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(Alliance News) - Syncona Ltd on Thursday reported strong growth in net asset value during its third quarter, lifted by the proposed USD1.5 billion sale of a portfolio company.
The London-based investment trust focused on healthcare saw 16% growth in net asset value in its financial third quarter, which ended December 31, with net assets growing to GBP1.34 billion from GBP1.15 billion at the end of September. NAV per share was up to 199.3 pence, up from 171.7p in the previous quater.
Syncona said the rise in NAV was largely due to the proposed GBP1.1 billion sale of retinal gene therapy business Gyroscope Therapeutics to Novartis AG, which boosted NAV by GBP221 million, or 33p per share. Syncona could receive a further payment of GBP249.4 million should Gyroscope achieve agreed milestones. Gyroscope was valued at GBP374.2 million at period-end.
Series B financings of Quell Therapeutics Ltd and Anaveon AG also contributed around GBP37 million to NAV, or 5p per share. Total financings for the quarter were USD674 million.
However, these gains were partially offset by a drop in the share prices of other Syncona portfolio companies, with their total value decreasing by GBP63.7 million. This was due to the "significant market volatility" in the period.
Key milestones to come in the calendar year include data publishing from Autolus, Anaveon, and Achilles, and further clinical progress from Freeline, Quell, and Swanbio, the investor said.
Syncona shares were up 0.2% to 195.50 near midday in London on Thursday, having climbed as high as 216.50 pence earlier in the morning.
Chief Executive Officer Martin Murphy said: "It has been a period of significant activity within the portfolio, with multiple financings, further clinical progress, and our third successful exit to date. The proposed sale of Gyroscope to Novartis for up to USD1.5 billion shows our continued ability to build globally competitive businesses and deliver strong risk-adjusted returns for our shareholders. Once closed, the proceeds from this transaction will strengthen our capital base and provide us with the flexibility to continue to fund the growth of our current portfolio and invest in new opportunities."
By Elizabeth Winter; elizabethwinter@alliancenews.com
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