Syncona Ltd GBP · LSE:SYNC
Syncona Ltd GBP — Syncona — H1 FY2025 Earnings Presentation
51 slides from Syncona Ltd GBP's earnings presentation, November 2024
Slide 1: Interim Results
Synconaltd.com Interim Results For the six months ended 30 September 2024 November 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: Overview of the half
Overview of the half Rebalanced portfolio and strong execution provides a platform for growth Performance impacted by quoted holdings and FX NAV of £1.14bn, 178.9p per share, a return of (5.2)% (8.8)% return from the life science portfolio Rebalanced portfolio continues to deliver strong clinical pr
Slide 4: NAV performance
NAV performance Net assets of £1.14bn, 178.9p per share – a return of (5.2)% in the six-month period Life science portfolio valued at £791.9m Life science NAV bridge1 – a return of (8.8)% £m £25.3m in valuation uplifts from private portfolio, including from financings Offset by £75.0m decline in val
Slide 5: A rebalanced and maturing portfolio
A rebalanced and maturing portfolio 5
Slide 6: Our NAV Growth Framework
Our NAV Growth Framework Significant value can be accessed at late-stage clinical development Key exits1 Operational Clearly defined strategy and business plan 1.1x build Leading management team established £15m proceeds (2023) Emerging Clinical strategy defined efficacy data \v Initial efficacy dat
Slide 7: We have rebalanced to a more mature portfolio
We have rebalanced to a more mature portfolio We have a strategic portfolio of 14 companies at different stages of the clinical development pathway Companies with key value inflection points Portfolio rebalanced towards later-stage companies with increased diversification 27% Late-stage clinical (2
Slide 8: Driving value through the delivery of KVIPs
Driving value through the delivery of KVIPs Material de-risking events with the potential to drive significant NAV growth Illustrative value appreciation through delivery of KVIPs Key value inflection points are material de- risking events for a portfolio company that Intrinsic Value* Biogen acquisi
Slide 9: Potential from our most mature private portfolio companies
Potential from our most mature private portfolio companies Beacon, Spur and iOnctura to deliver KVIPs by the end of 2027 Lead programme (roginolisib – first-in-class asset) Lead programme (FLT201 – first-in-class asset) Lead programme (AGTC-501 – first-in-class asset) Uveal melanoma is the most comm
Slide 10: Market environment
74 SYNCONA Market environment
Slide 11: Biotech markets are recovering
Biotech markets are recovering Sentiment and outlook improving Inflation rates across EU/UK/US (2014-2024)2 12.00% 10.00% Macro trends such as softening inflation and falling interest 8.00% rates have the potential to act as tailwinds for our sector 6.00% We are seeing improvements in the private fi
Slide 12: Continued focus from pharma on late-stage M&A
Continued focus from pharma on late-stage M&A Larger deals weighted to late-stage companies Biopharma deals Out-return is weighted toward ~$1bn - $50bn since 20222 later stage development Pharma facing upcoming patent cliff $50 Pharma are facing a patent cliff with over $300 billion $15 of revenue f
Slide 13: Proactive portfolio management
Proactive portfolio management 13
Slide 14: Diversified and maturing portfolio
Diversified and maturing portfolio 14 strategic portfolio companies at different stages of development New company in the period KVIP = Key value inflection point Best ideas Pre-clinical Clinical Late-stage BLA clinical Portfolio increasingly weighted towards clinical and Companies late-stage clinic
Slide 15: Slingshot - The Syncona Accelerator
Slingshot - The Syncona Accelerator A capital efficient way to invest in the next frontier of innovation Accelerating exceptional academic science towards clinical development with £12.5m The Slingshot model commitment Programmes are identified from world-leading academic Slingshot will accumulate a
Slide 16: Rigorous approach to capital allocation
Rigorous approach to capital allocation 16
Slide 17: Capital pool central to delivery of strategy
Capital pool central to delivery of strategy We are funded to the delivery of all of our expected key value inflection points Capital pool of £352.7m 66% of capital pool committed to our existing portfolio 12% and operational costs (including share buybacks), with 22% allocated to underwriting furth
Slide 18: Capital commitments weighted to clinical assets and assets approaching clinical entry
Capital commitments weighted to clinical assets and assets approaching clinical entry Continue to apply a rigorous approach to capital allocation £90m deployed1 into the life science portfolio in the period into the current portfolio and new opportunities Six financings closed in the period, with fi
Slide 19: Attracting external investment to the portfolio
Attracting external investment to the portfolio NAV is robust following recent syndicated financings £m £1,400 Portfolio is now substantially refinanced £1,200 £187m £1.14bn £305.6m of capital raised by portfolio companies in the £1,000 82.0% of NAV £168m £19m period, with £170.5m raised from extern
Slide 20: A strong platform for growth
A strong platform for growth 20
Slide 21: A number of expected key value inflection points
A number of expected key value inflection points Key de-risking events with the potential to drive CY2024 CY2025 CY2026 CY2027 significant NAV growth Commercial traction following Autolus’ US launch On the of obe-cel in CY2025, Two key value inflection points market following FDA regulatory approval
Slide 22: Peer groups for most mature private companies
Peer groups for most mature private companies Beacon, Spur and iOnctura expected to publish key value inflection points by end of CY2027 x average median US$m US$m US$m Company Company Company Company Valuation M&A NASDAQ Company Valuation M&A NASDAQ Company Valuation M&A NASDAQ Valuation Market Cap
