Life science focused investment trust Syncona (SYNC) generated a 0.2% net asset value (NAV) total return for the third quarter ended 31 December 2019 to £1.34bn or 199.4p per share, while the the nine month return fell 7%. The shares pushed up 2% to 219p, a premium of 10% to NAV.
Chief executive Martin Murphy commented, ‘we continue to take a hands-on approach to capitalise on the significant opportunities ahead. We have a strong pipeline of opportunities to found new companies and will ambitiously fund our growing portfolio’.
FUNDING GROWTH
Following the sale of assets earlier in the year, the capital pool had risen to around 72% of the portfolio, so it is encouraging seeing the company using some of the cash to fund growth in the portfolio as well as seeding a new company.
Syncona has committed $80m (£61.1m) to Freeline Therapeutics, a biotech business focused on innovative liver directed gene therapies for bleeding disorders. The first tranche of $40m will enable Freeline to expand the team and continue to develop its proprietary platform.
The investment trust is typically the founding and largest shareholder in its portfolio of companies and Freeline, where Syncona holds sway with a 79% stake, is no exception.
The firm is building a new company called Azeria Therapeutics which is the world’s first pioneer factor drug discovery company developing treatments for breast and prostate cancer patients. Syncona has committed £29.5m and holds a 61% stake.
Following the £39.9m of capital deployed over the quarter and £167m over the first nine months the capital base at year end totalled £823.4m, representing 61% of NAV.
