Syncona Limited Syncona founds Quell with £35m Series A Financing

TIDMSYNC

Syncona Limited

20 May 2019

Syncona founds Quell Therapeutics with GBP35 million Series A Financing

   --      Foundation of a new Syncona company in an emerging area of cell therapy 

-- Significant GBP34 million commitment from Syncona in line with its strategy of founding companies to become global leaders in life science

-- Syncona will have a 69.3 per cent stake(1) in the business with a holding value of GBP8.3 million(2)

London, 20 May 2019 - Syncona Ltd ("Syncona") announces the foundation of Quell Therapeutics (Quell), a new cell therapy company, with a GBP35 million commitment in a Series A financing of which Syncona has committed GBP34.0 million with a further GBP1.0 million being contributed by UCL Technology Fund. Syncona will have a 69.3 per cent stake(1) in the business, with the first tranche of the Series A commitment of GBP8.3m paid in March 2019.

Quell has been established with the aim of developing engineered T regulatory (Treg) cell therapies. Tregs are a subset of T cells with the potential to downregulate the immune system. Quell will seek to utilise the power of Treg cells to advance therapies for the management and treatment of a range of conditions such as solid organ transplant rejection, autoimmune and inflammatory diseases.

Syncona has significant domain expertise in the T-cell field, identifying Treg cells as an area of high interest in late 2017 and seeking to found a company with the potential to be a global leader in this emerging area. As part of the process, Syncona identified key opinion leaders and unified them behind a common goal of building a company to treat conditions of immune dysfunction utilising gene-modified cells. As a result, Quell has been founded in partnership with six leading experts in the Treg field, cell engineering, solid organ transplantation and autoimmune diseases from King's College London, UCL, and Hannover Medical School.

The GBP35 million financing will allow the company to initiate the development of its first programme. The Syncona team will work closely with Quell as it builds out its operations and management team. Syncona Chief Executive, Martin Murphy, has been appointed Chairman, whilst Elisa Petris and Freddie Dear, Syncona Partners, will be Director and Observer on the Board, respectively.

Elisa Petris, Partner of Syncona Investment Management Limited, said: "The foundation of Quell represents an exciting opportunity for Syncona to build the leading cell engineering company with the potential to develop a first-in-class therapy in an innovative field. Over the last year, we have worked to bring together a group of world-class leaders in their respective fields, developed a strategy for the business and funded the business to enable it to scale and succeed. We look forward to continuing to work in close partnership with them as we build out the company's management team and business plan to deliver their goal of becoming the leader in treating conditions of immune dysfunction utilising gene-modified cells."

Martin Murphy, Chief Executive of Syncona Investment Management Limited, said: "Quell is the tenth life science company to be founded by Syncona and clearly demonstrates our proactive model in areas of deep domain expertise. We identified an innovative area of science with the potential to deliver dramatic impact for patients and worked to build a company around it. It is an exciting addition to our cell therapy platform, where we are strategically and uniquely positioned with expertise across a range of modalities."

Professor Alberto Sanchez-Fueyo of Kings College London, Founding Partner, said: "We are delighted to partner with Syncona to found Quell and are excited to work with the team to develop the next generation of engineered Treg cell therapies. The founder team has a unique cross-section of expertise, built over decades of scientific research and we believe there is a significant opportunity to develop novel therapies for the treatment of solid organ transplant and autoimmune conditions. We share Syncona's vision to bring products to patients in areas of high unmet medical need and are looking forward to the journey ahead."

Hans Stauss, Professor of Tumour Immunology and Director of the Institute of Immunity and Transplantation at UCL, said: "Quell brings together the expertise in clinical trials, regulatory T cell biology and gene engineering at UCL, King's College London and Hannover Medical School. It is exciting to have the backing of Syncona to develop a new class of living medicine to avoid transplant rejection and treat autoimmune diseases."

[ENDS]

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About Syncona:

Syncona is a leading FTSE250 healthcare company focused on founding, building and funding global leaders in life science. Our vision is to deliver transformational treatments to patients in truly innovative areas of healthcare while generating superior returns for shareholders.

We seek to partner with the best, brightest and most ambitious minds in science to build globally competitive businesses.

We take a long-term view, underpinned by a deep pool of capital, and are established leaders in gene and cell therapy. We focus on delivering dramatic efficacy for patients in areas of high unmet need.

About Quell Therapeutics:

Quell's vision is to become a leading engineered Treg cell therapy company. The company will seek to develop next generation engineered T-regulatory cell (Treg) therapies for a range of solid organ transplant and autoimmune conditions.

Quell has been founded by Syncona in partnership with six leading experts in the Treg field, cell engineering, solid organ transplantation and autoimmune diseases: Giovanna Lombardi, Professor of Human Transplant Immunology at Kings College London (KCL), Alberto Sanchez-Fueyo, Professor of Hepatology in the Institute of Liver Studies at KCL, Hans Stauss, Professor of Tumour Immunology and Director of the Institute of Immunity and Transplantation at University College London (UCL), Emma Morris, Professor of Clinical Cell & Gene Therapy and Inflammation, Immunity and Immunotherapeutics Theme Director, National Institute for Health Research University College London Hospitals Biomedical Research Centre, Marc Martinez-Llordella, Senior Lecturer in the Institute of Liver Studies at KCL and Elmar Jaeckel, Co-Leader Liver Transplant program MHH, Group Leader "Immune tolerance" in the Department of Gastroenterology, Hepatology and Endocrinology at Hannover Medical School.

Syncona is a London listed FTSE 250 healthcare company, which has committed GBP34 million to the business in a GBP35 million Series A financing, with a further GBP1.0 million being contributed by UCL Technology Fund.

About UCL Technology Fund:

The UCL Technology Fund is dedicated to investing in intellectual property commercialisation opportunities arising from UCL's world-class research base, focusing in particular on the physical and life sciences. The Fund supports UCL in achieving the full potential of innovations that have prospects for outstanding societal and market impact, right through the development journey from initial proof of concept to practical commercial application.

The Fund is co-managed by AlbionVC, one of the largest independent venture capital investors in the UK in collaboration with UCLB, UCL's commercialisation company.

[1] Percentage holdings reflect Syncona's ownership stake at the point full current commitments are invested.

[2] Quell is held by Syncona at cost. The first GBP8.3m tranche of the GBP34.0 million commitment was paid in March 2019.

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May 20, 2019 02:01 ET (06:01 GMT)