Novartis has paid $800 million in cash up front, with up to another $700 million potentially due upon the achievement of certain milestones.

Syncona co-founded Gyroscope in 2016, building the business to become a leader in ocular gene therapies with nearly 200 employees. Gyroscope is currently running Phase II clinical trials on its investigational one-time gene therapy GT005 for treating geographic atrophy secondary to age-related macular degeneration (AMD).

“In five and a half years, enabled by collaborations with four leading UK universities, we have taken Gyroscope from a concept to a potential treatment for geographic atrophy secondary to AMD, a leading cause of blindness with no approved therapies,” said Chris Hollowood, chief investment officer of Syncona Investment Management. “We look forward to seeing Gyroscope fulfil its potential during the next phase of its growth with Novartis, who have an extensive track record in gene therapy and ophthalmology and are ideally placed to complete the journey of taking this transformational therapy to patients.”

The sale to Novartis, which marks Syncona’s third divestment of a portfolio company over the last three years, generated upfront cash proceeds of $442 million. Syncona said the funds strengthen its capital base as it continues to build a portfolio of life science companies over the long term. Its strategy is to create a diversified portfolio of 15-20 globally leading healthcare businesses in the areas of cell therapy, gene therapy, biologics and small molecule drugs.

For Novartis, the acquisition is another in a series of recent deals for eye-related gene therapies, including Arctos Medical last September and Vedere Bio in October 2020.

Author: Elaine Burridge, Freelance Journalist