Syncona sees slight dip in NAV as Nightstar declines
UK hybrid biotech investor/fund-of-funds Syncona (SYNC) saw a 0.8% fall in its NAV in February according to its latest factsheet, principally as a result of an 8% decline in the value of its holding in US-listed Nightstar Therapeutics. Syncona holds a 42% stake in this Nasdaq-quoted, but UK based gene therapy company, accounting for 12.5% of its NAV.
Nightstar is developing a gene therapy, NSR-REP1, for choroideremia, a rare, degenerative, X-linked retinal disorder and is conducting a Phase III study that could support a regulatory filing in 2020. The company is also conducting a Phase I/II trial of another gene therapy, NSR-RPGR, for X-Linked Retinitis Pigmentosa, which may render some initial data in the second half of this year.
Syncona discloses monthly values for its three largest investments: Nightstar, Blue Earth Diagnostics, which is focused on the development of novel PET imaging agents for use in cancer therapy, and Autolus, a second-generation CAR-T therapy firm, which together account for around 30% of its NAV. Nightstar is currently Syncona’s only public investment, although Autolus has disclosed it is testing the markets in the US.
Syncona’s shares have declined by around 6% in February and 8% over the first quarter, although at the current 186p, still trade at a 25% premium to NAV. This suggests investors believe there considerable hidden value in its private company portfolio, which may be realised on an IPO or trade sale. Details of Syncona’s (non-financial) investment portfolio is shown in the table below.
| Company | % Owned | Value Feb (£m) | % of NAV | % change, Feb vs Jan | ||
| Blue Earth Diagnostics | 90% | 123.1 | 12.5% | 0.0% | ||
| Nightstar Therapeutics | 42% | 111.8 | 11.3% | -8.4% | ||
| Autolus | 38% | 86.7 | 8.8% | 3.2% | ||
| Freeline Therapeutics * | 74% | 31 | 3.1% | 0.0% | ||
| CRT Pioneer Fund * | n/a | 24.1 | 2.4% | 0.0% | ||
| Gyroscope Therapeutics* | 72% | 7.8 | 0.8% | 0.0% | ||
| Achilles Therapeutics * | 66% | 6.6 | 0.7% | 0.0% | ||
| Cambridge Epigenetix * | 12% | 5.2 | 0.5% | 0.0% | ||
| Total NAV (inc fund holdings) £m | 984.8 | -0.8% | ||||
| Note: * value at 30/9/17, with % of NAV calculated by Marten & Co. | ||||||