Syncona commits £63.5m to Resolution Therapies
By Josh White
Date: Thursday 03 Oct 2024
(Sharecast News) - Syncona announced on Thursday that it has committed £63.5m in series B financing to Resolution Therapeutics, a portfolio company focused on macrophage therapy for inflammatory and fibrotic diseases.
The FTSE 250 said the funding would primarily support the clinical development of Resolution's lead candidate, RTX001, which it described as an innovative therapy targeting end-stage liver disease (ESLD).
It said the first tranche of £22m had already been invested, bringing Syncona's holding value in Resolution to £63.6m, with the company's ownership set to reach 82.6% on full drawdown of the series B funds.
RTX001, which was set to enter phase one and two trials in the fourth quarter, aimed to address ESLD, a severe form of liver failure where current treatment options were limited to liver transplants.
Resolution expected to deliver data from the trial by 2026, which could significantly increase Syncona's net asset value (NAV).
The proceeds would also be used to enhance Resolution's manufacturing platform, expand its preclinical pipeline, and strengthen its leadership team.
Resolution had also appointed Paul Sekhri as chair of the board, adding extensive drug development and business expertise.
Sekhri's leadership was expected to support the company's growth and help advance its strategy as it entered its critical clinical phase.
The series B financing brought the total raised by Resolution to £101.4m.
"The data that Resolution has generated to date in this emerging area of medicine is encouraging and, in our view, demonstrates the potential that macrophages have in treating end-stage liver disease," said Edward Hodgkin, managing partner at Syncona Investment Management and a non-executive director of Resolution.
"This is a potential first-in-class product being developed for a disease where patients have no effective therapeutic options and typically face a liver transplant or further deterioration of their condition, which is often fatal."
Hodgkin said Syncona was "delighted" to continue to support Resolution with its commitment to its series B financing, in line with the company's focus on allocating capital to clinical-stage assets and assets approaching clinical entry.
"We are also very pleased to welcome to Resolution Paul Sekhri, who brings a demonstrable track record in supporting companies through the development cycle and will act as a valuable sounding board for the company's growing executive team."
At 1145 BST, shares in Syncona were down 0.53% at 112.6p.
Reporting by Josh White for Sharecast.com.
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