Remember that IPO also has debt. The cash figures are gross not net. |
"As at 31 August 2024, IP Group had £183.7m gross cash and deposits while the Group's holdings in listed companies were £128m, which together represented approximately 76% of the Group's market capitalisation at that date."
As of today therefore...
Cash - 183.7m
Featurespace cash - 134m
Listed companies - 126m
ONT price increase vs. 31 Aug - 45m (I think)
Total --> 488.7m
Market cap at 50p is roughly 500m. I know that the market's mood re. IPO can change quickly, but that's crazy... |
 Enterprise Therapeutics Granted ‘Rare Pediatric Disease Designation’ in the US for Novel Cystic Fibrosis Investigational Therapy ETD001
26 Sep 2024
ETD001 is a novel, first in class blocker of the epithelial sodium channel (ENaC) aimed at treating people with cystic fibrosis without current effective therapies
ETD001 commenced Phase 2 clinical trials in July 2024, expected to complete in 2025
BRIGHTON, England--Enterprise Therapeutics Ltd (Enterprise), a biopharmaceutical company dedicated to the discovery and development of novel therapies to improve the lives of those suffering from respiratory disease, today announced its novel cystic fibrosis (CF) investigational therapy, ETD001, has been granted ‘rare pediatric disease designation’ (RPD) in the US by the Food and Drug Administration (FDA).1
ETD001 is a low molecular weight compound with first-in-class potential, which targets the sodium channel (ENaC) in the airway epithelium to increase the hydration and clearance of mucus. Enterprise announced dosing of the first person with cystic fibrosis (pwCF) in its Phase 2a trial of ETD001 on 23rd July 20242. The trial aims to deliver clinical proof-of-concept and to assess the safety and efficacy of ETD001 in the ~10% of pwCF with the highest unmet medical need. The study will assess lung function (FEV1) in pwCF who are either ineligible for or are not receiving CFTR modulator therapy.
The RPD designation was based on the assessment of CF as a serious or life-threatening disease, primarily affecting individuals aged from birth to 18 years.
CF is estimated to affect over 100,000 people worldwide, with an average life expectancy of only 50 years. Failed mucociliary clearance and mucus congestion in the lungs leads to cycles of infection and inflammation and an ongoing decline in lung function. Increasing fluid volume in the lung by inhibiting ENaC with ETD001 will hydrate mucus, improve clearance, reduce mucus congestion, and is expected to drive substantial improvements in lung function. ETD001 has previously demonstrated a well-tolerated profile in healthy subjects in a Phase 1 trial and has been shown to be long-acting in pre-clinical studies3.
Dr John Ford, CEO, Enterprise Therapeutics, said: “We’re delighted with the FDA’s decision and would like to thank the Office of Pediatric Therapeutics and the Office of Orphan Products Development for their consideration. As we progress though our Phase 2a trial of ETD001, this RPD designation will further support our mission to advance this novel approach for treating pwCF with the highest unmet medical need, as rapidly as possible.”
Annabella Amatulli, Head of Regulatory Affairs, commented: “We are thrilled to be granted the RPD designation by the FDA, a regulatory framework intended to encourage and accelerate innovative therapies, in recognition of the significance of our programme in addressing an unmet medical need. The RPD designation will give Enterprise access to valuable incentives and support from the FDA during the development of ETD001, including the eligibility to request a Priority Review Voucher (PRV) at the time of marketing approval.” |
SI, you've lost me there.
=========================
IUG Capital reduction process under way.
Should have some idea of the total return around 18-20/11/2024 |
Lol bamboo is smoking his dirty undies. |
Hope it's not just play.
Tender perhaps to mop up stock more quickly. |
134m more cash to play with |
SP rising above rising 50 and 200sma's.
Technically should be very positive.
If price can close above 55, recovery to 70 in sight. |
Crazy value here along with chry. |
Excellent news, well done IPO.
Excess cash is a good problem to have to solve.
A happy shareholder. |
IP Group PLC (LSE:IPO) is set to realise a 485% return on its investment into Mike Lynch-backed fraud-detection group Featurespace following an acquisition by global payment giant Visa.
Link for complete article
FTSE 250-listed IP Group will receive £134 million in cash following the acquisition, making for a bumper return from £22.9 million worth of investments over seven financing rounds.
Currently its largest shareholder, IP Group first invested in Featurespace in 2012.