Slide 23: 10-year targets
10-year targets Summary and outlook Creating or adding Focused on delivering our strategy and driving NAV growth for our shareholders 3 new companies a year Later stage and diversified portfolio continues to execute well and has attracted significant external capital based on exceptional science 20-
Slide 24: Appendix – Team
Appendix 1 – Team
Slide 25: Evolving and expanding our platform
Evolving and expanding our platform Embedding a new organisational operating model to support the delivery of our strategy Senior investment team A platform for… New opportunities Chris Hollowood Roel Bulthuis Ed Hodgkin Elisa Petris Magdalena CEO Managing Managing Lead Jonikas Partner Partner Partn
Slide 26: 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 27: 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 28: Appendix – Performance and track record
Appendix 2 – Performance and track record
Slide 29: A track record of significant value creation from exits
A track record of significant value creation from exits £1.3 billion invested to date, generating an IRR of 17%, 1.3x invested capital1 Exits generated £955m of proceeds, at an aggregate IRR Full exits of 73.6% and a 3.9x cost2 Pre-clinical Phase I/II Phase III/Pivotal BLA3 Launch Blue Earth First i
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; Late-stage clinical Syncona portfolio Patients diagnosed by 1.3x multiple on companies ac
Slide 31: Appendix - Portfolio
Appendix 3 - Portfolio
Slide 32: 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 33: Ensuring execution in the portfolio
Ensuring execution in the portfolio Strong delivery since introduction of NAV Growth Framework CY2023 Status CY2024 Status Further long-term follow up data Delivered Initiate a Phase I study of obe-cel in refractory systemic lupus Delivered from its pivotal study in obe-cel erythematosus (SLE), exte
Slide 34: Late-stage clinical Clinical Pre-clinical
Late-stage clinical Clinical Pre-clinical Fully diluted 31 Mar 2024 value £m Net invested/returned in Valuation 30 Sep 2024 value Valuation basis Portfolio company ownership %4 (fair value) the period £m change £m FX movement £m £m (fair value) (fair value)1,2,3 % of NAV 41.5% 94.75 9.6 15.1 (6.4) 1
Slide 35: 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 H1 CY2025 CY2025 - Initial data from Phase I trial in SLE - Commercial traction following
Slide 36: Beacon Therapeutics
Late-stage clinical Beacon Therapeutics Initial investment Value 2022 £113.0m Progressing its pivotal study in X-linked retinitis pigmentosa Financing stage Series B Stage of lead programme Phase II/III Investment thesis Targeting an area of high unmet need Market opportunity Beacon has a highly att
Slide 37: Autolus Therapeutics
Late-stage clinical Autolus Therapeutics Initial investment Value 2014 £83.4m Leading cell therapy company with lead programme in adult ALL granted approval by the Financing stage NASDAQ US FDA Stage of lead programme Approved Investment thesis and company update Targeting an area of high unmet need
Slide 38: Spur Therapeutics
Clinical stage Spur Therapeutics Initial investment Value 2015 £157.5m 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 39: Quell Therapeutics
Clinical stage Quell Therapeutics Initial investment Value 2019 £80.0m 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 40: Anaveon
Clinical stage Anaveon Initial investment Value 2019 £35.9m 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 receptor agonist
Slide 41: iOnctura
Clinical stage iOnctura Initial investment Value 2024 £25.0m 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 42: Resolution Therapeutics
Pre-clinical stage Resolution Therapeutics Initial investment Value 2018 £63.6m Seeking to extend the impact of cell therapy into chronic inflammatory liver disease Financing stage Series B Investment thesis Targeting an area of high unmet need Market opportunity Resolution is focused on the treatme
Slide 43: Purespring Therapeutics
Pre-clinical stage Purespring Therapeutics Initial investment Value 2020 £51.2m First company to treat kidney diseases by directly targeting the podocyte with AAV Financing stage Series B gene therapy Investment thesis Targeting an area of high unmet need Market opportunity Developing a proprietary
Slide 44: OMass Therapeutics
Pre-clinical stage OMass Therapeutics Initial investment Value 2018 £49.7m 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 45: Kesmalea Therapeutics
Pre-clinical stage Kesmalea Therapeutics Initial investment Value 2022 £20.0m 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: Yellowstone Biosciences
Pre-clinical stage Yellowstone Biosciences Initial investment Value 2024 £16.5m 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 Developi
Slide 47: Mosaic Therapeutics
Pre-clinical stage Mosaic Therapeutics Initial investment Value 2022 £15.0m 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 48: Forcefield Therapeutics
Pre-clinical stage Forcefield Therapeutics Initial investment Value 2022 £10.6m 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 49: Slingshot Therapeutics
Pre-clinical stage Slingshot Therapeutics Initial investment Value 2024 £5.6m Bridging the gap from academia to drug development Slingshot model Investment thesis Successful programmes are identified from A compelling and capital efficient way to gain exposure to the returns available from world-lea
Slide 50: Appendix – Additional information
Appendix 4 – Additional information
Slide 51: Further information - Peer groups for most mature private companies
Further information - Peer groups for most mature private companies (slide 22) Company Constituents of trading peer group Constituents of M&A peer group Revolution Medicines, Nuvalent, IDEAYA Biosciences, Nurix Therapeutics, Recursion, Relay Therapeutics, AnHeart Therapeutics, Kinnate Biopharma, The