Syncona Ltd GBP · LSE:SYNC
Syncona Ltd GBP — Syncona — H1 FY2024 Earnings Presentation
48 slides from Syncona Ltd GBP's earnings presentation, November 2023
Slide 1: Synconaltd.com November 2023
Synconaltd.com November 2023
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared and published solely for informational purposes. Nothing expressed or implied from the forward-looking statements. contained in this presentation is intended to constitute an offer, invitation or inducement to engage in an investment activity.
Slide 3: Executive summary
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Slide 4: Overview of the half
Overview of the half Rigorous capital allocation and active portfolio management to deliver key value inflection points NAV return of (4.2)% reported in the half Driven by the write-off of the risk adjusted and discounted value of the Gyroscope milestone payments Rigorous capital allocation Macroeco
Slide 5: Market and opportunity
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Slide 6: Market conditions remain challenging but value returning to late stage
Market conditions remain challenging but value returning to late stage Grounds for optimism for companies with high quality late-stage assets Private and public financing environment remains challenging Average Enterprise Value of a Biotech listed on US exchanges by stage of development2 Valuations
Slide 7: Continuing to develop our clinical-stage portfolio
Continuing to develop our clinical-stage portfolio Clinical-stage opportunities presented in the current market can be aligned with Syncona’s strategy and model Clinical-stage assets with opportunities to drive growth Targeting clinical assets which align with Syncona’s model and provide the opportu
Slide 8: Actively managing the portfolio
Actively managing the portfolio 8
Slide 9: A framework for delivering NAV growth
A framework for delivering NAV growth Significant value accessed at late-stage development Current market environment Operational build Clearly defined strategy and business plan Leading management team established Capital access still driven by delivery of these Pre-clinical companies with clinical
Slide 10: Actively managing our maturing portfolio
Actively managing our maturing portfolio Rigorous capital allocation and proactive management across a portfolio with 71% of value in clinical stage Best ideas Pre-clinical Clinical Late-stage BLA clinical Companies moving Prioritising capital allocation toward being on the market Funding de-risking
Slide 11: Upcoming key value inflection points
Upcoming key value inflection points With the potential to drive NAV growth CY2024 CY2025 CY2026 On the market Traction in Autolus’ commercial launch of obe- cel in Adult ALL, 15 expected milestones across the portfolio dependent on FDA over the next 12 months which have the regulatory approval in C
Slide 12: Portfolio spotlight: Freeline Therapeutics
Clinical stage Portfolio spotlight: Freeline Therapeutics Initial investment Value 2015 £8.8m Potential to deliver a company to late-stage development Financing stage NASDAQ Stage of lead programme Phase I/II Investment thesis Targeting an area of high unmet need Market opportunity Freeline has a po
Slide 13: Driving growth
74 SYNCONA Driving growth
Slide 14: The next frontier of science
The next frontier of science Syncona sees significant opportunity across the scientific landscape to create the next wave of biotech leaders “First Wave’’ Syncona was an early mover in the Third Wave, 1950’s “Second Wave’’ particularly in gene and cell therapy Small Molecule Data Modality Starting t
Slide 15: Forcefield Therapeutics
Forcefield Therapeutics Pioneering therapeutics to retain heart function; moving from a seed investment to Series A launch Unmet need in heart disease Forcefield Therapeutics Heart disease is the leading cause of death worldwide Pioneer of best-in-class therapeutics to retain heart function via prot
Slide 16: Capital management
74 SYNCONA Capital management
Slide 17: Performance in the half
Performance in the half Net assets of £1.2bn – a return of (4.2)% in the period Life science NAV bridge £m Performance primarily driven by Novartis’ decision to 1 discontinue development of GT005 and the subsequent £56.4 million write-off of the Gyroscope milestone payments Life science portfolio va
Slide 18: Capital deployment in the half
Capital deployment in the half Continuing to prioritise investing in assets with the potential to drive near term growth Capital deployment during the period (£m) Capital deployment in the period Continued focus on allocating capital towards clinical assets >80% Our priority remains driving optional
Slide 19: Strategic capital management
Strategic capital management Review of capital allocation across the portfolio and pipeline Launch of share buyback reflecting Capital deployment guidance Capital pool management focused on confidence in portfolio valuation liquidity and preservation Launch of share buyback programme of Guidance for
Slide 20: People
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Slide 21: Operating model embedded across Syncona team
Operating model embedded across Syncona team The evolution of our team and structure will support delivery against our long-term targets Senior investment team x Expanded our Senior Investment and Executive Partner team with key personnel now embedded in a new structure Chris Senior Roel Bulthuis Ed
Slide 22: Summary
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Slide 23: Scaling our net assets
