Syncona; Q2 update – big jump in NAV

Syncona Ltd (SYNC.L Market Cap. 1676m, FTSE 250 Index, 247p and 3.0% of JIC Portfolio and 0.0% of JIC Top 10) 

Quarterly update to 30thJune. 

Conclusion: A great quarter, mainly driven by the IPO of Autolus. It has plenty of fire power from its funds portfolio and cash to double the number of Life Science investments. Of the current nine, one is described as established (Blue Earth), three as maturing, (Autolus, Nightstar and Freeline) and five as developing. I read a report earlier this week by someone suggesting that Syncona should be sold as the more than 50% share price premium to NAV was not justified. The reason not to sell is because one believes that there will be many more quarters like the last. Following this morning’s announcement, the premium to NAV has dropped overnight, from 52% to 28%.   I invest in Syncona because I believe that there will be many more similar step changes in NAV as its investments, at all stages of development, increase in value.  Additionally, I expect significant value creation as it invests it liquid pool of £522m in more life science startups and injects its business management skills to develop commercially successful and valuable companies. Happy Holder!   

 

  • Net assets increased by 23.0% to 193.1p with its Life Science Portfolio being the main driver.
  • Life Science Portfolio valued at ¬£789, up 41.8% over the quarter.
  • Life Science Portfolio now 62% of total.
  • Funds‚Äô Portfolio now ¬£453.6m, which with ¬£68.4m cash gives ¬£522m pool for investing further in Life Science businesses.
  • Highlights included a further ¬£18.1m investment in Autolus on its IPO on NASDAQ. Autolus was valued at ¬£275.8m at 30thJune, a ¬£172.6m uplift during the quarter. It also invested ¬£85m in Freeline and ¬£9.8m to a new Syncona company, taking the number of companies in its Life Science Portfolio to nine.

The full statement can be read HERE

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