Bionex Share Discussion Threads

[simonevans] 08/2/2004 08:08

Looks like the valn. could be significantly higher:


The Sunday Times - Business



February 08, 2004

Right royal price tag on Ark float
Paul Durman



ARK THERAPEUTICS, which recently launched a plastic boot for treating foot and leg ulcers, is seeking a stock-market valuation of close to £200m.
The company has appointed Credit Suisse First Boston and Nomura International to raise up to £50m in the flotation, which will be seen as a test of sentiment towards biotech firms.



Ark abandoned an earlier attempt to float two years ago, and some experts feel it is again seeking too high a valuation.

One leading investor in the sector said: "It's a crazy price. There's no way any sane person will consider a technology valuation of £140m for a company that has a plastic bag as its lead product."

The technology valuation strips out the £7m that Ark had at the end of 2003 and the money to be raised in the float.

The "plastic bag" is the Kerraboot - a boot-like dressing that allows ulcers to heal in a warm, moist environment, reducing the need for nurses to change dressings. It was launched in Britain in November and has secured marketing approval for America.

Ark's float will be good news for Merlin Biosciences and its founder, Sir Chris Evans, Britain's best-known biotech entrepreneur. Merlin, which has a stake of about 20% in Ark, has so far secured few profitable exits from its investments.

Ark is also working on treatments for brain tumours, cancer-related muscle-wasting and blocked blood vessels.

[a harris] 07/2/2004 10:19

summary information at

[rivaldo] 07/2/2004 08:50

Well, now we know...Valuation of £50m before float monies - was the conclusion that BNX had around 2.6% of Ark after all options etc? If so, that's around £1.3m of value (without any premium), plus £1m cash and a load of other investments. So I s'pose whether you think BNX is a bargain at around 2p (£3.2m m/cap) depends on your view of a post-float premium, the value of the other investments - and any corporate strategy as to what to do with the £1m cash:



"Ark takes advice on possible £50m float
By Rosie Murray-West, City Correspondent (Filed: 07/02/2004)

Ark Therapeutics, Britain's biggest privately held biotechnology company, is sounding out potential investors over plans to revive the stock market flotation it pulled a year and a half ago.

The company is understood to have appointed the Japanese bank Nomura, which is one of its main investors, and Credit Suisse First Boston as advisers on the float, which is expected to value the company at well over £100m.

"The market is ready," one source close to the deal said last night. "Final decisions will be taken whether or not the company will float over the next few weeks." The company is believed to be looking at raising between £40m and £50m.

Ark, which is part-owned by biotech entrepreneur Sir Chris Evans's Merlin Biosciences, pulled its £140m flotation in May 2002 as the window for new stock market listings slammed shut. The poor debut of the music company HMV also affected the leisure companies Punch Taverns and William Hill in the same week.

Since that time, only tiny Sinclair Pharma has managed to make it on to the market from the sector, and unlike Ark it is not a typical biotechnology business.

Analysts are now optimistic that the UK market is ready to accept the company, saying that it has made more progress and has a wound dressing called Kerraboot on the market. Ark also has a revolutionary brain cancer drug in trials which appears to prolong the rate of survival in patients with the disease.

"If Ark floats, then the floodgates will open for more UK biotech companies to list on the market," said one biotechnology chief executive. "Everyone is waiting to see what happens."

Other businesses believed to be planning flotations include Scottish companies Strakan, Ardana and Cyclacel. Cyclacel is also part-owned by Merlin Biosciences. In the US, the market for biotechnology businesses is already beginning to bounce, with more than eight companies listing since last November.

"I don't think it is going to be as strong here, but the market is ready for the right kind of companies," an analyst said."

[fur] 06/2/2004 14:42

no but i like it

[james111] 05/2/2004 18:51

has anyone any ideas whats going on.

[rivaldo] 05/2/2004 09:52

I wonder if this is anything to do with it - i.e good sector fundraising news involving Merlin? I took profits today on a large part of my holding - would have been happy to hold longer with solid news on Ark or anything else, but I felt this might be a bubble and got a nice price. I'll be back for more if there's another slide. Mind you, the volumes still support the theory that there's someone snapping up loose shares, and as I write the price is stable:

"Cyclacel completes €30.9 million private placement
5 February 2004 9:00
By Ruth Bojer
Cyclacel, a UK-based biopharmaceutical company, has completed a €30.9 million series D private placement with a global syndicate of new and existing institutional investors. The funds will be used to advance development of the company's two clinical stage drugs as well as progressing its pre-clinical drug portfolio."

[rivaldo] 05/2/2004 08:53

Good point - no takers on the early mark-up, so the market forced to keep going up? Or maybe there's sustained buying out there (as yesterday)
to be reported later.

I've done a trawl of the investee company web sites - no news today. There's surely no smoke without fire though.

[one for the money] 05/2/2004 08:46

It seems to have gone up in stages this morning - not the usual single MM hike at open if something is going on behind the scenes

Cheers
john

[one for the money] 05/2/2004 08:42

Absolutely none! But I'm not complaining.

