Arix Bioscience Plc

0.00 (0.0%)
Share Name Share Symbol Market Type Share ISIN Share Description
Arix Bioscience Plc LSE:ARIX London Ordinary Share GB00BD045071 ORD 0.001P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 105.00 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
105.00 105.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Coml Physical, Biologcl Resh 0.34 -61.08 -47.30 - 135.69
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 105.00 GBX

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Arix Bioscience (ARIX) Discussions and Chat

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Date Time Title Posts
04/5/202313:23Arix Bioscience plc546
30/7/201811:14Arix Bioscience (ARIX) One to Watch -

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Arix Bioscience (ARIX) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-05-31 15:35:00105.0010,00010,500.00UT
2023-05-31 15:29:24105.7510,00010,575.00O
2023-05-31 15:21:42105.002,5002,625.00O
2023-05-31 15:12:27105.005,0005,250.00O
2023-05-31 15:04:02105.5044.22O

Arix Bioscience (ARIX) Top Chat Posts

Top Posts
Posted at 28/4/2023 10:06 by nakedmolerat
It will be in IC today, then rise and then fall later. Needs more than private investors to buy to move the price up
Posted at 25/4/2023 18:54 by sev22
Hot off the press:

A biotech stock at an unwarranted discount.

This cash-rich venture capital company is priced 41 per cent below book value.

April 25, 2023
By Simon Thompson

*Net asset value (NAV) falls from £255mn to £226mn (175p) in 2022
*Year-end net cash of £122.8mn and portfolio valuation of £99.6mn
*Post-period-end investments made in portfolio companies
*Shares priced 41 per cent below NAV

Arix Bioscience (ARIX:102p), a global venture capital company that holds a diversified portfolio of unlisted and listed investments in early-stage biotechnology businesses, has delivered annual results in line with the investment case I outlined when I selected the shares for my 2023 Bargain Shares Portfolio.

Last year’s decline in NAV reflects the losses on Arix’s investment portfolio of mainly Nasdaq-quoted small and micro-cap biotech stocks. It was caused by a confluence of macroeconomic and political events that drove up the cost of capital and created a challenging environment for the biotech sector. An equal-weighted index of US biotechnology stocks declined 26 per cent in 2022, the reversal coinciding with the steep rise in 10-year US Treasury yields, the preferred discount rate used for valuations.

Investors took flight to safety as capital dried up, financing costs soared and equity markets declined. The sell-off was broad-based, with many new and non-specialist investors reducing their exposure to the biotech sector. Inevitably, smaller biotech companies felt the effects more acutely. Even those companies with positive clinical trial data often failed to impress investors. The number of biotech companies trading below their balance sheet cash remains far above the pre-Covid norm, an indication of how the industry has reset valuations and is positioned for a recovery.

An opportunity for bargain hunting.

The sell-off has created an opportunity for bargain hunters, hence why I included the shares as one of my bargain selections for 2023.

It was partly predicated on the belief that the US Federal Reserve has acted swiftly enough in raising its short-term federal fund rate to see off the inflation threat. Market expectations embedded in the yield curve are adjusting, hence why the US 10-year Treasury yield has fallen from a peak of 4.25 per cent to 3.43 per cent in the past six months. Further easing would undoubtedly be good news for biotech company valuations.

Chairman Peregrine Moncreiffe notes that while Arix’s investment team sees value in the public markets, they are beginning to see attractive valuations for high-quality companies in the private market and expect to add selectively to this part of the portfolio. He highlights the post-period-end acquisition of portfolio company Twelve Bio by Ensoma, a Boston-based genomic medicines company developing one-time in-vivo treatments that precisely engineer any cell of the hematopoietic system. The acquisition was accompanied by $85mn concurrent financing in which Arix participated.

Moncreiffe also highlights that while Arix has sought to take a lead or co-lead position on private company financings in the past, it now prefers to take smaller positions to give more “shots on goal” and introduce more liquidity into the group’s core portfolio. It’s a sensible strategy to adopt as it’s holding around five to 10 per cent of NAV in a public opportunities portfolio to exploit short-term investment opportunities.

Unwarranted share price discount to NAV.

The share price has drifted from my 110p recommended buy-in price. However, the company has cash of £108.7mn (84p) and a listed portfolio of £42.9mn (33p) as of 31 March 2023. These valuations are already worth 15 per cent more than Arix’s current market capitalisation of £132mn (102p). And on top, there's an unlisted portfolio of £66.6mn (51.5p) and legacy investments of £3.1mn, which you're basically getting a free ride on.

The margin of safety on offer strongly suggests re-rating potential when investor risk appetite improves. BUY.

