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(Alliance News) - Syncona Ltd on Tuesday reported a decline in its third quarter net asset value, noting a depreciating US dollar against sterling and a decline in the share price of investees.
The London-based investor in healthcare companies said net asset value per share as at December 31 fell 5.1% to 192.6 pence each from 202.9p at September 30. The NAV per share was down 3.4% from 199.3p a year prior. The NAV total return was negative 5.1%, swinging from positive 16% a year prior.
The company said it is navigating a "challenging market backdrop for biotech".
The company explained: "Syncona's view is the financing environment for public and private companies remains very challenging, with sector specialist investors continuing to prioritise funding their existing portfolio over making new investments, and an absence of generalist investors in the sector."
Further, the firm said the US dollar depreciating by 8.2% against sterling over the quarter contributed to a negative GBP48.5 million impact on its net asset value.
Syncona said its Life Science portfolio grew 6.4% to GBP641.1 million at December 31 from GBP602.6 million at September 30. However, the Life Science portfolio decreased by 24% from GBP843.2 million when compared to a year ago on December 31, 2021.
Looking ahead, the company expects a small molecule company in which it is invested in to launch in the first half of 2023.
Syncona shares were 2.4% lower at 175.72 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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