Indication intelligence, analysis and sector perception

Syncona (SYNC) to acquire Applied Genetic Technologies Corporation (AGTC) update

October 25, 2022 8:00pm

AGTC has entered into a definitive agreement pursuant to which a newly established portfolio company of Syncona Limited (LON: SYNC), through a tender offer, for approximately $23.5 million ($0.34 per share) in cash

Is it a sign of the times for a few gene therapy companies (?)

Sue Washer, CEO NEVER had the right answers for the past two (2) years which was finally recognized by the BOD. I wrote it was a “more than a shame” as to the acquisition; although “criminal” comes more to mind!

While she negotiated the “acquisition”; she intends to pocket almost $1,473,567 million in 2022 with a potential of another same amount in severance foe selling-out shareholders? <read the documents>

SYNC is a healthcare company focused on founding, building and funding global leaders in life science

Chris Hollowood, Chief Investment Officer of Syncona Investment Management Limited stated “Syncona has significant expertise in AAV gene therapy, and in particular, a strong track record of building retinal gene therapy businesses. We believe AGTC’s XLRP program has the potential to be a best-in-class product that could transform the lives of patients suffering with this devastating blinding condition.”

MTS Health Partners, L.P. is acting as financial advisor to AGTC in connection with the transaction. Foley Hoag LLP is acting as legal advisor to AGTC in connection with the transaction.

BTIG LLC is acting as financial advisor to Syncona and Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C. is acting as legal advisor to Syncona in connection with the transaction.

At the closing of the transaction plus potential future aggregate cash payments of up to $50.0 million (up to $0.73 per share) pursuant to contingent value rights (CVRs) represents a premium of up to approximately 344% over AGTC’s closing stock price on October 21, 2022

The Bottom Line: It's more than a "shame" that the board of directors led by Dr. Scott Koenig, let AGTC spiral downward under CEO and president Sue Washer! AGTC’s CEO mismanagement finalized her ONLY way-out … left investors out-of-the-money in relation to past pricing with an upfront cash offer to shareholders at a “current” premium of approximately 42% to the current share price

35 companies, 1 interpreter!

Insight, foresight and recommendation

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