(Alliance News) - Syncona Ltd on Thursday said net asset value decreased as it swung to a negative return in its latest half year, but that it is well-positioned for future growth thanks to its "rich pipeline".
Syncona also announced that Martin Murphy is stepping down from his role as chair of Syncona Investment Management Ltd or SIML, having co-founded the company with the Wellcome Trust in 2012. Chris Hollowood has become interim chair and chief executive officer.
The London-based investor in healthcare companies said its NAV at September 30 was 178.6 pence per share, down from 186.5p at March 31.
Syncona shares were down 2.1% at 132.22p each in London on Thursday morning.
Syncona said the NAV return for the six months that ended on September 30 was negative 4.2%, compared with the positive 4.3% delivered the previous year. Its life science portfolio was valued at GBP620.9 million, up from GBP604.6 million at March 31, and delivered a negative 7.0% return for the half year following the prior year's positive 3.9%.
SIML CEO Hollowood, however, said: "Against challenging market conditions, which impact cost and access to capital, we continue to focus our capital allocation on clinical opportunities across the portfolio, with 71% of portfolio company value now in clinical stage assets.
"In parallel, we are proactively managing the portfolio to ensure that our companies with clinical data have a path forward to reach late-stage clinical development, where we believe significant value can be accessed."
Syncona noted its "maturing portfolio of 13 companies", with seven clinical stage including two late-stage firms.
The company said it is working towards 15 expected milestones across its portfolio over the next 12 months which could potentially enable capital access, and expects to achieve the next one in the current half year. Another two are expected in the first and second halves of 2024.
Syncona also noted six key inflection points with the potential to "drive significant NAV growth" over the next one to three years.
Finally, Syncona said it expects four of the 15 milestones to be achieved by portfolio company Autolus, as well as traction following the US commercial launch of its obe-cel product in 2025.
"Looking forward, the team continue to see a rich pipeline of innovative science around which we can build the next generation of biotech leaders, deliver transformational impact for patients, provide sustainable growth and execute on our long-term strategy," said Hollowood.
"We are well positioned to emerge from the current environment and deliver strong-risk-adjusted returns for shareholders and demonstrate progress towards our goal to scale to GBP5 billion of net assets by 2032."
By Emma Curzon, Alliance News reporter
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