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

• Generated proceeds of £6.6 million in the quarter taking total realised proceeds to £16.3 million
• 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

• Positive 24-month data from Beacon’s Phase II SKYLINE trial
• Encouraging three-month safety and efficacy data from Beacon’s Phase II DAWN study
• 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:

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

Life science portfolio valuations^[5]

[1] Includes additional EUR 6.0 million (£5.0 million) commitment during the period from XGEN to iOnctura’s Series B financing

[2] Since the period end, as of 5 February 2025, a further £3.9 million of shares have been bought back at an average discount of 46.0%

[3] Definitions of capital access milestones and key value inflection points can be found in the notes section

[4] Most recent public guidance

[5] Portfolio valuations reflect Syncona’s total interest in a company or investment

[6] Primary input to fair value of equity holding

[7] 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

[8] 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

[9] Percentage holding reflects Syncona's ownership stake at the point full current commitments are invested

[10] Syncona received shares in Century as part of the agreement to acquire Clade