Syncona Ltd GBP · LSE:SYNC
Syncona Ltd GBP — Syncona — FY2024 Earnings Presentation
53 slides from Syncona Ltd GBP's earnings presentation, June 2024
Slide 1: Full Year Results
Synconaltd.com Full Year Results For the 12 months ended 31 March 2024 June 2024
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared and published solely for informational purposes. Nothing contained in this presentation is intended to constitute an offer, invitation or inducement to In particular, many companies in the Syncona Limited portfolio are conducting scientific re
Slide 3: Progress in the year
Progress in the year Proactive portfolio management, rigorous capital allocation and execution Resilient performance Proactive management of Continued focus on Operational model Well positioned for the against a challenging the portfolio rigorous capital allocation embedded to support long- future a
Slide 4: Financial performance
74SYNCONA Financial performance *
Slide 5: Resilient performance against a challenging market backdrop
Resilient performance against a challenging market backdrop Net assets of £1.2bn, 188.7p per share +1.2% return1 - performance driven by life science portfolio and capital pool, enhanced by accretive share buybacks Life science portfolio valued at £786.1m 2.2% return in the year with the £122.4m upl
Slide 6: Scaling our net assets and market environment
Scaling our net assets and market environment 6
Slide 7: Scaling our net assets 10-year targets to 2032
Scaling our net assets 10-year targets to 2032 Committed to delivering our long-term strategy Creating or adding 3 new companies a year Late-stage opportunities or significant based on exceptional science 3 new companies a year transactions included in this target 20-25 Portfolio of 20-25 leading Po
Slide 8: Valuation recovery focused on late-stage assets
Valuation recovery focused on late-stage assets Investors continue to focus on de-risked assets Average Enterprise Value of a biotech listed on US exchanges by stage of development ($ millions) 2 Market conditions have been challenging, especially the funding environment for pre-clinical and early-s
Slide 9: Proactive management of the portfolio
Proactive management of the portfolio 9
Slide 10: Portfolio evolution
Portfolio evolution Since we launched our 10-year targets in November 2022, portfolio has been rebalanced providing a platform for future growth Prioritised capital and sought to Refined investment focus in cell Taken advantage of market Increased the pace of new de-risk financing pathways and gene
Slide 11: Rebalanced portfolio
Rebalanced portfolio Weighted towards later-stage companies with increased diversification September 2022 – portfolio of 12 companies March 2024 – portfolio of 13 companies 71% of the strategic Clinical profile (by value) portfolio in clinical-stage 36% Late-stage clinical 8% Late-stage clinical ass
Slide 12: Our NAV Growth Framework
Our NAV Growth Framework Significant value accessed at late-stage clinical development Key exits1 Operational Clearly defined strategy and business plan Current market 1.1x build Leading management team established environment: £15m proceeds (2023) Capital access still driven by delivery of these Em
Slide 13: Diversified and maturing portfolio
Diversified and maturing portfolio Focused on delivery across the portfolio New company in the year KVIP = Key value inflection point Best ideas Pre-clinical Clinical Late-stage BLA clinical Portfolio diversified across stage, modality and KVIP in CY2025 Companies moving therapeutic area KVIPs in H2
Slide 14: Rigorous capital allocation
Rigorous capital allocation 14
Slide 15: Capital deployment
Capital deployment Continuing to prioritise capital allocation towards clinical-stage assets and assets approaching clinical entry Capital deployment £172.2m deployed into the life science portfolio in the year Leveraging our balance sheet where cost of capital and access to capital has been challen
Slide 16: Capital pool and allocation to share buybacks
Capital pool and allocation to share buybacks Prudent management of capital pool and £40.0m allocated to accretive share buybacks in the year Capital pool management focused on £40.0m allocated to share buybacks in the year liquidity and preservation Capital pool of £452.8m We believe the current sh
Slide 17: Evolved and more dynamic approach to capital allocation
Evolved and more dynamic approach to capital allocation To support the delivery of our long-term strategy and optimise returns for shareholders Evolution retains the strategic balance sheet that underpins the delivery of long-term strategy, while allowing Syncona to optimise returns for shareholders
Slide 18: Platform and portfolio evolution
Platform and portfolio evolution 18
Slide 19: Creating, building and scaling Autolus
Creating, building and scaling Autolus Supporting our portfolio companies to become global leaders in life sciences H2 2024 Planned commercial launch of obe-cel* First Syncona company taken from research to BLA filing Autolus driving towards transformational patient impact Opened UK cell therapy man