Cheers
john

[rivaldo] 05/2/2004 08:26

Erm...hello?!!

Anyone any clues?

[rivaldo] 04/2/2004 19:12

3m shares traded today, with late buying interest in large lots (by BNX's standards) around the 1.6p area. I'm now even more convinced (along with Simon) that something's happening. Let's wait and see what pans out.

In the meantime, more good news from Morphochem today:



"February 4, 2004

Boehringer Ingelheim enters into multi-target drug discovery collaboration with Morphochem

Munich, Germany, 4th February 2004...Morphochem AG, a leader in the evolutionary discovery of small molecule drugs announced that it has entered into a research collaboration with Boehringer Ingelheim, a leading pharmaceutical company with a focus on human pharmaceuticals and animal health. Morphochem will apply its drug discovery engine MOREsystem™ to the discovery and optimization of novel structures with activity against several undisclosed novel human targets.

Financial terms of the collaboration were not disclosed.

MOREsystem™ combines multi-component reaction chemistry (MCR) with Morphochem's proprietary software MolMind™ that is based on genetic algorithms using in-silico and biological feedback. This drug discovery engine generates a range of target–directed virtual small compound libraries for hit and lead discovery in parallel, from which suitable compounds will be chosen for synthesis and biological testing. This approach reduces the attrition rate for drug candidates and allows patents to be filed early for novel compounds. Initial in-silico model building will be facilitated by Morphochems novel proprietary 3D shape similarity tool AutoPhore®. This will enable rapid access to bioisosteric solutions, scaffold hopping and provide a realistic estimate of the probability of the projects success.

Dr Peter Seufer-Wasserthal VP Business Development at Morphochem commented:
"We are very pleased to collaborate with Boehringer Ingelheim and to contribute towards their drug discovery and development programs. This collaboration endorses the value of our novel approach. Compounds can be checked for fit with a target and then further refined using evolutionary algorithms so that potential drug candidates can be pre-optimized for biological activity and drug potential before synthesis is started.""

[simonevans] 03/2/2004 20:55

Interesting - the words "for the time being" say something to me.......

The CEO has gone - well that's probably not a bad thing as he costs a fair whack and they haven't done anything much yet. As previously mentioned, I think that this co. will change its strategy again sometime soon - maybe for use as a shell for one of it's investments or another biotech co. From day one the strategy has not looked great and you supsect that this co. will be used for something else.

I agree with Rivaldo that the share price suggests something may be happening. Tempted to add a few more if the share price drops back.

[russianlinesman] 03/2/2004 12:35

surely means no prospect of an Ark float in the foreseeable future then, i.e. what they are saying is we have not got enough money to make new investments and not likely to have any time soon, so we need to cut costs.

As previously discussed, am with OBR on the management. Roberts of course is old Mountcashel/Abingdon who are equally opaque.

I would expect this to drift down to 1p again fairly quickly (and maybe even lower), as really only the prospect of a soonish Ark float was holding it up.

[old boy returns] 03/2/2004 11:44

Have sadly had to conclude that I don't trust the management (and really don't like their warrants packages) so have taken advantage of this weeks spike to exit at a small profit. Good luck to those who are hanging on.

[rivaldo] 03/2/2004 11:39

Well, well - could this be the reason for the bit of activity recently? Could be any number of reasons for this:
- existing investments have good prospects and so warrant further investment
- existing investments looking dodgy and need further funds. Seems unlikely - with £1m in the bank, why throw good money after bad?
- cutting down even further on overheads to preserve cash
- perhaps a smokescreen and an eventual use for the company as a shell for something else
- note that they say "medium term", not long term : they're obviously mindful of trying to add value reasonably quickly

Any further suggestions?

"Strategic Review and Directorate Change

Following a strategic review the Board has concluded that, for the time being,
funds currently available to the Company will be utilised in continuing to
support those companies in the portfolio that the Board consider to be capable
of realising value in the medium term, rather than investing in new unquoted
opportunities. The Board will seek to optimise short term returns by continuing with the Company's trading activities in quoted securities.

In view of this strategic change and the consequent reduction in the Company's
day to day activities, Graham Wylie, Chairman and Chief Executive, will be
leaving the Company and therefore resigns from the Board with immediate effect.

The Board would like to express their thanks to Graham for all his efforts in
establishing the business and in taking the Company to flotation and beyond and
wish him well for the future.

Christopher Roberts, currently Finance Director, has agreed to take over as
Executive Chairman."

[james111] 02/2/2004 21:31

always good when vol builds up, even better when the stock is rising.
for me it says hang on in.

regards james

[rivaldo] 02/2/2004 18:52

Lizzie 11, have you heard anything?

Another interesting day - 1.4m shares traded, with two 250,000 buys at 1.5p at the end of the day. With no apparent reason for activity, all the recent buying is both intriguing and encouraging.

[rivaldo] 14/1/2004 23:09

Have a look at the header post blackbear - BioVex is one of BioNex's investments.