Syncona firm Nightstar raises another $45m

The FTSE 250 firm said the funding round resulted in a write-up of Syncona’s investment in Nightstar to £69.7m, a £20.3m - or 3.1p per share - uplift to Syncona’s proforma valuation of £49.4m.

Syncona retained a 46% stake in the business, having previously held 55%.

The company said Nightstar also attracted investment in the round from existing shareholder New Enterprise Associates, and new “leading international institutional” investors.

Syncona launched Nightstar in 2014 with Robert MacLaren, professor of ophthalmology at the University of Oxford.

The board said the business specialised in developing gene therapies for inherited retinal dystrophies, and was building a pipeline of ophthalmology gene therapy product candidates for the treatment of “devastating diseases”.

Its most advanced programme, according to Syncona, was in clinical trials for the treatment of choroideremia - a rare disease which causes permanent loss of eyesight, and for which there was currently no other treatment.

Nightstar also commenced clinical trials for a second program to treat X-linked retinitis pigmentosa in March of this year.

The latest round of funding would enable Nightstar to “further progress” its pipeline, Syncona’s statement claimed.

“Since launching Nightstar in 2014, we have focused on setting the business up for long term success as it seeks to fulfil its goal to become a global leader in gene therapies for inherited blinding conditions,” said Syncona’s chief investment officer and Nightstar’s chairman Chris Hollowood.

“We are delighted to continue to play a significant role in the business which has attracted leading international institutional investors who are aligned with our vision.

“We look forward to working with the company’s shareholders and management team to bring this to fruition.”