Syncona adds two oncology investments to portfolio

(Sharecast News) - Life science investor Syncona announced the addition of two new oncology companies to its portfolio on Thursday. The FTSE 250 company said the investments included leading an €80m (£68.4m) series-B financing round for iOnctura, and launching a new company, Yellowstone Biosciences, with a £16.5m series-A financing commitment.

Syncona said it had invested €30m in iOnctura, a European clinical-stage biopharmaceutical company focussed on developing therapies for neglected and hard-to-treat cancers.

The investment secured Syncona a 23% stake in the company.

iOnctura's leading candidate, roginolisib, was described as a first-in-class allosteric modulator of PI3K delta (PI3Kδ), showing promise in treating various solid and haematological cancers.

Roginolisib had demonstrated long-term safety and emerging efficacy in a phase 1b clinical trial for metastatic uveal melanoma, a rare eye cancer.

The company was planning to initiate phase two trials in 2024 for uveal melanoma, non-small cell lung cancer, and primary myelofibrosis.

Syncona also announced the launch of Yellowstone, a new company dedicated to developing soluble bispecific T-cell receptor (TCR)-based therapies.

With a £16.5m series-A investment, Syncona held a 60.9% stake in Yellowstone.

The company would be focussed on creating a new class of cancer therapeutics by targeting specific, frequently-expressed peptide antigens derived from a biobank of adult acute myeloid leukaemia (AML) patients.

Syncona said that approach aimed to selectively kill cancer cells, potentially transforming treatment for AML and other cancers.

Yellowstone was spun out from the University of Oxford, and was supported by Oxford University Innovation (OUI).

The company was led by professor Paresh Vyas, a renowned academic clinician, and Neil Johnston, who would bring extensive industry experience from his tenure at Novartis.

Syncona representatives, including SIML chief executive officer Chris Hollowood and investment partner Gonzalo Garcia, would join the Yellowstone board.

"iOnctura represents a compelling opportunity to invest in line with our strategy and capital allocation focus in a clinical-stage company, and take a promising lead programme through to late-stage development," said Roel Bulthuis, managing partner and head of investments at Syncona Investment Management, and iOnctura board member.

"To date, no company has been able to successfully target this well-known cancer pathway with sufficient precision."

Bulthuis said that by "allosterically modulating" PI3Kδ, iOnctura had achieved a new level of precision and could be the first company to develop a clinically-meaningful medicine targeting the pathway.

"Its programmes have potential utility across a range of cancers, which we are supporting the company to unlock through a refined clinical strategy."

At 1106 BST, shares in Syncona were down 0.46% at 113.07p.

Reporting by Josh White for Sharecast.com.