Creation of Spur Therapeutics

Syncona Limited Creation of Spur Therapeutics 17 June 2024 • Freeline acquires SwanBio to create a new company, Spur Therapeutics, combining two of Syncona’s clinical-stage portfolio companies • Spur is now progressing two potentially first-in-class gene therapy assets through clinical trials and advancing a pipeline that moves beyond rare diseases into more prevalent conditions, starting with Parkinson’s disease • The acquisition strengthens Spur’s growing focus on CNS diseases, adding key capabilities alongside SwanBio’s clinical-stage AMN programme • The combined business will be led by Freeline’s management team • The acquisition has taken place at the portfolio companies’ holding valuations, resulting in a combined valuation of approximately £104.7 million1 • Syncona has committed a further £40 million to Spur to support the development of its expanded pipeline Syncona Ltd, a leading life science investor focused on creating, building and scaling global leaders in life science, today announces that Freeline Therapeutics (Freeline) has acquired SwanBio Therapeutics (SwanBio). The acquisition creates a new company, Spur Therapeutics (Spur), and combines two of Syncona’s clinical-stage portfolio companies, representing a significant opportunity to deliver two firstin-class gene therapies and advance a pipeline targeting more prevalent chronic debilitating diseases. Syncona will own 99% of the combined company (a holding value of £104.7 million). In line with Syncona’s strategic focus on allocating capital to clinical opportunities across the portfolio and assets that are approaching clinical entry, the creation of Spur creates a consolidated adenoassociated virus (AAV) gene therapy pipeline with significant opportunity. The acquisition will provide a broadened clinical pipeline and will strengthen Spur’s central nervous system (CNS) capabilities to further enable its move into Parkinson’s disease. It will also bring synergies around clinical capabilities and manufacturing know-how, as well as drive cost and operating efficiencies. Spur’s lead gene therapy candidate is FLT201 for the treatment of Gaucher disease Type 1, a lysosomal storage disorder for which there is currently no cure. FLT201 is in a Phase I/II clinical trial, and the company has published encouraging data to date. Its newly acquired gene therapy programme, SBT101, is in a Phase I/II clinical trial for the treatment of adrenomyeloneuropathy (AMN), a CNS disorder for which there is currently no approved treatment. The acquisition will further bolster Spur’s growing focus on CNS disorders, including its pre-clinical Parkinson’s disease research programme, where a development candidate is expected to be selected in H2 CY2024. Additional data from Spur’s Phase I/II Gaucher disease programme is expected in H2 CY2024, and the company expects to initiate a Phase III trial in this indication in CY2025. An initial safety readout from the higher dose cohort in the Phase I/II trial in AMN is expected in H1 CY2025. The new company will be led by Freeline CEO Michael Parini and will benefit from the world-class leadership of the broader Freeline management team, who are now focused on driving forward two potentially first-in-class gene therapy assets towards late-stage development and advancing a research strategy to move gene therapy into more prevalent diseases. As part of the transaction, SwanBio Executive Chair and Syncona Executive Partner John Tsai will join the Board of Spur. The acquisition has taken place at the portfolio companies’ holding valuations, resulting in a combined valuation of approximately £104.7 million. Alongside the acquisition, Syncona has committed a further £40 million in financing for the company to support the development of its expanded pipeline. 1 The 31 December 2023 valuation of SwanBio (£74.6m) and Freeline (£20.5m), pro-rata for the movement in share price to the acquisition date and the consideration paid for the remaining shares in Freeline (£9.6m) Chris Hollowood, CEO of Syncona Investment Management Limited and Chair of Spur, said: “The creation of Spur is a compelling opportunity to bring together two highly complementary companies progressing gene therapies which address debilitating diseases, whilst supporting a broader pipeline in more prevalent disorders. This is a further example of the proactive action being taken within the Syncona portfolio to prioritise capital and resources towards clinical-stage assets whilst exploring consolidations to drive combined strength. We look forward to working alongside the management team of Spur on its future plans for the company, including the delivery of further data from both the Gaucher disease and AMN programmes and its growing focus on CNS diseases.”