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(Alliance News) - Syncona Ltd on Thursday said its portfolio company Autolus Therapeutics PLC has struck a deal to work with BioNTech to commercialise its CAR-T programmes.
Syncona is a London-based life science investor.
The firm said Autolus and BioNtech have entered into a licence and option agreement, as well as a securities purchase agreement, as a result of the collaboration.
BioNTech has agreed to purchase USD200 million of Autolus' American depositary shares in a private placement. BioNTech will have a right to appoint a director to the board of Autolus, Syncona said.
Additionally, under the terms of the licence and option agreement, BioNTech will make a cash payment of USD50 million.
Also on Thursday, Syncona noted Autolus' pricing of its underwritten offering in the US, which it has set at USD6.00 per share. The firm added that Autolus raised USD350.0 million from its offering of 58.3 million American depositary shares, each representing one share.
Syncona also said it retained an 11.8% stake in Autolus and 33.5 million shares, values at GBP167.8 million.
Moreover, Syncona noted that its portfolio company Beacon Holdings Ltd saw positive results on its phase 2 trial of its lead asset, AGTC-501, in patients with X-linked retinitis pigmentosa. Syncona said AGTC-501 was generally well tolerated, with no clinically significant safety events associated with treatment.
Syncona also reported a recent increase to the value of its portfolio, as the company said it was in a strong position to push forward its main life science companies.
For the third quarter ended December 31, the firm reported a net asset value return of 5.4%, driven by a GBP111.1 million increase in the value of its portfolio company Autolus.
Autolus, a developer of T-cell therapies for cancer treatment, filed a biologics licence application with the US Food & Drug Administration in January, which covers its obe-cell leukemia therapy. The filing was accepted in January, and Syncona expects the FDA to make a decision on approval in November.
The resulting write-up offset a decline in the value of Syncona's holding in Anaveon AG, which dropped to GBP24.9 million from GBP67.7 million.
Synconca had GBP1.25 billion in net assets as of December 31, equivalent to 188.2p per company share, up from GBP1.20 billion at the end of September.
In the three quarters to December 31, net asset value per share has returned 0.9%, with life sciences generating a 3.0% return.
The company's capital pool dropped to GBP551.2 million from GBP580.4 million the previous quarter. GBP18.5 million was invested into life science in the quarter.
The life science portfolio equates to 69% of the company's total portfolio, containing 13 companies, with six at clinical stage and two at late-clinical stage. The portfolio was valued at GBP699.8 million at the end of the quarter, bringing in a 9.7% return.
However, Syncona said that "continuing challenging macro conditions" continued to impact the financing environment for life science companies, but that its strong capital pool provides sufficient flexibility to finance its clinical-stage assets.
Chief Executive Officer Chris Hollowood said: "We have continued to take decisive action to support our companies' ability to deliver on their next key clinical milestones to maximise value across the portfolio against a continuing challenging market backdrop in the third quarter. We have been pleased with the recent clinical and regulatory progress at Autolus, which we believe is now being reflected in its recent positive share price performance."
Shares in Syncona were up 2.6% to 118.60 pence each in London on Thursday afternoon.
By Sabrina Penty & Hugh Cameron, Alliance News reporters
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