Life sciences investment trust Syncona (SYNC) has provided the cornerstone investment in a $148 million funding round for biotech start-up Gyroscope Therapeutics.
The $42.3 million (£30.8 million) investment increased Syncona’s ownership stake to 54% and resulted in a 38.3% increase in the value of its £98.9 million holding, equivalent to around 2% of Syncona’s market capitalisation. The shares gained 0.6% to 260.1p.
HIGH CONVICTION STRATEGY
Syncona differentiates itself from other life sciences investors by adopting a high conviction, early stage investment strategy which means typically it is the founder and largest shareholder in investee companies.
Gyroscope Therapeutics is a clinical stage gene therapy company focused on diseases of the eye and the financing will enable the company to advance development of its GT005 therapy for treatment of geographic atrophy which can lead to the loss of the retina.
GT005 has received Fast Track designation from the U.S. Food and Drug Administration.
The financing was led by Forbion’s Growth Opportunities Fund and brought in investment from global institutional investors including Sofinnova Investments, Tetragon Financila Group, Fosun Pharma and Cambridge Innovation Capital.
Chris Hollowood, chief investment officer of Syncona Investment Management and chairman of Gyroscope, said, ‘Syncona founded Gyroscope in 2016 in partnership with leading academics to develop genetically defined treatments for dry AMD, a leading cause of blindness.’
POSSIBLE FLOAT
In a separate announcement Gyroscope said it is considering additional capital raising options this year which could include an initial public offering.