Slide 20: Platform in place to deliver 10-year targets
Lisa Bright worked with Autolus on its Platform in place to deliver 10-year targets commercial strategy, as it approaches commercial launch of obe-cel Syncona’s Regulatory Adviser Gwenaelle Supports efficient management of people, capital and the portfolio Pemberton worked on Beacon’s regulatory str
Slide 21: Strong proactive management of the portfolio
Strong proactive management of the portfolio Driving strong execution across the portfolio in challenging market conditions Ongoing focus on widening Focusing capital on the most Strategic transactions and Consolidations and M&A financing syndicates promising assets financing solutions Extending cas
Slide 22: Spur Therapeutics
Spur Therapeutics Building a leading AAV gene therapy company Market conditions provided differentiated Spur Therapeutics $2 billion Consolidated pipeline of two potentially first-in-class gene therapy opportunity to take Freeline private annual Gaucher assets market size1 Leverages synergies and dr
Slide 23: iOnctura
iOnctura Investing in a clinical asset with potential for strong patient impact Roginolisib boosts tumour targeting cells and reduces levels of tumour protecting Allosteric cells to boost the fight against cancer cells Oncology company developing innovative therapies for neglected binding Effect Act
Slide 24: Yellowstone Biosciences
Yellowstone Biosciences Founding a new oncology company based on highly innovative science Syncona launch team supports development World-class science with a novel approach to treating Launch team in action cancer Founded by Syncona with a £16.5m Series A Syncona launch team has enabled the commitm
Slide 25: Outlook and summary
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Slide 26: Upcoming key value inflection points
Upcoming key value inflection points With the potential to drive significant NAV growth CY2024 CY2025 CY2026 Commercial traction following On the Autolus’ US launch of obe-cel, Eight key value inflection points each market dependent on FDA regulatory of which has the potential to drive approval in C
Slide 27: 10-year targets
10-year targets Summary and outlook Creating or adding Progress in the year Well positioned to deliver growth as market conditions improve Whilst market conditions have remained challenging, value is starting to 3 return to late-stage clinical assets and financing conditions are starting to improve
Slide 28: Appendix - Team
Appendix 1 - Team
Slide 29: Evolving and expanding our platform
Evolving and expanding our platform Embedding a new organisational operating model to support the delivery of our strategy Evolving our senior investment Senior investment team team with new hires and A platform for… promotions x New opportunities Expanding our Executive Partner group, who work with
Slide 30: Leadership team comprises experience from across the business
Leadership team comprises experience from across the business Responsible for the Chris Hollowood Roel Bulthuis Kate Butler Edward Hodgkin CEO Managing Partner, CFO Managing Partner operational delivery Head of M&A Executive of Syncona’s strategic Biotech investing Investments Balance sheet manageme
Slide 31: Strong senior investment team
Strong senior investment team Responsible for leading Chris Hollowood1 CEO Roel Bulthuis2 Managing Partner, Edward Hodgkin2 Managing Partner the investment team PhD Head of PhD and building the next Investments MSc, MBA generation of Syncona companies 22 years’ experience 24 years’ experience 33 yea
Slide 32: Appendix - Performance and track record
Appendix 2 – Performance and track record
Slide 33: A track record of significant value creation from successful exits
A track record of significant value creation from successful exits £1.2 billion invested to date, generating an IRR of 20%, 1.4x invested capital 1 Four exits generated £948m of proceeds, at an aggregate Pre-clinical Phase I/II Phase III/Pivotal BLA3 Launch IRR of 74% and a 4.3x cost2 Blue Earth Fir
Slide 34: Building companies with impact
Building companies with impact Syncona has generated significant impact across its portfolio since being founded in 2012 Building global leaders Our track record Clinical progress Patient impact IRR since 2012; Late-stage clinical Syncona portfolio Patients diagnosed by 1.4x multiple on companies ac
Slide 35: Appendix - Portfolio
Appendix 3 - Portfolio
Slide 36: Ensuring execution in the portfolio
Ensuring execution in the portfolio 10 milestones achieved CY2023 Status CY2024 Status Further long-term follow up data from its Delivered Initiate a Phase I study of obe-cel in refractory Delivered On the pivotal study in obe-cel in adult r/r B-ALL systemic lupus erythematosus (SLE), extending mark
Slide 37: Portfolio company valuation table
Late-stage clinical Clinical Pre-clinical Fully diluted 31 Mar 2023 value £m Net invested/returned in Valuation 31 Mar 2024 value Valuation basis Portfolio company ownership % (fair value) the period £m change £m FX movement £m £m (fair value) (fair value)1,2 % of NAV 12.6% 50.0 - 122.4 (2.9) 169.5
