Gene Therapy Player Freeline Therapeutics Goes Private In $28M Deal

London-listed Syncona Ltd has agreed to acquire Freeline Therapeutics Holdings plc FRLN in an all-cash transaction for $6.50 per American Depositary Share. 

This price values Freeline's entire issued share capital at approximately $28.3 million and represents a 51% premium over the closing price before the announcement of Syncona's initial proposal on October 18. 

The acquisition is expected to close in the first quarter of 2024.

If completed, the acquisition will result in the company becoming a wholly owned Syncona portfolio company, and its ADSs will no longer be listed on Nasdaq.

In conjunction with the agreement, Syncona is committing to provide Freeline with up to $15 million in secured convertible debt financing to support operations and continued advancement of FLT201, its gene therapy candidate in Gaucher disease, through completion of the transaction.  

The Note will bear interest at 12% annually and will be capitalized monthly in arrears. The Note has a conversion price of $6.50 per ADS.

Last month, Freeline Therapeutics reported initial data from the ongoing Phase 1/2 GALILEO-1 trial of FLT201, its adeno-associated virus (AAV) gene therapy candidate, in Gaucher disease. 

Data from the first two patients in GALILEO-1 show that a single infusion of FLT201 led to several hundred-fold increases in GCase activity in plasma and normalization of GCase activity in leukocytes.

Price Action: FRLN shares are up 11.3% at $6.43 on the last check Wednesday.