Syncona confident after Q1 market volatility

16th Aug 2022 10:06

(Sharecast News) - Healthcare investor Syncona reported net assets of £1.33bn at the end of its first quarter on Tuesday, or 197.9p per share, up from £1.31bn and 194.4p per share at the end of March.

The FTSE 250 company said that made for a net asset value return of 1.8% in the three months ended 30 June, driven by the positive impact of foreign exchange across the portfolio and capital pool.

Its life science portfolio was valued at £561.8m, up from £524.9m, with a return of -0.2% in the quarter.

The share prices of Syncona's listed holdings were still being negatively impacted by market volatility, although the board said it remained "confident" in the fundamentals of its companies.

It added that the portfolio remained funded to deliver on upcoming clinical milestones in the 2023 financial year, with £38m deployed in the period and a capital base of £768.7m as at 30 June, down from £784.9m at the end of March.

The company said that capital base provided it with a strategic advantage, as it looked to fund "exciting" new opportunities while supporting its current portfolio.

"We are pleased with the continued progress across the Syncona portfolio during the quarter, with our companies delivering on a number of operational and clinical milestones," said Martin Murphy, chair and chief executive officer at Syncona Investment Management.

"Our strategic capital base remains a key competitive advantage, enabling us to continue to fund our companies through the current market conditions, with £38m of capital deployed in the quarter, and strongly positioning us to take advantage of exciting opportunities to found new Syncona companies."

Murphy said Syncona was founded with a long-term vision and approach to leverage its experience in managing life science companies through all market cycles.

"We are confident that we can navigate the current environment to deliver strong risk-adjusted returns for our shareholders and fulfil our purpose to extend and enhance human life."

At 0940 BST, shares in Syncona were down 0.2% at 199.2p.

Reporting by Josh White at Sharecast.com.