Syncona Limited First Quarter Update

Syncona Limited

 

First Quarter Update

 

Continued progress and active management of maturing portfolio as late-stage companies approach key milestones

 

10 August 2023

 

Syncona Ltd, a leading healthcare company 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 2023.

 

Chris Hollowood, CEO of Syncona Investment Management Limited, said: “We are pleased by progress throughout the portfolio during the period, as our companies work towards their next operational, clinical and commercial milestones. The expected late-stage data from our newest company Beacon, and Autolus’ upcoming BLA filing, represent significant near-term milestones as our later-stage companies move closer towards bringing products to patients.

 

Whilst the financing environment for biotech companies continues to be challenging, our capital pool of £613.1 million allows us to support our portfolio companies as they navigate these market conditions and we have also been delighted to see continued strong pharma interest in our portfolio. We have seven clinical-stage companies across our increasingly diversified portfolio and we are confident in their ability to execute on their key milestones. We believe the portfolio offers a significant opportunity to realise our ambition to bring transformational treatments to patients and deliver strong risk-adjusted returns to shareholders.”

 

Financial performance

• Net assets of £1,241.8 million (31 March 2023: £1,254.7 million), 184.6p per share (31 March 2023: 186.5p per share), a NAV return of (1.0)% in the period
• Performance in the quarter has been driven by negative foreign exchange movements across the life science portfolio and capital pool with the appreciation of GBP against the dollar leading to an overall net impact of £(14.8) million
• Life science portfolio valued at £628.7 million (31 March 2023: £604.6 million); with the impact of foreign exchange partially offset by an aggregate uplift of £9.8 million, primarily driven by an increase in the share price of Autolus Therapeutics (Autolus)

• £24.4 million deployed in the period; capital pool of £613.1 million at 30 June 2023 (31 March 2023: £650.1 million)

 

Syncona portfolio continues to attract pharma validation for highly innovative platform

 

• Quell Therapeutics (Quell) entered into a collaboration, exclusive option and license agreement with AstraZeneca to develop, manufacture and commercialise autologous, engineered Treg cell therapies for two autoimmune disease indications

• Quell will receive $85 million upfront which comprises a predominant cash payment and equity investment, plus potential payments of over $2 billion contingent on development and commercial milestones, plus tiered royalties. Quell will retain full rights to its lead QEL-001 programme in liver transplantation

 

Positive clinical and operational progress across portfolio with seven clinical-stage companies

 

Late-stage clinical company progress

 

• Autolus announced positive data updates across its portfolio of candidates including in its lead programme, obe-cel in relapsed/refractory (r/r) adult B-Cell acute lymphoblastic leukaemia (B-ALL), as it approaches a Biologics License Application (BLA) filing with the FDA in H2 CY2023
• Beacon Therapeutics (Beacon) continues to progress the clinical strategy for its pivotal Phase II/III VISTA trial in X-linked retinitis pigmentosa (XLRP) having demonstrated meaningful efficacy and a good safety profile in the recent Phase I/II HORIZON trial

 

Clinical company progress

 

• Freeline Therapeutics (Freeline) dosed its first patient with FLT201, its novel gene therapy candidate for Gaucher disease
• SwanBio Therapeutics (SwanBio) dosed two patients in its Phase I/II trial of its SBT101 gene therapy in adrenomyeloneuropathy (AMN)
• Anaveon has continued to progress its lead asset AN419 across its Phase I/II trial in metastatic melanoma, alongside its Phase I/II dose-finding trial in multiple solid tumour types
• Additionally, the company has halted development of a separate Phase I/II trial in multiple myeloma for strategic reasons

 

Key upcoming milestones in FY2023/4

 

Late-stage clinical companies

 

• Autolus expects to:

• Progress its pivotal study in obe-cel in adult r/r B-ALL, with further long-term follow up data in H2 CY2023 and a BLA filing with the FDA expected in H2 CY2023
• Publish initial data from the trial of AUTO8, Autolus’ next-generation product candidate for multiple myeloma, in H2 CY2023
• Initiate a Phase I study of obe-cel in refractory systemic lupus erythematosus (SLE) in early CY2024, extending use of obe-cel into autoimmune diseases

• Beacon expects to release 12-month data from its Phase II trial in XLRP in H2 CY2023

 

Clinical companies

 

• Anaveon expects to:

• Announce further data from its Phase I/II dose finding trial of ANV419 in solid tumours in H2 CY2023
• Publish initial data from its Phase I/II trial of ANV419 in metastatic melanoma in CY2024

