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LONDON - Syncona Limited announced Thursday it plans to change its investment strategy to focus on an orderly realization of its portfolio assets, subject to regulatory and shareholder approval. The decision follows a comprehensive review aimed at maximizing shareholder value amid continued biotech sector challenges.
The company’s board has proposed changing its investment objective and policy to balance returning cash to shareholders in a timely manner while maximizing portfolio value. Under the new strategy, net proceeds from disposals of private portfolio companies would be returned to shareholders, while maintaining reserves for operating costs.
Syncona is also exploring options to accelerate cash returns, potentially through selling portions of certain portfolio companies at a modest premium to the current share price but at a discount to net asset value (NAV).
The strategic shift comes as the biotech sector continues to struggle, with the S&P Biotechnology Index remaining 52% below its February 2021 peak. Syncona’s share price has moved from trading at a premium to a "material discount" to NAV over the past three years.
For institutional shareholders wishing to maintain exposure to early-stage life science companies, Syncona is exploring the creation of a new independent private fund that would be managed by Syncona Investment Management Limited (SIML). This fund would focus on building companies from scientific breakthroughs sourced from London-based university and research partners.
If the new investment strategy is approved, Syncona will suspend its previously published 2032 targets, which included growing assets to £5 billion and building a portfolio of 20-25 companies.
The company stated it would review the new investment objective after significant proceeds have been returned to shareholders or after three years. The board also plans to reduce its size to reflect the company’s new direction.
This announcement is based on a press release statement from Syncona Limited.
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