Syncona Ltd GBP · LSE:SYNC
Syncona Ltd GBP — Syncona — FY2019 Earnings Presentation
27 slides from Syncona Ltd GBP's earnings presentation, Jun 13, 2019
Slide 1: 2019 Final Results
2019 Final Results 13 June 2019 www.synconaltd.com Image: Freeline labs, Stevenage
Slide 2: Notice
Notice For the purposes of this notice, "presentation" means this document together with any oral presentation, any question or answer session and any written or oral material discussed or distributed during the presentation meeting. This presentation is published solely for informational purposes a
Slide 3: Strong performance in 2019
Strong performance in 2019 Significant progress and strong momentum across the portfolio 3 £28.7m 37.9% new Blue Earth NAV total companies EBITDA return $877m 77.9% 6 Sale of clinical data Life Science Nightstar read outs return ⎼ Three highly innovative new companies (Quell, Anaveon, Omass) ⎼ Merge
Slide 4: Our model: Found. Build.
Our model Founding and building companies around exceptional science to deliver transformational treatments 8 8 out of 10 portfolio companies founded by Syncona Found Build Exceptional science with Successful, sustainable the ability to deliver dramatic efficacy for and globally leading healthcare b
Slide 5: Found. Build. Fund.
Found. Build. Fund. Our model gives us the strategic influence and ability to scale successful businesses quickly We are a conviction scale investor - owning strategic Scale businesses position with influence with a view of being a significant to succeed investor at the point of product approval Amb
Slide 6: Our approach has generated significant value
Our approach has generated significant value Turning scientific assets into financial assets As at 31 March 2019 (£m) 1200 Company Cost1 Value Multiple IRR Established Cost: £385.6m Blue Earth £35.3 £281.72 8.0 83% Value: £1,087.2m 1000 Maturing Nightstar £56.4 £255.84 4.5 72% Autolus £76.2 £328.2 4
Slide 7: Blue Earth: our strategy in action
Blue Earth: our strategy in action Delivering our strategy to take products to market ⎼ Founded 2014; Syncona sole funder (89%) ⎼ Axumin guides treatment decisions in recurrent prostate £83.9m of revenues in FY2019 cancer (last chance to cure); developed through Phase 3 and approval ⎼ Product launch
Slide 8: Rich and broad pipeline of products
Rich and broad pipeline of products One product approved; one in sNDA submission, eight in phase 1/2 Syncona’s deep clinical pipeline PRE-CLINICAL TRANSFORMATIONAL DISEASE AREA SCIENCE PHASE 1 / 2 PHASE 3 COMPANY DEVELOPMENT TREATMENT Blue Earth Recurrent prostate cancer Blue Earth Glioma Autolus AU
Slide 9: Financial review
Financial review John Bradshaw, CFO www.synconaltd.com Image: Freeline labs, Stevenage
Slide 10: Strong performance as our companies grow
Strong performance as our companies grow Growth driven by life science companies £’000 £1,600 – NAV per share of 216.8p – £1,455m 37.9% total return £1,400 +27.7% CAGR Capital pool Capital pool 27% £1,200 £400m – 77.9% return from life £1,056m science; £430.4m gain over £1,000 the year £895m Capital
Slide 11: Life Science Companies
Life Science Companies High conviction portfolio of ten companies Established company Net invested/ Valuation Maturing company Developing company % 31 March 2018 returned change 30 March 2019 Owner value the period in period value Valuation % Portfolio company ship* (£m) (£m) (£m) (£m) basis of NAV
Slide 12: Strategic capital pool
Strategic capital pool Central to the model; enables execution of our long-term strategy Capital pool of £399.7m – Including Nightstar proceeds increases to £655.5m on pro forma basis – Provides flexibility to support our portfolio companies long-term as they Found Build scale – Certainty of funding
Slide 13: Market Opportunity
Market Opportunity Chris Hollowood, CIO www.synconaltd.com Image: Freeline labs, Stevenage
Slide 14: An inflection point for Third Wave therapies
An inflection point for Third Wave therapies Syncona has established a leadership position in a new wave of technologies “First Wave’’ “Second Wave’’ The “Third Wave’’ 1950s 1990s Today Small Molecule drugs, Large Molecule (antibody therapies Advanced Biologics and genetic medicines market dominated
