Ip Share Discussion Threads

[scubadiverr] 05/5/2021 19:46

The stampede of pandemic winners to the stock market inspires wariness. Oxford Nanopore, which plans to go public this year, is one such beneficiary. The spinout from Oxford university is responsible for a fifth of the international sequencing that tracked coronavirus mutations.That has drawn attention to a company with a lot of potential in a wide range of applications. An initial public offering could value it at significantly more than the £2.5bn price tag from a private funding round on Tuesday.Started in 2005, Oxford Nanopore has benefited from the support of long-term shareholders. However, the backing of Neil Woodford is a complicating factor. The funds business of the prominent UK asset manager folded in 2019 following dire performance.The stampede of pandemic winners to the stock market inspires wariness. Oxford Nanopore, which plans to go public this year, is one such beneficiary. The spinout from Oxford university is responsible for a fifth of the international sequencing that tracked coronavirus mutations.That has drawn attention to a company with a lot of potential in a wide range of applications. An initial public offering could value it at significantly more than the £2.5bn price tag from a private funding round on Tuesday.Started in 2005, Oxford Nanopore has benefited from the support of long-term shareholders. However, the backing of Neil Woodford is a complicating factor. The funds business of the prominent UK asset manager folded in 2019 following dire performance.A successful float would benefit Schroder UK Public Private, the "patient capital" investment trust Woodford formerly ran. But there will be anger from former investors in his defunct income fund. Its 6 per cent stake in Oxford Nanopore was bought by Nasdaq-listed Acacia Research, which put a valuation of just $111m on it in its latest accounts. Woodford, who announced a controversial plan to restart his career in February, is working with Acacia as an adviser.Oxford Nanopore's decision to join the London market rather than Nasdaq will also hamper the valuation. But assume, as Jefferies does, that sales more than doubled to £115m in 2020. Even if Oxford Nanopore was valued at half the multiple of peers like US Pacific Biosciences, it would be worth £3.6bn.That is less than a tenth of the size of San Diego's Illumina, the global leader. Oxford Nanopore argues its sequencing technology - which monitors changes to an electrical current as nucleic acids are passed through a tiny hole - beats traditional camera-based approaches. Sequencing can be done quickly and cheaply by miniaturised devices. Accuracy has been a weak point, but is improving.Investors should focus on the science, setting aside market froth and the Woodford connection. At the right price, Oxford Nanopore's plan to facilitate the analysis of "anything, by anyone, anywhere" would be worth investing in.

[robertspc1] 05/5/2021 19:25

Directors will act in long term interest of shareholders. Looking at the performance of many overhyped SPACS etc, I'm happy they are going with London. There is a wall of money here waiting for decent long term growth stocks not short term trades

[robertspc1] 05/5/2021 19:21

Thanks but think this is an old article ... there was another today

[eeza] 05/5/2021 17:21

Chart suggests it's heading to 120p support.

[wba1] 05/5/2021 17:02

I suspect the IP share price will trade in a range (say 120-135) until one of two things happens; either the Oxford Nanopore float at a value materially above the £2.3bn currently assumed in IP's nav or a significant lift in published nav at half year if various other holdings (such as Artios and Featurespace) are substantially revalued (along with the benefit of today's sales, increases in quoted prices for holdings and some other smaller effects)

In the light of the importance of the coming Oxford float I am still at a loss to understand the decision to float in London instead of on Nasdaq. If it is a case of being leant on by Boris or his cronies it is a disgraceful abandonment of fiduciary duty by the directors. If there is another reason I would like to hear the explanation. I am open to a rational explanation (such as being blackmailed with contracts or concern about Nasdaq competitors) but the absence of any sort of explanation just creates a bad smell. I wonder if any thought may still be given to a simultaneous float on both? Rare (I recall it happening about 20 years ago with tech stocks) and it increases the float costs, but it would be worth it if it increased the attraction to global investors and the price.

[eeza] 05/5/2021 16:45

Oxford Nanopore picks London for latest tech IPO
DNA sequencing group expected to be valued at £4bn to £7bn in one of largest UK floats this year, with analysts valuing it at between £4bn to £7bn. 
Oxford Nanopore was valued at £1.7bn in a funding round last year, but is held in the books of the IP Group at £2.3bn.
Berenberg said the group “could comfortably reach a valuation above £4bn at its next funding event, particularly given the company’s value appreciation and technological progress compared with those of publicly listed peers”.
Oxford Nanopore has benefited from a surge in demand during the pandemic for its services that spot and track coronavirus mutations. It said that about a fifth of the Sars-Cov-2 virus genomes were generated on one of its devices by scientists from more than 85 countries.
Scientists are also using its DNA sequencing technology across a range of research from human genetics and cancer research to crop efficiency and food security. Oxford Nanopore has created portable DNA/RNA sequencers that can fit in a pocket and can be used for population-scale human genomics. 