Scaling our net assets Committed to delivering our long-term strategy against a challenging market backdrop Targets 3 new companies p.a. We expect this target to incorporate late-stage 3 new companies a year opportunities or a significant transaction Portfolio of 20-25 leading Portfolio increasingly
Slide 24: Summary
Summary Opportunity to deliver value in our portfolio and pipeline remains compelling The macroeconomic environment has been and remains challenging for biotech companies both in terms of the cost of and access to capital We remain resolutely focused on disciplined capital allocation and active port
Slide 25: Appendix - Team
Appendix 1 - Team 25
Slide 26: Leadership team incorporates experience from across the business
Leadership team incorporates experience from across the business Responsible for the Chris Hollowood Roel Bulthuis Rolf Soderstrom Edward Hodgkin operational delivery Chair and CEO Managing Partner, CFO Managing Partner of Syncona’s strategic M&A Biotech investing Head of Investments x Balance sheet
Slide 27: Strong senior investment team embedded
Strong senior investment team embedded Responsible for leading Chris Hollowood1 Chair and CEO Roel Bulthuis Managing Partner, Edward Hodgkin2 Managing Partner the investment team PhD Head of x PhD and building the next Investments MSc, MBA generation of Syncona companies 21 years’ experience 23 year
Slide 28: Appendix – Performance and track record
Appendix 2 – Performance and track record 28
Slide 29: A track record of significant value creation from successful exits
A track record of significant value creation from successful exits £1.1 billion invested to date, generating an IRR of 20%, 1.4x invested capital1 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 Firs
Slide 30: 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; Companies Syncona portfolio Patients diagnosed by 1.4x multiple on progressed to late- 22
Slide 31: Appendix - Portfolio
Appendix 3 - Portfolio 31
Slide 32: Portfolio company fully diluted ownership and valuation
Late-stage clinical Clinical Pre-clinical Fully diluted 31 Mar 2023 value £m Net invested/returned in Valuation 30 Sep 2023 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 67.8% 60.0 15.0 - - 75.0 PRI 6.
Slide 33: Clinical portfolio company outlook
Clinical portfolio company outlook Strategic portfolio Next expected milestones with the potential to enable capital access Syncona view of potential value inflection points across the portfolio companies H2 CY2023 CY2025 - Further long-term follow up data from its pivotal study in obe-cel in adult
Slide 34: Beacon Therapeutics
Late-stage clinical Beacon Therapeutics Initial investment Value 2022 £75.0m Progressing to pivotal study in X-linked retinitis pigmentosa programme Financing stage Series A Stage of lead programme Phase II Investment thesis Targeting an area of high unmet need Market opportunity Beacon has a highly
Slide 35: Autolus Therapeutics
Late-stage clinical Autolus Therapeutics Initial investment Value 2014 £64.0m 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 ne
Slide 36: Quell Therapeutics
Clinical stage Quell Therapeutics Initial investment Value 2019 £87.7m 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 37: Anaveon
Clinical stage Anaveon Initial investment Value 2019 £64.9m Harnessing the power of IL-2 for patients with solid tumours Financing stage Series B Stage of lead programme Phase I/II Investment thesis Targeting an area of high unmet need Market opportunity Developing a selective IL-2 agonist with Huma
Slide 38: SwanBio Therapeutics
Clinical stage SwanBio Therapeutics Initial investment Value 2018 £77.4m Developing AAV-based therapies for the treatment of devastating, inherited Financing stage Series B neurological conditions Stage of lead programme Phase I/II Investment thesis Targeting an area of high unmet need Market opport
Slide 39: Achilles Therapeutics
Clinical stage Achilles Therapeutics Initial investment Value 2016 £8.3m Developing AI-powered precision T cell therapies targeting clonal neoantigens to Financing stage NASDAQ treat solid tumours Stage of lead programme Phase I/II Investment thesis Targeting an area of high unmet need Market opport
Slide 40: 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 41: Purespring Therapeutics
Pre-clinical stage Purespring Therapeutics Initial investment Value 2020 £35.1m 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 42: Clade Therapeutics
Pre-clinical stage Clade Therapeutics Initial investment Value 2021 £24.6m Seeking to dramatically broaden the impact of cell therapy by establishing a more Financing stage Series A robust cellular platform Investment thesis Targeting an area of high unmet need Market opportunity Building the founda
Slide 43: Resolution Therapeutics
Pre-clinical stage Resolution Therapeutics Initial investment Value 2018 £37.9m 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 44: 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 45: 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 46: Appendix - Sustainability
Appendix 4 - Sustainability 46
Slide 47: Continuing to show a strong commitment to ESG
Continuing to show a strong commitment to ESG Our social impact Inspiring and empowering our people £4.6m donated to charity in FY2022/3, ongoing commitment to Top 10 Firm in the FTSE 250 for appointing women to Board and donate 0.35% of NAV per year leadership positions following FTSE Women Leaders
Slide 48: The Syncona Foundation £45m
The Syncona Foundation Supporting excellent charities that are meeting pressing needs within society, particularly those that are related to healthcare systems £45m Syncona donations to charity since Focused on the prevention, treatment, cure and 20121 ultimately eradication of cancer and other dise