LONDON (ShareCast) - (Sharecast News) - Healthcare investor Syncona reported net assets of £1.15bn at the end of its first half on Thursday, or 171.7p per share, down from £1.3bn or 193.8p per share at the end of March.
The FTSE 250 company said that made for a net asset value total return of -11.4% for the six months ended 30 September, driven primarily by the decline in share prices of two of its listed holdings, Freeline Therapeutics and Achilles Therapeutics.

It said Freeline experienced operational challenges as a result of the Covid-19 pandemic, with those now addressed and the business re-initiating its clinical studies.

Achilles, meanwhile, saw its share price impacted by market sentiment towards cell and gene therapies.

Syncona said its view was that the business was performing well, and executing in line with its expected timelines.

Continued operational progress was reported across the portfolio, with "decisive actions" taken by a number of Syncona's portfolio companies during the period.

Syncona CIO and Freeline chair Chris Hollowood was "closely engaged" with the Freeline board as it updated its executive leadership team, while Syncona CEO Martin Murphy took up the role of chair at Autolus Therapeutics, working with its board to ensure the company was focussed on the delivery of the 'AUTO1' pivotal study.

Positive clinical progress was made across five clinical-stage companies, with further encouraging durability data from Autolus' lead therapeutic candidate AUTO1 for adult acute lymphoblastic leukaemia (ALL).

At Gyroscope Therapeutics, additional positive interim data in its phase 1 and 2 'FOCUS' trial for the treatment of advanced dry age-related macular degeneration (AMD) was reported, while at Freeline, the second patient was dosed in its second clinical programme for Fabry disease.

Post-period end, Freeline announced encouraging data from the patient, while enrolment began in its run-in study for the phase 1 and 2 dose confirmation study for haemophilia B.

At Achilles, continued progress was made in the ongoing phase 1 and 2a studies in non-small cell lung cancer (NSCLC) and melanoma, with patients being enrolled in a higher dose process, while at Anaveon, the first patient was dosed in a phase 1 and 2 study of ANV419, a selective interleukin-2 (IL-2) agonist with the potential to target cancer; several patients have now been dosed in the study.

Syncona said the "next generation" of companies were poised to enter the clinic, with Quell Therapeutics still on track to enter the clinic with its lead programme in liver transplantation in the first quarter of 2022, while SwanBio Therapeutics commenced a natural history study evaluating patients to assess the course of adrenomyeloneuropathy (AMN).

Since the end of the period, SwanBio published encouraging preclinical data for its lead programme, as it remained on track to enter the clinic in the 2022 calendar year.

Syncona said it was continuing to deploy its strategic capital base in line with deployment guidance, with £50.8m deployed in the period as its capital base stood at £534.9m at period end on 30 September.

$30m (£21.7m) had been committed to Clade Therapeutics, a "next-generation" stem cell-based therapeutics business.

Since the period ended, the firm's portfolio companies were still attracting "substantive" capital from long-term investors and companies, accessing $397m in the year-to-date, with $30m committed from Syncona.

"Syncona has always taken a hands-on, partnership approach to supporting our companies as they progress towards key clinical, financial and operational milestones," said chief executive officer Martin Murphy.

"This has been particularly important in recent months when our portfolio companies have needed to take decisive actions to address issues and adapt to specific challenges, some of which are inherent in clinical development.

"Whilst we are disappointed by the decline in net asset value during the period, we are continuing to build a diverse portfolio across the development cycle and therapeutic areas and remain confident in our companies' potential."

Murphy said the "substantial capital" that a number of companies had accessed so far this year validated the "significant opportunity" ahead for them.

"With clinical data the key driver of value and risk for Syncona, we believe our companies are well positioned and on track to further validate our model and strategy in the next 12 months with the potential for a rich seam of data.

"In addition to supporting our existing businesses, our expert team and strategic capital base mean we will be able to continue founding exciting companies around highly innovative science, with the potential to make a transformational difference to the lives of patients and deliver significant value for our shareholders."

At 0912 GMT, shares in Syncona were down 1.46% at 202.5p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE