Syncona – a company focused on founding, building and funding global leaders in life science – has announced the sale of its portfolio company, Gyroscope Therapeutics Holdings plc.

The company has been sold to Novartis, for up to $1.5 billion (£1.1 billion). The upfront cash payment of $800 million (£587 million) has been paid, and up to $700 million (£514 million) in cash is due upon reaching certain milestones.

The transaction generates upfront cash proceeds of $442 million (£325 million) for Syncona’s holding in Gyroscope, which strengthens Syncona’s capital base, as it continues to build and fund its portfolio of life science companies.

Syncona will continue to value the milestone payments, and their risk-adjusted and discounted valuation of these payments for its holding in Gyroscope is estimated to be $64 million (£47 million).

The company aims to found and build companies to deliver transformational treatments to patients in areas of high unmet need. The company’s strategy is to found, build, and fund companies around exceptional science to create a diversified portfolio of 15-20 globally leading healthcare businesses for the benefit of all stakeholders.

The business was set up to address the absence of long-term funding in UK life science, through creating globally competitive, sustainable companies. Syncona’s balance sheet underpins their strategy, allowing them to take a long-term view as we look to improve the lives of patients with no or poor treatment options, build sustainable life science companies, and deliver strong risk-adjusted returns to shareholders.