Ex-Woodford Patient Capital rises on £65m Kymab windfall

Schroder UK Public Private shares jump 7% after former Woodford Patient Capital Trust celebrates the $1.1bn sale of cancer developer to French drugs giant Sanofi.

Schroder UK Public Private (SUPP ) shares jumped 7.4% this morning after the former Woodford Patient Capital Trust celebrated the sale of one of its portfolio companies.

The company told investors it expected to receive a £65m windfall from the $1.1bn acquisition of cancer therapist Kymab announced by Sanofi today.

The French drugs giant has also agreed to pay a further $350m if the company hits various milestone targets in the next seven years.

SUPP said could earn up £20m of these, although it cautioned that an additional £5m was subject to potential clawback or payment over the next two years.

The £257m listed fund will use the money to repay some of its debts and support other portfolio companies that it has been unable to help while its finances have been constrained.

Tim Creed, Schroders’ head of European private equity who took over as a co-manager of the trust in December 2019 after former manager Neil Woodford resigned, said: ‘We are proud to have supported Kymab and its management team in its exciting journey so far. Simon Sturge [Kymab chief executive] and his team have done an outstanding job over the last few years and it is fantastic to see all their hard work culminating in this transaction.’

The 2p uplift in SUPP shares to 30.3p leave it slightly below their end of December level of 31p. The shares fell 19% last year, an improvement on 2019 when they more than halved. 

Launched amid a blaze of investor enthusiasm in 2015, the trust shares remain below a third of their orginal value after the stock plunged amid the liquidity crisis that engulfed Neil Woodford’s business and its open-ended sister fund which administrators closed and are in the process of winding down.

SUPP shares closed on a 39% discount below net asset value (NAV) on Friday. The profit  on Kymab - whose stake was valued at £18m by the trust - will be reflected in the end of December NAV when it is published in April. 

 

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