Slide 38: Clinical portfolio company outlook
Clinical portfolio company outlook Strategic portfolio Next expected milestones with the potential to enable capital access Syncona view of potential key value inflection points across the portfolio 1 companies H2 CY2024 CY2025 - Initial data from Phase I trial in SLE - Commercial traction following
Slide 39: Autolus Therapeutics
Late-stage clinical Autolus Therapeutics Initial investment Value 2014 £169.5m Leading cell therapy company preparing for commercial launch of its lead programme in Financing stage NASDAQ adult ALL Stage of lead programme Pivotal Investment thesis and company update Targeting an area of high unmet n
Slide 40: Beacon Therapeutics
Late-stage clinical Beacon Therapeutics Initial investment Value 2022 £80.3m Progressing to pivotal study in X-linked retinitis pigmentosa programme Financing stage Series A Stage of lead programme Phase II/III Investment thesis Targeting an area of high unmet need Market opportunity Beacon has a hi
Slide 41: Spur Therapeutics
Clinical stage Spur Therapeutics Initial investment Value 2015 £135.6m Developing transformative gene therapies for patients suffering from chronic Financing stage Taken private debilitating diseases Stage of lead programme Phase I/II Investment thesis Targeting an area of high unmet need Market opp
Slide 42: Quell Therapeutics
Clinical stage Quell Therapeutics Initial investment Value 2019 £84.7m On track to be the first company to deliver engineered Tregs in the liver transplant Financing stage Series B setting Stage of lead programme Phase I/II Investment thesis Targeting an area of high unmet need Market opportunity Po
Slide 43: iOnctura
Clinical stage iOnctura Initial investment Value 2024 £25.6m Innovative small molecule company developing transformative cancer therapies Financing stage Series B Stage of lead programme Phase Ib Investment thesis Targeting an area of high unmet need Market opportunity iOnctura represented an opport
Slide 44: Resolution Therapeutics
Pre-clinical stage Resolution Therapeutics Initial investment Value 2018 £50.0m Seeking to extend the impact of cell therapy into chronic inflammatory liver disease Financing stage Series A Investment thesis Targeting an area of high unmet need Market opportunity Resolution is focused on the treatme
Slide 45: Purespring Therapeutics
Pre-clinical stage Purespring Therapeutics Initial investment Value 2020 £45.3m First company to treat kidney diseases by directly targeting the podocyte with AAV Financing stage Series A gene therapy Investment thesis Targeting an area of high unmet need Market opportunity Developing a proprietary
Slide 46: OMass Therapeutics
Pre-clinical stage OMass Therapeutics Initial investment Value 2018 £43.7m A platform built to unlock highly validated but inadequately drugged targets, with a Financing stage Series B focus on immunological and rare diseases Investment thesis Targeting an area of high unmet need Market opportunity
Slide 47: Anaveon
Pre-clinical stage Anaveon Initial investment Value 2019 £35.7m Harnessing the power of IL-2 for patients with solid tumours Financing stage Series B Investment thesis Targeting an area of high unmet need Market opportunity Developing a selective IL-2 agonist with Human Interleukin 2 “IL-2” approved
Slide 48: Kesmalea Therapeutics
Pre-clinical stage Kesmalea Therapeutics Initial investment Value 2022 £12.0m Opportunity to create a new generation of oral drugs addressing diseases through Financing stage Series A modulating protein homeostasis Investment thesis Targeting an area of high unmet need Market opportunity Small molec
Slide 49: Mosaic Therapeutics
Pre-clinical stage Mosaic Therapeutics Initial investment Value 2022 £7.3m Leveraging the unprecedented insights of the genomic revolution to develop Financing stage Series A targeted therapies for cancer Investment thesis Targeting an area of high unmet need Market opportunity Tumour agnostic drug
Slide 50: Forcefield Therapeutics
Pre-clinical stage Forcefield Therapeutics Initial investment Value 2022 £6.5m Pioneering therapeutics to retain heart function Financing stage Series A Unmet need in heart disease Forcefield Therapeutics Heart disease is the leading cause of death worldwide Pioneer of best-in-class therapeutics to
Slide 51: Yellowstone Biosciences
Pre-clinical stage Yellowstone Biosciences Initial investment Value 2024 £1.0m Pioneering soluble bispecific T-cell receptor (TCR)-based therapies to unlock a new Financing stage Series A class of cancer therapeutics Investment thesis Targeting an area of high unmet need Market opportunity Developin
Slide 52: Appendix - Sustainability
Appendix 4 - Sustainability
Slide 53: A flourishing life science ecosystem
A flourishing life science ecosystem Read more Syncona has played a pivotal role in building the life science ecosystem in the UK about our impact in our Sustainability Report Strong commitment to supporting our sector and having a positive impact Syncona has had a significant impact on the UK’s lif