Syncona Regulatory News (SYNC)

Syncona Limited

Quell signs cell therapy collaboration with AstraZeneca focused on autoimmune diseases

9 June 2023

· Collaboration to develop, manufacture and commercialise engineered T-regulatory (Treg) cell therapies for two autoimmune disease areas - type 1 diabetes and inflammatory bowel disease

· Quell to receive $85 million upfront which comprises a predominant cash payment and an equity investment, with potential payments of over $2 billion contingent on development and commercial milestones, plus tiered royalties

· Deal further validates Syncona's model and ability to create globally competitive businesses

Syncona Ltd, a leading healthcare company focused on creating, building and scaling global leaders in life science, announces that Quell Therapeutics (Quell), a leader in developing engineered T-regulatory (Treg) cell therapies for serious medical conditions driven by the immune system, and AstraZeneca, a global, science-led biopharmaceutical company, have entered into a collaboration, exclusive option and license agreement to develop, manufacture and commercialise autologous, engineered Treg cell therapies for two autoimmune disease indications.

Under the terms of the agreement, Quell's proprietary toolbox of Treg cell engineering modules, including its Foxp3 Phenotype Lock, will be leveraged to develop autologous multi-modular Treg cell therapy candidates for both type 1 diabetes and inflammatory bowel disease. AstraZeneca will have the option to further develop and commercialise successful candidates, with Quell responsible for the process development and manufacturing of clinical candidates through to the end of the first-in-human clinical study. Quell will continue to retain full ownership of its lead programme QEL-001, which is a Treg cell therapy candidate being developed for liver transplant patients to prevent organ rejection and the life-long need for immunosuppression.

Quell will receive $85 million upfront from AstraZeneca which comprises a predominant cash payment and an equity investment. In addition, Quell will be eligible to receive potential payments totalling over $2 billion, contingent on successfully reaching developmental and commercial milestones, plus tiered royalties. In addition, Quell retains an option, which can be exercised either after approval of an Investigational New Drug (IND) application or at the end of the Phase I/II clinical study, to co-develop Treg cell therapies from the type 1 diabetes program with AstraZeneca in the United States in exchange for additional milestone payments and increased royalties on US net sales.

Following the signing of the agreement, Syncona's ownership stake in Quell is 33.7 per cent, whilst the valuation for this holding is unchanged at $107.0 million (£86.7 million)[1].

Martin Murphy, Chair of Syncona Investment Management Limited and Chair of Quell Therapeutics, said: "We are excited that Quell has attracted AstraZeneca to partner with them on the development of innovative Treg cell therapies. AstraZeneca's expertise and capability will be instrumental in driving these important programmes forward through the development pathway. In a challenging financing environment for biotech companies, I am particularly pleased to see Quell attract this level of financing to drive their programmes forward.

"The collaboration is further validation of the Syncona model and the quality of companies that we can create, build and scale from our leading academic network. I look forward to seeing the impact of the partnership on the speed at which we can bring these ground-breaking therapies to patients."

"We are extremely pleased to have AstraZeneca on board as our first major partner. This collaboration builds on our pioneering work to develop exquisitely engineered, multi-modular Treg cell therapies for immune disorders and provides excellent validation for the technologies and capabilities we have established," said Iain McGill, Chief Executive Officer of Quell Therapeutics. "We are proud and incredibly excited to partner our leading science with the deep experience of AstraZeneca to accelerate the application of our Treg cell therapy platform in major autoimmune disease, where we believe there is a broad opportunity to reset immune tolerance and drive durable responses for patients."

[ENDS]

Enquiries

Syncona Ltd

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Tel: +44 (0) 7714 916615

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About Syncona

Syncona's purpose is to invest to extend and enhance human life. We do this by creating and building companies to deliver transformational treatments to patients in areas of high unmet need.

Our strategy is to create, build and scale companies around exceptional science to create a diversified portfolio of 20-25 globally leading healthcare businesses, across development stage and therapeutic areas, for the benefit of all our stakeholders. We focus on developing treatments for patients by working in close partnership with world-class academic founders and management teams. Our balance sheet underpins our strategy enabling us to take a long-term view as we look to improve the lives of patients with no or poor treatment options, build sustainable life science companies and deliver strong risk-adjusted returns to shareholders.