Heads have turned in biotech circles with an ASX filing confirming that Platinum Asset Management has increased its stake in clinical-stage drug developer Syntara to 19.24%, fresh off the commencement of a Phase 2a clinical study that has the potential to become a new treatment for patients diagnosed with myelofibrosis (bone marrow cancer).
The combination arm of Syntara’s clinical trial, has commenced dosing myelofibrosis patients with SNT-5505 in combination with the current leading drug. Together, they have the potential to change the course of myelofibrosis for these patients and could become the new standard of care for a disease desperate for a better treatment. The average life expectancy of myelofibrosis patients is just five years from diagnosis.
Fund managers at Platinum Asset Management will be familiar with the myelofibrosis market, where current drugs on the market generate more than $1.5 billion per annum. It’s just one of the reasons Platinum was already a 7.63% shareholders of Syntara, before increasing their stake to 19.24% through an institutional Placement in December 2023. The issuing of those shares was approved by shareholders last week, prompting the ASX notice by Platinum.
Founded in 1994 by Kerr Neilson and Andrew Clifford, Platinum Asset Management has established itself as a prominent player in the global investment landscape. With a focus on long-term value investing and a disciplined approach to portfolio management, Platinum has consistently delivered strong returns for its investors. The firm’s investment philosophy revolves around identifying undervalued assets with the potential for substantial growth over time, making it a trusted name in the financial industry.
Over the years, the firm has built a diverse portfolio spanning various sectors, including technology, healthcare, and finance. By conducting rigorous research and analysis, Platinum has positioned itself as a leader in identifying promising investment opportunities that offer attractive risk-adjusted returns.
The decision to increase its stake in Syntara comes as no surprise given Platinum’s track record of identifying and investing in high-growth companies.
Platinum’s decision to increase its stake in Syntara to just under 20% is a move that maximises their exposure to the Company. Major institutions typically do not go above 20% of companies they invest in as above 20% the takeover laws must be complied with. Additionally, it means Platinum could play a significant role in any potential takeover by a third party who would need the support of Platinum.
By acquiring the stake just under 20% to become the largest shareholder, Platinum is now positioned along with other major shareholders to hold significant influence on negotiations should a takeover offer emerge in the myelofibrosis treatment market which has been hot for M&A activity in recent years.
Entering Phase 2b/3 trials, which could potentially start in 2025 would be a major turning point for Syntara given the last two companies with blood cancer drugs in Phase 3 were acquired by Big Pharma companies for USD $1.7 billion in 2021 (Constellation Pharmaceuticals) and USD $1.9 billion in 2022 (Sierra Oncology).
Given their history in the pharmaceuticals space and connections, Platinum and its associates are now well positioned to take value in the event of an asset sale at the end of the current phase 2 a study but would likely also have the resources to support Syntara with further funds to conduct the follow on study and reach for the potential $1b+ exit.
“After receiving the go ahead from the FDA in Q3 2023 we recruited our first patient in the follow-on study where SNT-5505 is being dosed in combination with ruxolitinib in myelofibrosis patients in Q4 and by the end of January the study was already 25% recruited.,” said Syntara CEO, Gary Phillips.
“Ruxolitinib is the current standard of care in myelofibrosis with sales in excess of $1b per year. We aim to have that study fully recruited by mid-2024 and the first preliminary data ready for presentation at the December 2024 American Society of Hematology conference.”
With its proven track record as savvy investors with more than $15 billion under management and its timely investment in Syntara, Platinum is now well-positioned to capitalise on opportunities in the blood cancer space.
Investors are invited to join the Syntara mailing list by subscribing here.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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