(Alliance News) - Syncona Ltd on Thursday said it has reached an agreement to sell one of its portfolio companies to US biotechnology firm, Century Therapeutics Inc.
Syncona, a London-based life sciences investor owns 22% of Clade Therapeutics, a Boston-based biotechnology company developing stem cell-derived cell therapies.
The total consideration of up to GBP35.9 million includes an up-front payment of USD27.9 million in cash and shares in Century. This could be followed by future milestone payments which would generate a further USD10 million.
For its 22% ownership position in Clade, Syncona expects an up-front consideration of GBP7.4 million, an estimated GBP16.1 million write down from its valuation in December 2023.
Clade has been part of Syncona's portfolio since August 2021 after it invested USD30 million and the company has since made positive scientific progress in developing treatments. However, to advance to the clinical stage Clade requires significant funding.
Syncona Chief Executive Officer Chris Hollywood said: "Against a challenging market backdrop over the last 18 months, Syncona has prioritised capital allocation towards assets that can achieve clinical data in the near term. The sale of Clade to Century is in line with this approach."
Syncona shares were virtually flat at 120.43 pence each in London on Thursday afternoon.
By Elijah Dale, Alliance News reporter
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Syncona (SYNC)