Posted at 06/4/2023 21:59 by reabank
I think the problem is that having cancelled the share buy back the company is investing its cash at a very slow rate. Expenses for the first half were just over £2m but assets (other than cash) under management were < £100m. So 4% / 4.5% expense to asset ratio & at that level a hefty discount to NAV is (perhaps) inevitable. I guess management's explanation is they won't invest if they don't see value. Maybe a merger / sale is the answer?
Posted at 05/4/2023 13:56 by nakedmolerat
The share buy back scheme was such a waste of time. All them monies thrown away. By growing or having investments in bio companies that will have break throughs would have been better. NAV at 1.76, so undervalued. However what next for Arix?
Posted at 23/3/2023 12:05 by gymratt
Back to the tip price. Loaded up again..
Posted at 06/2/2023 18:48 by hugepants
Director purchase by non-exec Peregrine Moncreiffe. 200K at 108.5p!

Posted at 30/1/2023 15:10 by hugepants
December NAV update

NAV 178p. Discount to NAV is 40%.
Cash drops to 95.5p per share following the investment in Ensoma

Posted at 11/8/2022 17:02 by sev22
A Ben Graham recovery play.

A venture capital company that invests in early-stage biotechnology businesses is being valued modestly above its cash pile even though it holds a valuable portfolio of unlisted and listed investments that could deliver strong returns.

August 10, 2022
By Simon Thompson

Arix Bioscience (ARIX:115p), a global venture capital company that holds a diversified portfolio of unlisted and listed investments in early-stage biotechnology businesses, is the laggard in my 2021 Bargain Shares portfolio after investor sentiment was hit by falls in the share prices of its Nasdaq-quoted holdings.

In the latest interim accounts, the group reported £33.9mn of negative valuation movements in its listed holdings, offset in part by £8mn of foreign currency gains due to sterling weakness against the US dollar. However, with cash of £131mn backing up 88 per cent of Arix’s market capitalisation of £149mn, this means that a £37.5mn listed portfolio of 18 Nasdaq stocks, £56.2mn unquoted portfolio, and £1.9mn of other investments, are in the price for 80 per cent below their combined carrying valuations at 30 June 2022.

Of course, investors may be concerned that Arix’s unlisted holdings are being overvalued. However, chief executive Robert Lyne points out that they are valued at cost or the most recent externally-priced funding round, and then referenced to current public valuations of comparable companies, where applicable, to ensure that valuations remain robust in the context of the decline in public biotech markets over the last 12 months. There is even hidden value.

Exploit Arix’s valuation anomaly:

*Net asset value falls from £255mn to £228mn (176p a share) in first half of 2022.
*£25mn net downward portfolio movement due to decline in public biotech markets.
*Cash of £131mn (101p a share) underpins 88 per cent of Arix’s market capitalisation.
*Investee company Disc Medicine to merge with Gemini Therapeutics.

A good example of the valuation process is Arix’s valuable 8.8 per cent stake worth £25.3m in Artios,, a private company that is developing precision medicines for the treatment of cancer. Artios has attracted the attention of big pharma, having entered a research collaboration with Novartis to discover next-generation DNA damage response targets to enhance its Radioligand Therapies (‘Five investment company bargains’ 8 April 2021).

The closest listed comparable to Artios is $500mn market capitalisation Repare Therapeutics (RPTX:NSQ), a Nasdaq-quoted clinical-stage precision oncology company, which has a 44 per cent higher valuation even though Lyne believes Artios has more advanced programmes. Artios raised $153mn in an oversubscribed funding round last summer, so is well funded, and expects to announce data from its Phase 1b dose expansion study in the first half of 2023. Lyne also points out that Arix’s portfolio companies collectively raised over $776mn of funding last year, so are financed to progress to their respective clinical data points, potentially important catalysts for future valuation uplifts.

Sensibly, the board are taking a prudent approach, having exited public positions where the directors no longer had confidence that the companies could deliver the superior returns targeted, and deliberately being cautious about making new private investments. Instead, they have turned their attention to the value in listed companies, focusing on those developing novel therapeutics that are of interest to large pharmaceutical companies, and which have scope to generate positive clinical data in the medium-term.

As part of this strategy, Arix has created a small Public Opportunities Portfolio (POP) of 12 Nasdaq holdings, investing £14.5mn in the first half this year. These businesses are funded through to their milestones, thus reducing the risk of dilutive new fundraisings, and announced five positive data read-outs in the first half of 2022, which has underpinned their valuations. This small portfolio is showing a profit, reversing a small decline in the first half.

Arix’s deep share price discount to book value also ignores the fact that there has been a strong recovery in the value of some of its larger listed holdings since the half-year end. For instance, investee company Aura Biosciences (AURA:NSQ) listed its shares at $14 on Nasdaq last autumn. The holding was valued at £20mn at the end of last year, and £17.6mn at 30 June 2022. However, Aura’s stock price has rallied 30 per cent to $18.36 in the past 10 weeks, valuing the holding at £22.9mn (17.6p a share), and adding 4p a share to Arix’s last reported NAV per share.

