LONDON: Schroders Capital Global Innovation Trust plc announced that its portfolio company Memo Therapeutics AG has signed a definitive agreement for Ipsen to acquire its potravitug program, marking the fifth exit for the trust’s life sciences investments since 2019.
The transaction focuses on potravitug, a first-in-class monoclonal antibody targeting BK polyomavirus reactivation in kidney transplant recipients. BK polyomavirus-associated nephropathy remains a serious clinical complication with no currently approved targeted therapies, often leading to graft loss and transplant failure.
Financial Terms and Expected Returns
Memo shareholders will receive €200 million upfront at closing on a cash-free, debt-free basis, with additional deferred payments tied to development, regulatory approval and sales milestones that could push total consideration beyond €700 million. The transaction is expected to close during the third quarter of 2026, subject to customary conditions.
Schroders Capital invested £1.2 million in Memo in October 2023. Based on the upfront consideration, the company expects proceeds of approximately £2.1 million (CHF 2.3 million), representing a 1.8x multiple on invested capital. If all deferred payments are achieved, total potential proceeds would reach approximately £6.7 million (CHF 7.1 million), or 5.6x MoIC.
As part of the transaction, Memo’s assets and employees unrelated to potravitug will transfer to a newly incorporated company retained by existing shareholders, including Memo’s collaboration with CSL on the Rec-IgG Project and its DROPZYLLA antibody discovery platform.
Track Record and Portfolio Impact
Schroders Capital has made eight new life sciences investments since being appointed investment manager in 2019. This latest exit builds on previous realizations including Carmot Therapeutics at 3.2x gross MoIC, Anthos Therapeutics at 1.4x, Araris Biotech at 8.1x and Neurona Therapeutics at 1.4x, bringing the realized track record to 3.0x gross MoIC.
“We are pleased to highlight Ipsen’s proposed acquisition of Memo’s potravitug programme,” said Tim Creed, lead portfolio manager, and Harry Raikes, co-portfolio manager, in a joint statement. “Memo has developed a differentiated antibody platform and potravitug has the potential to address a serious unmet need for kidney transplant patients affected by BK polyomavirus. The proposed transaction reflects the quality of Memo’s science and the strength of its clinical-stage programme.”
The manager currently estimates the transaction will result in a positive valuation adjustment of 2.14% to the March 31, 2026 net asset value. All unquoted holdings, including Memo, will undergo further evaluation as part of the June 30 interim results.
In line with the company’s managed wind-down and previously announced tender offer, upfront proceeds will contribute to increasing the planned capital return to shareholders to £23.5 million less costs, revised upward from the £20 million outlined in the Circular. The board has extended the tender offer timetable, with the final tender price determination date now set for Sept. 16, 2026, following publication of interim results.
