Syncona cornerstones $148m Series C in Gyroscope
26 March 2021
Syncona cornerstones $148 million Series C Financing in Gyroscope
· $42.3 million (£30.8 million[1]) investment in Gyroscope alongside specialist global institutional investors in $148.0 million (£107.8 million) Series C financing
· Syncona's holding in Gyroscope written up by £37.9 million (5.6p per share) to £150.6 million; 38.3 per cent uplift to holding value of £98.9 million[2] with Syncona's ownership stake in the business now 54 per cent
Syncona Ltd, a leading healthcare company focused on founding, building and funding a portfolio of global leaders in life science, today announced that it has invested $42.3 million (£30.8 [3] million) in Gyroscope Therapeutics Ltd (Gyroscope), a clinical-stage gene therapy company focused on diseases of the eye, in an $148.0 million (£107.8 million) Series C financing. The financing was led by Forbion's Growth Opportunities Fund and also brought in investment from global institutional investors including Sofinnova Investments, Tetragon Financial Group Limited, an undisclosed healthcare focused fund, Fosun Pharma and Cambridge Innovation Capital.
Following the financing, Syncona's holding value in Gyroscope has been written up to £150.6 million, representing an uplift of £37.9 million (5.6p per share). Syncona's ownership stake in the business is now 54 per cent.
This financing will enable Gyroscope to advance clinical development of GT005, the company's lead investigational gene therapy being evaluated for the treatment of geographic atrophy (GA) secondary to age-related macular degeneration (AMD). GT005 has received Fast Track designation from the U.S. Food and Drug Administration and is being evaluated in Phase II clinical trials in two different genetically defined patient populations with GA. These funds will also enable Gyroscope to further advance its early stage pipeline and innovative delivery technology, including its proprietary OrbitTM subretinal delivery system, which is designed for precise delivery to the back of the eye.
Gyroscope has recently announced positive interim data from the Phase I/II FOCUS trial, showing that GT005 was well tolerated in patients and resulted in sustained increases in Complement Factor I as well as down-regulation of an overactive complement system - a part of the inflammatory system which has been strongly linked as a cause of dry AMD. The business has also built out its management team, appointing Jessica Stitt as Chief Financial Officer, who brings two decades of healthcare finance and leadership experience. The business continues to develop its manufacturing capabilities and delivery technology.
Chris Hollowood, Chief Investment Officer of Syncona Investment Management Limited 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. Our continued investment is a reflection of the great progress this world-class team has made towards delivering on that promise. We look forward to partnering with Gyroscope's new investors who share our excitement about the potential of the people and science to make a meaningful impact in patients' lives."
Khurem Farooq, Chief Executive Officer, Gyroscope, said:
"We are excited to welcome a new group of leading life sciences investors on our journey to deliver gene therapy beyond rare disease. Their investment in Gyroscope will allow us to continue building our portfolio of investigational gene therapies, including our lead investigational gene therapy, GT005. We recently announced encouraging Phase I/II clinical trial data with GT005 that give us confidence in its potential as a treatment for geographic atrophy and are now focused on advancing our Phase II clinical programme."
[ENDS]
This announcement includes information that is inside information as defined in Article 7 of the Market Abuse Regulation (EU) No.596/2014. The person responsible for arranging for the release of this announcement on behalf of Syncona Ltd is Andrew Cossar, General Counsel, SIML.
Forward-looking statements - this announcement contains certain forward-looking statements with respect to the portfolio of investments of Syncona Limited. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. In particular, many companies in the Syncona Limited portfolio are conducting scientific research and clinical trials where the outcome is inherently uncertain and there is significant risk of negative results or adverse events arising. In addition, many companies in the Syncona Limited portfolio have yet to commercialise a product and their ability to do so may be affected by operational, commercial and other risks.
Enquiries
Syncona Ltd
Annabel Clay
Tel: +44 (0) 20 3981 7940
FTI Consulting
Ben Atwell / Natalie Garland-Collins / Tim Stamper
Tel: +44 (0) 20 3727 1000
About Syncona
Syncona's purpose is to invest to extend and enhance human life. We do this by founding and building companies to deliver transformational treatments to patients in areas of high unmet need.
Our strategy is to found, build and fund companies around exceptional science to create a dynamic portfolio of 15-20 globally leading healthcare businesses 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 strategic 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 few treatment options, build sustainable life science companies and deliver strong risk-adjusted returns to shareholders.
About Gyroscope
Gyroscope Therapeutics is a clinical-stage gene therapy company developing gene therapy beyond rare disease to treat diseases of the eye that cause vision loss and blindness. Gyroscope's lead investigational gene therapy, GT005, is currently being evaluated in Phase II clinical trials for the treatment of geographic atrophy (GA) secondary to age-related macular degeneration (AMD), a leading cause of blindness. GT005 has received Fast Track designation from the U.S. Food and Drug Administration for the treatment of people with GA.
Supported by leading life sciences investors, Gyroscope has built a global organisation combining discovery, research, drug development, a manufacturing platform and surgical delivery capabilities. Headquartered in London with locations in Philadelphia and San Francisco, Gyroscope's mission is to preserve sight and fight the devastating impact of blindness. For more information visit: www.gyroscopetx.com and follow us on Twitter (@GyroscopeTx) and on LinkedIn.
[1] FX rates at 25 March 2021. Includes amounts previously invested by Syncona as convertible loans; incremental investment in GBP of £13.8m over 31 December 2020 holding value of £98.9m
[2] As at 31 December 2020
[3] See footnote 1.
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