Greg Smith, chief executive of IP Group, said: “Having supported Featurespace for over ten years, we are delighted with this record exit, which represents an excellent financial return for IP Group.
“Our congratulations go to Martina King, Dave Excell and the Featurespace team.
“This transaction, which follows the sales of Garrison this year and Wave Optics in 2021, further validates IP Group’s model and our expertise in identifying and supporting businesses to successful exits.”
Following British tech entrepreneur Mike Lynch’s tragic death in August, Featurespace stated: “It is a high statistical probability that Featurespace wouldn’t be a thriving technology company without Mike… Mike’s personal investment in Featurespace supported the development of an invention that has proved fundamental in the progress of AI.” |
Now the Featurespace news is public, I guess we can assume the 'closed period' [if any] is over and management should be able to announce the start of the next buyback. |
Price dropping back as people have been stuck here for sooo long! So some profit taken
Not me, nothing sold!
D |
The IUG deal is expected to be confirmed in September/October 2024, which leads to another cash payout for IPO of 20% of up to £40m.
IUG is expecting to distribute a substantial amount of the proceeds. |
It's interesting that the datum used for the cash and listed assets on the BS was 31st August. ONT was priced at about 120p at that time, now 160p. |
Great to have this confirmed.
Well done those of you who got the sums correct!
Putting this here for future reference using 'search thread'.
=============================================================
IP Group plc - Visa to acquire portfolio company Featurespace
IP Group to receive £134m cash; £51m uplift in NAV from 31 December 2023 valuation[1]
IP Group plc (LSE: IPO) ("IP Group" or "the Group"), which invests in breakthrough science and innovation companies with the potential to create a better future for all, is pleased to announce that Visa has signed a definitive agreement to acquire portfolio company Featurespace for an undisclosed sum.
As a result, IP Group expects to receive £134m total cash for its holding in Featurespace. Of this, £119m will be received on completion and £15m will be subject to deferral, as is typical for an acquisition of this type. The Directors anticipate that the transaction will result in an increase from the Group's FY23 net asset value of approximately £51m1 (a 70% increase), of which £37m1 was recognised in our HY24 results. This further evidences the appropriateness of the Group's approach to portfolio valuation. The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals, and the Group will provide a further update following completion.
The Group was the first institutional investor in Featurespace in 2012. It has invested a total of £22.9m over seven financing rounds and is currently Featurespace's largest shareholder.
Greg Smith, Chief Executive of IP Group, said: "Having supported Featurespace for over ten years, we are delighted with this record exit, which represents an excellent financial return for IP Group. Our congratulations go to Martina King, Dave Excell and the Featurespace team. This transaction, which follows the sales of Garrison this year and Wave Optics in 2021, further validates IP Group's model and our expertise in identifying and supporting businesses to successful exits."
As at 31 August 2024, IP Group had £183.7m gross cash and deposits while the Group's holdings in listed companies were £128m, which together represented approximately 76% of the Group's market capitalisation at that date.
[1] Net of carried interest and deal costs |
And don't forget ONT, the jewel in the crown. Highly undervalued, if that's not too oxymoronic...
That said, there's so much despondency/lack of belief around the BoD's ability or willingness to drive shareholder value that I suspect many will be selling on any up swing. Special or renewed dividends might help rekindle support but otherwise it's been hard to justify holding a share that persists in going nowhere despite share buy backs. |
The cash means options. It should allow them to play hardball on an other portfolio companies for sale. Plus potentially finance any of the biotechs to a later stage. |
WShak, what's your assessment of Nav, if not identical to IPO's given estimation? |
It's worth much more than that in practical terms, IMHO.They now have a huge amount in cash relative to their market cap. Sure, they can pay some debt off, but they've already said they will look to buy back shares until the discount is less than 20%.Why would they do anything other than a huge tender offer now?NAV will only increase further as they buy the shares back at a discount. |
Not only does the deal add to NAV, but the market obviously places a much smaller discount on cash than it does on a PE asset that can't really be valued independently. (assuming management says the right things about managing that cash) |
The deal adds £51m, about 5p to NAV, above FY23 (but less in H1 this year). |
This is transformative in terms of buybacks.They've said they will buy back up until only 20% discount if able to. |
I'd guess as the group has a nav around 115p. And it's proving its worth, maybe the discount isn't warranted. But who knows, share prices rarely make much sense to me. Lots languish at rock bottom prices only to get taken out on the cheap.Good luck to all those long term holders. |
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