(Alliance News) - Syncona Ltd on Friday said it has completed the sale of Gyroscope Therapeutics Holding PLC to Novartis AG.
The London-based healthcare-focused investment trust held a 54% stake in ocular gene therapy business Gyroscope, which Swiss pharmaceutical company Novartis has bought for USD1.5 billion.
Novartis has made an upfront cash payment of USD442 million. A further USD700 million in cash is potentially due should Gyroscope achieve agreed milestones.
For its stake, Syncona has received upfront cash proceeds of USD442 million, boosting its capital base.
Syncona co-founded Gyroscope in 2016, and held a 54% stake following a USD42 million investment last March. The sale to Novartis was announced a few days before Christmas.
Syncona will continue valuing the milestone payments, with a risk-adjusted and discounted valuation estimate for the payments of USD64 million. It also will benefit from future commercialisation of Gyroscope's lead programme, via a "low single-digit" royalty on future sales.
Syncona's share price was up 1.3% to 200.47 pence each in London on Friday morning.
Novartis' share price was up by 0.8% to CHF80.60 each in Zurich on Friday morning.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Syncona (SYNC)