|
Cost
|
59.7
|
Small
molecules
|
|
Yellowstone
|
16.5
|
-
|
-
|
-
|
16.5
|
1.5
|
Cost
|
60.9
|
Biologics
|
|
Mosaic
|
15.0
|
-
|
-
|
-
|
15.0
|
1.3
|
Cost
|
76.6
|
Small
molecules
|
|
Forcefield
|
10.6
|
-
|
-
|
-
|
10.6
|
0.9
|
PRI
|
62.6
|
Biologics
|
|
Slingshot
|
5.6
|
-
|
-
|
-
|
5.6
|
0.5
|
Cost
|
100.0
|
Accelerator
|
|
Portfolio milestone
payments
|
|
|
|
|
|
|
|
|
|
|
Neogene milestone payment
|
4.1
|
-
|
0.1
|
0.4
|
4.6
|
0.4
|
DCF
|
|
Cell
therapy
|
|
Clade milestone payment
|
0.7
|
-
|
-
|
-
|
0.7
|
0.1
|
DCF
|
|
Cell
therapy
|
|
Syncona
investments
|
|
|
|
|
|
|
|
|
|
|
CRT Pioneer Fund
|
33.1
|
-
|
-
|
-
|
33.1
|
2.9
|
Adj Third
Party
|
64.1
|
Oncology
|
|
Biomodal
|
17.0
|
0.0
|
0.0
|
1.2
|
18.2
|
1.6
|
PRI
|
5.5
|
Epigenetics
|
|
Achilles
|
8.5
|
0.0
|
1.5
|
0.1
|
10.1
|
0.9
|
Quoted
|
22.7
|
Cell
therapy
|
|
Century[10]
|
1.5
|
0.0
|
(0.6)
|
0.1
|
1.0
|
0.1
|
Quoted
|
1.4
|
Cell
therapy
|
|
Total Life Science Portfolio
|
791.9
|
(6.6)
|
(25.2)
|
19.5
|
779.6
|
69.3
|
|
|
|
|
|
|
Capital pool
|
352.7
|
(15.6)
|
2.4
|
5.3
|
344.8
|
30.7
|
|
|
|
|
TOTAL
|
1,144.6
|
|
|
|
1,124.4
|
100.0
|
|
|
|
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.
Notes
About Key Value Inflection Points
A key value inflection point is a
material de-risking event for a portfolio company that has the
potential to drive significant NAV growth for Syncona, for example
by increasing the possibility of a realisation event, such as
M&A. These milestones can also enable companies to access
significant capital including through financings and IPOs, which
may take place at valuation uplifts and underpin progression to a
subsequent key value inflection point which has the potential to
drive greater value. M&A or capital access is unlikely to occur
immediately following a key value inflection point.
About Capital Access Milestones
A capital access milestone is a
de-risking event for a portfolio company that is expected to enable
access to capital, which underpins progression towards a company's
next milestone. It is less likely that a capital access milestone
will drive significant NAV growth for Syncona, for example by
increasing the possibility of a realisation event, such as
M&A.
