Release Date: June 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Syncona Ltd (LSE:SYNC, Financial) has shown strong executional performance despite the biotech market downturn, with nearly 80% of its portfolio by value now in the clinic.
- The company successfully raised GBP310 million into its portfolio, demonstrating the quality of its assets and management.
- Syncona Ltd (LSE:SYNC) has diversified its portfolio across modality and disease area, focusing on clinical stage assets.
- The portfolio continues to attract sophisticated capital at scale, with over GBP300 million raised across seven financings.
- Syncona Ltd (LSE:SYNC) has introduced a strategic update to balance driving value and providing liquidity, aiming to return cash to shareholders as private company portfolios are realized.
Negative Points
- Net Asset Value (NAV) per share is down 9.4% to 171p, primarily driven by the performance of Autolus.
- The biotech market downturn and challenges within the investment trust sector have negatively impacted the company's share price.
- Interest rate increases have limited access to capital markets for many biotech companies, affecting Syncona Ltd (LSE:SYNC)'s portfolio companies.
- The life science NAV was down 17% during the year, with significant challenges in financing companies that were based on assumptions of low capital costs.
- Market uncertainty, including geopolitical factors and unpredictable US administration policies, continues to slow down the recovery of the biotech sector.
Q & A Highlights
Q: Can you elaborate on the potential for accelerated disposals and how much of the portfolio might be involved?
A: Christopher Hollowood, Interim Chairman and CEO, explained that they are not planning a fire sale and will only sell a portion of the portfolio to match liquidity demands from some shareholders. The aim is to satisfy demand without selling more than necessary, although no specific figures were provided.
Q: Could the new fund potentially include the majority of the current portfolio?
A: Christopher Hollowood stated that they need to finalize their path and consult with shareholders. Many shareholders support the current model and team, and the new fund aims to provide a way for those shareholders to continue their support.
Q: How will you choose which assets to sell and ensure Syncona investors are protected if a successful asset is sold?
A: Christopher Hollowood acknowledged the potential conflict and assured that they have thought carefully about structuring the process to protect investors, although specifics were not disclosed.
Q: How advanced is the new fund, and what are its contingencies?
A: The new fund depends on shareholder support and interest from third-party institutions. Significant conversations and feedback have been received, giving confidence in the fund's potential, though it is not yet finalized.
Q: What are your thoughts on Autolus, given its current stock price and commercial performance?
A: Christopher Hollowood expressed belief in Autolus's cell therapy, noting that Q1 numbers exceeded expectations. While the autoimmune thesis has lost momentum, they remain confident in the data and are holding their position, having sold at $4.50 but not at the current $2.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
