Arix Bioscience Share Discussion Threads

[rcturner2] 01/12/2021 18:01

I don't understand the confusion over the cash. Invest it in biotech ffs. That's what the fund is there to do. They invest to make a profit sell up and then reinvest the money, same as every other investment trust.

[skyship] 01/12/2021 16:32

Ahh, I see on 30th April, after the Strategic Review, Naseem Amin left with immediate effect (presumably started selling down his holding!); whilst Clifford Press, CEO of Acacia Research Corporation, commented:

"Since becoming a shareholder in Arix at the end of last year, we have sought to bring about a series of corporate governance improvements and ensure that the company is served by a board that is responsive to its shareholders. We believe it was incumbent upon us to lead on these issues at a critical time when the company was exposed to significant risk. We are grateful to our fellow shareholders for their continued support during this period, and I am delighted that this matter has now been brought to a satisfactory conclusion."

So Acacia still on board; but perhaps not happy at the sp!

[skyship] 01/12/2021 16:10

Almost exactly a year since Naseem Amin, Executive Chairman, bought 183,000 shares @ 206p per share!

Then in March this year Acacia Research, 19% shareholder, published their damning letter regarding appalling management:



Wonder how many shares they still hold.... Anyone know?

[ohisay] 01/12/2021 15:54

A special dividend would have shown tbey were aligned with shareholders.It doesnt seem to have crossed their minds.The market effectively thinks they are going to blow the cash on ipos most of which... in the nature of ipos ...are going to fail.
You are buying the casino here..

[pinemartin9] 01/12/2021 15:05

I think it is a general sentiment around the overall management. They messed up the share buy back in my opinion, they had a pile of cash and didn't know what to do with it. They could have looked at a special dividend but went down the share buy back and in hindsight paid over the odds for that. I like the exposure here but it just seems to suffer from a poor perception amongst investors? Nothing too inciteful from me sorry!

[waterfall city] 01/12/2021 13:06

I don't really understand the big discount here compared to Syncona trading at a premium, there invested in the same space after all and both are invested in Autolus as an example.

[lennonsalive] 01/12/2021 11:57

The bleed won't stop here

[ugandalad] 30/11/2021 11:30

So the real question is how will management reduce this discount as over the last year or so there have been a number of analysis pointing this market under value position out. While it is nice to have a comfortable asset backing position having a more realistic share value has to be a goal. What does the future hold?

[skyship] 30/11/2021 10:25

HP - thnx for that.

So, if you're generous and value cash at par; then you are in effect buying 98p of portfolio valuation for 26p!

[hugepants] 29/11/2021 22:14

FYI I make current NAV about 205p and cash of 107p. I've went through the changes in share prices of the listed holdings since end June and valued the private ones at end of June valuations. Assuming annual running costs of 4p per annum.
Biggest negative is Harpoon (-9p) and biggest positive Aura (+5p)
That puts it on a 34% discount with obviously not much value being assigned to the actual investments given the amount of cash. Looks a relatively safe way to get exposure to the high risk/reward biotech sector.

[makinbuks] 29/11/2021 20:22

LOL Great post

[rcturner2] 27/11/2021 08:01

Possibly you have posted that on the wrong thread, but if you have indeed been "following for some time" and that is your conclusion I would suggest that maybe investing is not for you.

[riskonricky] 26/11/2021 21:01

Don't want to put a downer on this, but after following for some time, I have no idea what underpins the share price here. From what I gather, their business model is to happily burn cash until one day they sell something. I mean, is the NAV just an indication of how much money they've put a bonfire to? How are the board of directors cool with that?

[pinemartin9] 26/11/2021 20:24

Yes indeed. Better entry points in all stocks than yesterday, covid has that impact. The mark down here is a gift given the fact covid wobbles will have zero impact on Arix.

[skyship] 26/11/2021 16:31

Hmm - even better entry point available today @ 133p!

[pinemartin9] 11/11/2021 10:46

Yes, looks to be stabilising. Decent entry point methinks.

[rcturner2] 09/11/2021 20:19

I had a nibble today too.

[skyship] 09/11/2021 08:48

ARIX seems not to have a friend in the world, other than Simon Thompson.

Still, the indicators are now turning up as the share price plateaus at 139p. So if one wants some low-risk BioTech exposure, then at this level ARIX may deserve another look.

I have done so; and back in for a small allocation this morning.


free stock charts from uk.advfn.com

[boystown] 08/11/2021 21:25

Re-tipped by Simon Thompson FWIW...

Aura IPO highlights hidden value in Arix’s unquoted portfolio

Arix’s holding in Aura Biosciences soars on Nasdaq IPO.
The Nasdaq IPO of Aura Biosciences (US:AURA) raised $75.6m at $14 a share and has been well received. The stock is now trading at $18.69 to value the company at $531m.

This is important for UK venture capital group Arix Bioscience (ARIX:140p), the laggard in my market-beating 2021 Bargain Shares Portfolio, which holds 1.52m shares in Aura. The stake is now worth $28.4m (£21m), a 75 per cent premium to the valuation in Arix's half-year accounts, and accounts for 30 per cent of the group's listed portfolio of mainly Nasdaq biotech stocks. This means that Arix’s £181m market capitalisation is 15 per cent less than the combined value of its £139m (108p) cash pile and the £73m (56.5p) listed portfolio. You are also getting a free ride on the group’s £53m (41p) unlisted portfolio even though it includes a conservatively valued £25.3m stake in Artios, a developer of precision medicines for the treatment of cancer that raised $153m from investors in a Series C financing round in July 2021.

Artios could receive discovery, development, regulatory and sales-based milestones of up to $1.3bn under a collaboration agreement (April 2021) with Novartis, and $860m of milestones per target from last December’s agreement with Merck. It’s more likely, though, that one of the pharma giants will bid for the company if its development programmes are successful.

Arix shares are being harshly rated, trading almost a third below spot NAV. Buy.

[pinemartin9] 03/11/2021 20:15

Aura Bioscience up 20% since IPO. Should lead ro a nice increase in NAV for Arix.

[ohisay] 18/10/2021 14:01

'Meanwhile Arix's portfolio has continued to mature'.

You have to laugh at this word mature .
Fact is it's been on a downward spiral for the last 6 months.

Thats why they've stopped the buyback.

They would have more credibility if they told investors what the current NAV was.
Instead they hide behind conveniences.
I cant say I'm at all impressed but each to his own.

[waterfall city] 18/10/2021 13:50

Hopefully they will now find enough deal flow in the biotech space, maybe it would have been good to see the remit expanded to the whole healthcare sector.

[stevenlondon3] 18/10/2021 11:13

Presumably there has been and possibly continues to be a big seller. This is where the company needs a good broker to line up institutional buyers to take up the stock.

[skyship] 18/10/2021 09:09

I've cut my recent purchase as this may prove to be dead money for quite some time. Question is whether the 31% discount to a 203.5p NAV justifies a hold. I figure this could continue its drift down to 130p for a 36% discount

Not sure whether ST's estimate allows for any Pyxis increase; but with the Pyxis share price languishing at $11.77 versus the $16 listing price; perhaps best just to go with that 203.5p figure for the moment.

Disappointing that today's RNS didn't give an updated figure.

[makinbuks] 18/10/2021 08:30

Agreed, delighted with this move. Get the fundamentals right and the discount will disappear