Syncona Limited

Creation of Spur Therapeutics

17 June 2024

·   Freeline acquires SwanBio to create a new company, Spur Therapeutics, combining two of Syncona's clinical-stage portfolio companies

·   Spur is now progressing two potentially first-in-class gene therapy assets through clinical trials and advancing a pipeline that moves beyond rare diseases into more prevalent conditions, starting with Parkinson's disease

·   The acquisition strengthens Spur's growing focus on CNS diseases, adding key capabilities alongside SwanBio's clinical-stage AMN programme

·     The combined business will be led by Freeline's management team

·   The acquisition has taken place at the portfolio companies' holding valuations, resulting in a combined valuation of approximately £104.7 million[1]

·      Syncona has committed a further £40 million to Spur to support the development of its expanded pipeline

Syncona Ltd, a leading life science investor focused on creating, building and scaling global leaders in life science, today announces that Freeline Therapeutics (Freeline) has acquired SwanBio Therapeutics (SwanBio). The acquisition creates a new company, Spur Therapeutics (Spur), and combines two of Syncona's clinical-stage portfolio companies, representing a significant opportunity to deliver two first-in-class gene therapies and advance a pipeline targeting more prevalent chronic debilitating diseases. Syncona will own 99% of the combined company (a holding value of £104.7 million).

In line with Syncona's strategic focus on allocating capital to clinical opportunities across the portfolio and assets that are approaching clinical entry, the creation of Spur creates a consolidated adeno-associated virus (AAV) gene therapy pipeline with significant opportunity. The acquisition will provide a broadened clinical pipeline and will strengthen Spur's central nervous system (CNS) capabilities to further enable its move into Parkinson's disease. It will also bring synergies around clinical capabilities and manufacturing know-how, as well as drive cost and operating efficiencies.

Spur's lead gene therapy candidate is FLT201 for the treatment of Gaucher disease Type 1, a lysosomal storage disorder for which there is currently no cure. FLT201 is in a Phase I/II clinical trial, and the company has published encouraging data to date. Its newly acquired gene therapy programme, SBT101, is in a Phase I/II clinical trial for the treatment of adrenomyeloneuropathy (AMN), a CNS disorder for which there is currently no approved treatment.

The acquisition will further bolster Spur's growing focus on CNS disorders, including its pre-clinical Parkinson's disease research programme, where a development candidate is expected to be selected in H2 CY2024. Additional data from Spur's Phase I/II Gaucher disease programme is expected in H2 CY2024, and the company expects to initiate a Phase III trial in this indication in CY2025. An initial safety readout from the higher dose cohort in the Phase I/II trial in AMN is expected in H1 CY2025.

The new company will be led by Freeline CEO Michael Parini and will benefit from the world-class leadership of the broader Freeline management team, who are now focused on driving forward two potentially first-in-class gene therapy assets towards late-stage development and advancing a research strategy to move gene therapy into more prevalent diseases. As part of the transaction, SwanBio Executive Chair and Syncona Executive Partner John Tsai will join the Board of Spur.

The acquisition has taken place at the portfolio companies' holding valuations, resulting in a combined valuation of approximately £104.7 million. Alongside the acquisition, Syncona has committed a further £40 million in financing for the company to support the development of its expanded pipeline.

Chris Hollowood, CEO of Syncona Investment Management Limited and Chair of Spur, said: "The creation of Spur is a compelling opportunity to bring together two highly complementary companies progressing gene therapies which address debilitating diseases, whilst supporting a broader pipeline in more prevalent disorders. This is a further example of the proactive action being taken within the Syncona portfolio to prioritise capital and resources towards clinical-stage assets whilst exploring consolidations to drive combined strength. We look forward to working alongside the management team of Spur on its future plans for the company, including the delivery of further data from both the Gaucher disease and AMN programmes and its growing focus on CNS diseases."

[ENDS]

Enquiries

Syncona Ltd

Natalie Garland-Collins / Fergus Witt

Tel: +44 (0) 20 3981 7940

FTI Consulting

Ben Atwell / 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 creating and building companies to deliver transformational treatments to patients in areas of high unmet need.

Our strategy is to create, build and scale companies around exceptional science to create a diversified portfolio of 20-25 globally leading healthcare businesses, across development stage and therapeutic areas, 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 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 poor treatment options, build sustainable life science companies and deliver strong risk-adjusted returns to shareholders.

Copies of this press release and other corporate information can be found on the company website at: www.synconaltd.com. 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.

Syncona Limited seeks to achieve returns over the long term. Investors should seek to ensure they understand the risks and opportunities of an investment in Syncona Limited, including the information in our published documentation, before investing.

About Spur Therapeutics

Spur Therapeutics is a clinical-stage biotechnology company focused on developing life-changing gene therapies for debilitating chronic conditions. By optimizing every component of its product candidates, Spur aims to unlock the true potential of gene therapy to realize outsized clinical results. Spur is advancing a breakthrough gene therapy candidate for Gaucher disease and a potential first-in-class gene therapy candidate for adrenomyeloneuropathy, as well as a research strategy to move gene therapy into more prevalent diseases, including forms of Parkinson's, dementia, and cardiovascular disease. Expanding our impact, and advancing the practice of genetic medicine.

Toward life-changing therapies, and brighter futures. Toward More™

For more information, visit www.spurtherapeutics.com or connect with Spur on LinkedIn.