(Alliance News) - Syncona Ltd on Monday said it will provide further funding to a newly formed firm created after one of its portfolio companies acquired another.

The London-based life science investor owns a diversified portfolio of companies spanning across clinical stages.

In February, Syncona acquired full ownership of Freeline Therapeutics Holdings PLC, a clinical-stage biotechnology company developing gene therapies from Hertfordshire, England.

On Monday, Freeline announced that it purchased Pennsylvania, US-based gene therapy firm SwanBio Therapeutics Inc, a fellow Syncona portfolio company.

This acquisition will see the creation of a new company, Spur Therapeutics, in which Syncona will hold a 99% interest valued at GBP104.7 million.

Syncona Chief Executive Officer Chris Hollowood said: "The creation of Spur is a compelling opportunity to bring together two highly complementary companies progressing gene therapies which address debilitating diseases, whilst supporting a broader pipeline in more prevalent disorders."

Syncona has committed GBP40 million in financing for the new company to support the development of its expanded pipeline.

Michael Parini, chief executive officer of Freeline, will lead the combined entity while SwanBio Executive Chair and Syncona Executive Partner John Tsai will join the board.

Syncona shares were up 0.4% to 110.80 pence each in London on Monday afternoon.

By Elijah Dale, Alliance News reporter

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