Slide 15: Delivering Third Wave therapies to patients
Delivering Third Wave therapies to patients Quality, consistency, scalability critical to the commercial success of Third Wave therapies Curative Complex No existing potential products supply chain Potential for a single dose cure in Personalised medicines; consistency Delivery key to accuracy in ge
Slide 16: Syncona has an early mover advantage
Syncona has an early mover advantage Invested early to secure and develop key strategic assets in the gene therapy field Syncona Invest early to build industrial scale - manufacturing and delivery model critical to ensure that companies are set up to take products to market Manufacturing team of led
Slide 17: One of the largest unpartnered gene therapy platforms
One of the largest unpartnered gene therapy platforms Potential to deliver dramatic efficacy to patients in areas of high unmet medical need Chronic degenerative Monogenic diseases Monogenic diseases conditions Monogenic diseases Strategy Commercial model Leadership and team Delivery Manufacturing C
Slide 18: Leading position in cell therapy
Leading position in cell therapy Early mover advantage with deep expertise; significant future opportunity in engineered cells Syncona cell therapy portfolio Founding, building and funding global leaders in innovative areas of cell therapy Focused on differentiated and next-gen cell therapies T-regu
Slide 19: Outlook
Outlook Martin Murphy, CEO www.synconaltd.com Image: Freeline labs, Stevenage
Slide 20: Strong momentum across our companies
Strong momentum across our companies Well positioned for the year ahead; majority in or entering intensive scaling period Development stage Company Funding Stage Clinical value drivers and outlook FY2020 Established • Continued positive sales progress in Axumin Profitable • Commence and complete PSM
Slide 21: An expert multi-disciplinary team
An expert multi-disciplinary team A life sciences team with a track record of creating value in the life science sector Martin Murphy Chris Hollowood John Bradshaw Our portfolio is CEO CIO CFO managed by a team with deep expertise across key areas: Edward Hodgkin Elisa Petris Dominic Schmidt Partner
Slide 22: Our capital pool is a strategic asset
Our capital pool is a strategic asset Successful life science businesses scale rapidly; £100-200m capital deployment in FY2020 - Provides flexibility and control to take a long term view, work in Core to delivery of strategy partnership with portfolio companies and drive success Long term view provi
Slide 23: Summary
Summary Differentiated model driving significant shareholder value Differentiated model – Found. Build. Fund - Proven ability to found and scale successful businesses quickly - Long-term strategy to deliver products to market and treatments to patients drives value - Strategic pool of capital; flexi
Slide 24: Supplementary Information
Supplementary Information www.synconaltd.com Image: Freeline labs, Stevenage
Slide 25: Portfolio enriched in Third Wave technologies
Portfolio enriched in Third Wave technologies Companies in specialist and innovative areas of healthcare across the development cycle Continued operational and development progress across the portfolio Description Science Pre-clinical trials Clinical trials Marketed products Value Diagnostics £267.5
Slide 26: A strategic capital pool funding life science
A strategic capital pool funding life science Strong capital base Liquidity profile Liquidity profile £m Net Cash 197.9 < 1 month 21.5 1-3 months 23.1 3-12 months 82.5 > 12 months 74.7 TOTAL 399.7 Net cash < 1 month 1-3 months 3-12 months > 12 months 26
Slide 27: Valuation policy
Valuation policy Robust and conservative policy Life sciences valuation basis – Updates outside the quarterly revaluation cycle driven by new investment rounds or following material new information – In case where Syncona is the sole institutional investor and substantive clinical data has been gene