Syncona: a biotech trust that's going for a song

Syncona is an investment trust that invests in promising, privately-held biotechnology companies. It looks too cheap.

Test tubes © Alamy
It no longer costs $1bn to develop a successful drug © Alamy
(Image credit: Test tubes © Alamy)

Syncona (LSE: SYNC), an investment trust containing stakes in privately-held biotechnology firms, has struggled over the past few months. It was formed in late 2016 when the £650m investment trust BACIT merged with the arm of the Wellcome Foundation that had been commercialising cutting-edge medical research.

Within two years, the share price had doubled to £3 as investors were enthused by the strategy and some promising holdings, but it had fallen to 220p by the end of 2019 and 200p in March.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.