• Achilles Therapeutics (Achilles) expects to provide further data from the higher dose clinical cohorts of the Phase I/IIa clinical trials of its cNeT therapy in NSCLC and melanoma in Q4 CY2023
• Quell expects to complete the dosing of the safety cohort in its lead programme, QEL-001, in H2 CY2023
• SwanBio has dosed two patients in its Phase I/II AMN programme and Syncona continues to work with the company on a range of financing options
• Freeline expects to report initial data in the Phase I/II dose-finding trial in Gaucher disease in H2 CY2023

 

Valuation movements in the quarter

 

Company	31 Mar 2023	Net investment in the period	Valuation change	FX movement	30 Jun 2023	% of Group NAV	Valuation basis[1],[2],[3]	Fully diluted owner-ship stake	Focus area
	(£m)	(£m)	(£m)	(£m)	(£m)			(%)
Strategic portfolio companies
Late-stage clinical
Autolus	50.0	0.0	15.0	(2.2)	62.8	5.0%	Quoted	17.9%	Cell therapy
Beacon	60.0	0.0	0.0	0.0	60.0	4.8%	PRI	70.1%	Gene therapy
Clinical
Quell	86.7	0.0	0.0	(2.5)	84.2	6.8%	PRI	34.0%	Cell therapy
SwanBio	58.2	9.4	0.0	(1.4)	66.2	5.3%	Adjusted Cost	80.0%	Gene therapy
Anaveon	64.2	0.0	0.0	(0.5)	63.7	5.1%	PRI	38.0%	Biologics
Achilles	8.6	0.0	(0.1)	(0.2)	8.3	0.7%	Quoted	24.5%	Cell therapy
Freeline	14.1	0.0	(8.7)	(0.3)	5.1	0.4%	Quoted	49.2%	Gene therapy
Pre-clinical
OMass	43.7	0.0	0.0	0.0	43.7	3.5%	PRI	28.9%	Small molecules
Resolution	23.0	14.9	0.0	0.0	37.9	3.1%	Cost	81.1%	Cell therapy
Purespring	35.1	0.0	0.0	0.0	35.1	2.8%	Cost	84.0%	Gene therapy
Clade	24.3	0.0	0.0	(0.7)	23.6	1.9%	Cost	22.4%	Cell therapy
Mosaic	7.3	0.0	0.0	0.0	7.3	0.6%	Cost	52.4%	Small molecules
Kesmalea	4.0	0.0	0.0	0.0	4.0	0.3%	Cost	57.5%	Small molecules
Portfolio milestones and deferred consideration
Gyroscope milestone payments[4]	54.5	0.0	1.6	(1.6)	54.5	4.4%	DCF		Gene therapy
Beacon deferred consideration	15.9	0.0	0.0	0.0	15.9	1.3%	DCF		Gene therapy
Neogene milestone payments[5]	0.0	0.0	2.1	(0.1)	2.0	0.2%	DCF		Cell therapy
Syncona investments
CRT Pioneer Fund	32.8	0.1	0.1	0.0	33.0	2.7%	Adj Third Party	64.1%	Oncology
Biomodal[6]	18.5	0.0	0.0	(0.6)	17.9	1.4%	PRI	5.5%	Epigenetics
Forcefield	2.5	0.0	0.0	0.0	2.5	0.2%	Cost	82.0%[7]	Biologics
Adaptimmune	1.2	0.0	(0.2)	0.0	1.0	0.1%	Quoted	0.8%	Cell therapy
Total Life Science Portfolio	604.6	24.4	9.8	(10.1)	628.7	50.6%
Capital pool	650.1	(34.2)	1.9	(4.7)	613.1	49.4%
TOTAL	1,254.7	(9.8)	11.7	(14.8)	1,241.8	100%

 

 

Enquiries

 

Syncona Ltd

 

Annabel Clark / Fergus Witt

Tel: +44 (0) 20 3981 7940

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[1] Primary input to fair value

[2] The basis of valuation is stated to be "Cost", this means the primary input to fair value is capital invested (cost) which is then calibrated in accordance with our Valuation Policy

[3] The basis of valuation is stated to be "PRI", this means the primary input to fair value is price of recent investment which is then calibrated in accordance with our Valuation Policy

[4] Syncona's risk-adjusted and discounted valuation of the milestone payments from the sale of Gyroscope Therapeutics

[5] Syncona's risk-adjusted and discounted valuation of the milestone payments from the sale of Neogene Therapeutics

[6] Formerly CEGX

[7] Fully diluted ownership of Forcefield Therapeutics at 31 March 2023 has been amended to 82.0%, from previously announced figure of 93.2%