Aura is a clinical-stage oncology company that is developing a novel technology platform based on virus-like drug conjugates to target and destroy cancer cells selectively, while activating the immune system to create long lasting anti-tumour immunity. It has made encouraging progress this year, presenting updated safety results that support the value of its technology in patients with early choroidal melanoma. The company is on track with its Phase 2 suprachoroidal study and a final decision on route of administration will be made later this year.

Moreover, another holding, Disc Medicine, a clinical-stage company focused on developing novel therapies to treat serious and debilitating hematologic disorders, is merging with Gemini Therapeutics (NSQ:GMTX) in an all-stock transaction. The enlarged group will focus on advancing Disc’s pipeline of hematology programs. Disc has secured commitments from a syndicate of healthcare investors, including Arix, for a $53.5mn concurrent financing which means that the merged group will have cash of $175mn to advance Disc’s pipeline through multiple clinical studies. It also provides a cash runway into 2025. Last autumn, Arix invested £8.1mn in Disc Medicine and the stake was valued in its interim accounts at £9.1mn.

Arix’s share price is little changed since I last updated my portfolio (‘2021 Bargain Portfolio Review’, 17 February 2022’), and I maintain the view that bottom fishers should be well rewarded buying at these levels. BUY.

Posted at 14/8/2021 00:10 by daemonfunds

Arix Bioscience (ARIX:165p) is the laggard in my 2021 Bargain Shares Portfolio after the share price pulled back below my 168p advised buy in price following interim results from the venture capital company. Arix holds a diversified portfolio of unlisted and listed investments in early stage biotechnology businesses targeting cutting edge advances in life sciences.

Share price weakness in four of its Nasdaq quoted investee companies, the decision to close-down another company after reviewing initial pre-clinical work, and adverse foreign currency movements accounted for £28m, £7.5m and £2.5m valuation reversals, respectively, in the first half of 2021. The negative impact was partly offset by £5.5m net gains on other investee companies, but closing net asset value (NAV) of £281m (214p a share) was still well shy of Peel Hunt’s forecast range (£300m to £310m).

Post the half year-end, Arix’s listed portfolio has suffered further paper losses of £12.7m and currently has a value of £47.3m (36p a share) after factoring in the follow-on US$8m (£5.8m) investment in Nasdaq-quoted drug development company Imara (NSQ: IMRA). Later this year, Imara is expected to announce interim results from its ongoing Phase 2b clinical studies for IMR-687 in sickle cell disease and beta-thalassemia.

Arix has also spent a further £1m on share buy-backs in the second half, and invested £6.3m in portfolio company Artios Pharma’s recent oversubscribed US$153m (£110m) Series C financing round. Artios is a leading DNA Damage Response (DDR) company that is developing a pipeline of precision medicines for the treatment of cancer. In April, Artios entered a research collaboration with drug giant Novartis to discover and validate next-generation DDR targets to enhance Novartis' Radioligand Therapies. I have great hopes for Artios (‘Five investment company bargains’ 8 April 2021) and note some smart investors are backing the company’s management who previously played key roles in AstraZeneca’s discovery of Lynparza, a treatment for advanced ovarian cancer.

Factoring in investments made in the second half, Arix’s proforma net cash of £150.7m (115p a share) and its £47.3m (36p a share) listed portfolio back up 92 per cent of the company’s market capitalisation of £215m. This means that Arix’s unlisted portfolio is in the price for £17m, or 75 per cent below its carrying value of £67.5m (51.6p a share), even though the Artios stake is in Arix's books at £25.3m (19.4p a share) and analysts at Jefferies value it at more than double that sum.

Importantly, Arix’s new management team has been boosted by the return of Mark Chin as managing director following a shareholder led boardroom clear out. Chin was Arix’s investment director from 2016 to 2020 during which time he sourced and led deals in key portfolio companies, including: VelosBio (acquired by Merck for $2.75bn), and Amplyx Pharmaceuticals (acquired by Pfizer). The team highlights no fewer than eight anticipated milestones across Arix’s portfolio in the second half of this year including:

Harpoon Therapeutics (NSQ: HARP) is expected to report interim data from ongoing Phase 1/2 clinical trials in ovarian and pancreatic cancer, multiple myeloma and small cell lung cancer.
Artios is set to initiate a Phase 1 clinical study for its Pol-theta inhibitor for the treatment of PARP resistant cancers.
LogicBio (NMQ: LOGC) expects to report interim data from its Phase 1/2 clinical study for the treatment of methylmalonic acidemia in paediatric patients.

Potential for further valuation upside from unlisted holdings and likely positive newsflow from well-funded listed holdings is not only being materially under-rated, but expect Chin to recycle the cash pile wisely while Arix’s ongoing £25m NAV accretive share buy-back programme – £8m shares were repurchased in the first half – is also supportive. Buy.


Posted at 20/2/2020 07:52 by stevenb3
Iterium and LogicBio were both up 11% yesterday on NASDAQ. However, I don't expect this to follow through into the Arix share price.
Arix Bioscience share price data is direct from the London Stock Exchange
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