UK Groups Plan Life Sciences Investment Firm

Cancer Research UK is aligning with the Wellcome Trust and investment groups Syncona and BACIT to create a new company with assets of up to £1 billion that will invest in life sciences. Under the plans, Syncona – a Wellcome Trust company – will merge with BACIT, which will also acquire a majority or all of the interest in the Pioneer Fund currently held by Cancer Research UK.

The Pioneer Fund is a £70 million life sciences fund set up to bridge the investment gap between cancer drug discovery and early development by taking potential drugs from discovery through to Phase II clinical trials. Syncona also has a portfolio of life science investments, many of which are focused on oncology.

BACIT, which will seek shareholder approval to be renamed Syncona, intends to invest around £100 million annually into promising life science projects, of which a minimum 25% will be committed to oncology. Should BACIT take a majority interest in the Pioneer Fund – rather than have total ownership – Cancer Research UK will invest £17 million in new ordinary shares of BACIT. Of the total, £7 million relates to its interest in the Pioneer Fund and the remainder is the value of its uncalled commitment to that interest.

BACIT said it intends to hold and finance its life science investments over the long term, with a view to building standalone companies capable of achieving valuations in excess of £1 billion.

“This partnership provides the opportunity to build a company with the vision and scale to bring significant long-term capital to the development of oncology programs, delivering new innovations faster to patients. This is an important step in our mission to bring forward the day when all cancers are beaten,” said Harpal Kumar, CEO of Cancer Research UK.