Syncona to buy US biotech AGTC for $23.5m

Healthcare group Syncona said on Monday that it has agreed to buy US biotechnology firm Applied Genetic Technologies Corporation (AGTC) for around $23.5m, or $0.34 per share, in cash.

AGTC is a clinical-stage company focused on the development and commercialisation of adeno-associated virus (AAV)-based gene therapies for the treatment of rare and debilitating diseases with an initial focus on inherited retinal diseases (IRDs).

Syncona, which is buying AGTC through a newly-established portfolio company, said the deal also includes the potential for up to an additional $50m in contingent value rights to AGTC's stockholders in the event certain milestones being reached.

Syncona said the acquisition will further enhance its gene therapy portfolio and represents an opportunity for the company to apply its expertise in retinal gene therapy to support AGTC to drive its lead candidate, AGTC-501 (laruparetigene zosaparvovec), targeting X-linked retinitis pigmentosa (XLRP), through late-stage clinical development.

Chris Hollowood, chief investment officer of Syncona Investment Management Limited, said: "This transaction further demonstrates the strength of our strategic capital base to fund exciting opportunities such as AGTC, where we believe we can apply our model and bring to bear our expertise to drive strong risk-adjusted returns for Syncona shareholders and deliver significant impact for patients."