Syncona sells Blue Earth Diagnostics to Bracco Imaging – Syncona has reached an agreement to sell Blue Earth Diagnostics to Bracco Imaging, a global leader in diagnostic imaging for $450 million (GBP354.3 million) plus closing adjustment estimated at $25 million (GBP19.7 million). The sale delivers a 10.0x multiple, including prior distributions, on invested capital for Syncona and a 10.4p per share uplift on the NAV.
Blue Earth is a leader in the radio-diagnostic space. As a commercial stage company which launched Axumin, the standard of care for the diagnosis of recurrent prostate cancer patients in the USA, Blue Earth demonstrates the benefits of Syncona’s long-term approach to founding, building, and funding companies developing transformational products for patients. Since foundation in 2014, the business has successfully completed phase 3 clinical development, secured its first product approval, delivered a successful commercial launch, achieved profitability and acquired a second asset to embed its leadership in the prostate imaging space. More than 50,000 patients have been dosed with Axumin since its launch in 2017 enabling physicians to diagnose patients with recurrent prostate cancer more effectively. Blue Earth will now progress to a new strategic owner in the diagnostic imaging field for the next stage of its growth.
The sale of Blue Earth will generate GBP337 million of net proceeds, further strengthening Syncona’s strategic capital pool and enhancing its ability to build and fund its portfolio companies to succeed over the long term. These companies are scaling rapidly, with a number of significant financings anticipated in the current financial year. In particular, Freeline, Gyroscope and Achilles have recently received the final tranches of previously committed funding and are expected to conduct new financings. Since 31 March 2019, Syncona has deployed GBP64.1 million of capital into its portfolio companies and will continue to fund them ambitiously as the companies scale to capitalise on the opportunities available to them, subject to its disciplined approach to the allocation of capital across the portfolio.
Martin Murphy, chief executive officer of Syncona Investment Management Limited, said, “Blue Earth clearly demonstrates the success of Syncona’s strategy to found, build and fund innovative companies. In the five years since we founded the business alongside Jonathan Allis and his team, we have successfully delivered a high impact product which is transforming how patients with recurrent prostate cancer are managed, having been used in over 50,000 patients. We are proud of this landmark achievement, which is testament to the utility of the product and the exceptional work of the Blue Earth and Syncona teams.
Having now grown Blue Earth into a profitable, marketed product company with the foundations for sustainable long-term growth in place, we are delighted that a new strategic owner will continue to develop the business through its next chapter. Syncona looks forward to redeploying the proceeds to fund both our growing portfolio companies as they scale and exciting new opportunities as they emerge, ultimately with the goal of bringing more transformational products to patients.”
Jonathan Allis, D.Phil., chief executive officer, Blue Earth Diagnostics said: “The acquisition of Blue Earth by Bracco Imaging is a validation of the quality of our people, our pipeline of novel diagnostic agents such as rhPSMA and the proven success of Axumin for imaging in prostate cancer and potentially other future indications. We believe this acquisition is excellent for Blue Earth, as Bracco Imaging’s global footprint and clinical research and marketing support will enable us to expand the reach of our high-value platform of innovative radiopharmaceuticals to inform clinical management and guide care for even more people with cancer around the world. We are so proud of our exceptional, patient-focused team for building a successful radiopharmaceuticals business in only five years. We also wish to acknowledge Syncona for its role in the foundation of the company, and its operational and financial acumen as we have built the business.”
SYNC : Syncona sells Blue Earth Diagnostics to Bracco Imaging