[robertspc1] 05/5/2021 16:21

Anyone able to post today's FT article on ONT ? Or at least summarise it thanks

[benchmark] 05/5/2021 10:27

bamboo1 - thank you very much for that

[bamboo2] 05/5/2021 10:19

wba, agree, milestone payments are not certain, therefore cannot be included in current NAV

Benchmark, in basic terms, a gap is defined as a space on a candlestick chart that is lacking any price action. There are different types, and they are very useful for a TA perspective. The gap I refer to appeared on both the mid price based chart and the last market based chart.

The last market price based chart is the definitive one to use. This had trades yesterday that filled the gap. I will try to post a chart later if advfn let me.

Edit, chart added showing filled gap.



Bench, This is a mid price based chart. It shows the gap which is now filled.

I normally stick to the daily scale when charting, so any time I refer to gaps, they are the ones visible on the daily scale.

[wba1] 05/5/2021 10:12

Thanks bamboo; fwiw I do similar and had a nav (after today and including movement in quoted share price of holdings but excluding anticipated uplifts due to financing and other developments such as Artios and any Oxford uplift) of circa 135. This makes me think the true underlying vale is well in excess of 150. One thing I am unclear on is whether (and how) the uplifts in value quoted for the two sales today reflect milestone payments as well as up front payment? Obviously if it does not carry anything for the milestone payments this is a further probable boost to nav (albeit with an uncertain value). My 135 assumes no value of such payments.

[benchmark] 05/5/2021 10:08

bamboo2 - regarding your post 1058. Forgive my ignorance on this matter but how do you know when the gap has been filled? By analysis of charts ..or Level 2 trades ..or some other method?
Thanks

[bamboo2] 05/5/2021 09:47

eeza, thanks for xd info.

wba, fwiw, I keep a rough idea of current NAV.

Excluding any uplift from the ONT flotation, but including the recent news it is approx 138

[eeza] 05/5/2021 08:50

XD Thurs next week - May 13.

[bamboo2] 05/5/2021 08:45

Wet, The ONT website news section says that there are no changes to the plans for flotation.

Management certainly seem geared towards doing deals. It's particularly good to see an interest maintained in terms of additional future milestone payments.

[wetpantz] 05/5/2021 08:35

the 195M ONT fundraising is odd. I suspect either they are urgently building another factory (possibly overseas) to meet demand or the flotation will be delayed or maybe they have an acquisition target. Uncertainty over reasons for fundraising seems to have hit IP's share price

[p1nkfish] 05/5/2021 08:33

Monetary flows over ride any news, good or bad.
A shift occurring.

[bamboo2] 05/5/2021 07:55

Thanks p1nk, Mas.

£54m added to NAV

[bamboo2] 05/5/2021 07:36

5 May 2021

IP Group plc - Portfolio company Kuur Therapeutics Ltd acquired by Nasdaq-listed Athenex Inc for up to $185m (GBP133m*)

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, is pleased to announce that portfolio company Kuur Therapeutics Ltd ("Kuur") has been acquired by Athenex, Inc., (NASDAQ: ATNX), a global biopharmaceutical company, for a total potential consideration of $185 million.

Under the terms of the agreement, Athenex will pay $70 million (GBP50 million*) upfront to Kuur shareholders and its former employees and directors, comprised primarily of equity in Athenex common stock. Additionally, Kuur shareholders and its former employees and directors are eligible to receive up to $115 million (GBP83 million*) of milestone payments, which may be paid, at Athenex's sole discretion, in either cash or additional Athenex common stock (or a combination of both).

As a result, and following conversion of loan-notes made available to Kuur in 2019 and 2020, IP Group will receive GBP30 million* ($42 million) in Athenex stock and is eligible to receive up to a further GBP52 million* ($72 million) in milestone payments in cash or stock. IP Group's holding in Athenex stock will be subject to typical lock-up provisions. The Directors anticipate that the transaction will result in an increase in the Group's net asset value of approximately GBP26 million*.

Dr Sam Williams, Managing Partner, IP Group Life Sciences, said: "This is an excellent outcome for Kuur's shareholders, partners and management team. Most importantly, with the backing and support of Athenex, Kuur's pipeline of innovative cell-therapies for the treatment of cancer now has a superb chance of fulfilling its clinical promise. We're particularly proud of what the Kuur management team has been able to achieve since taking over the company a little over a year ago, moving a second product into the clinic, achieving striking clinical response rates and securing a highly satisfactory exit."

[bamboo2] 05/5/2021 07:34

5 May 2021

IP Group plc - Portfolio company Inivata acquired by Nasdaq-listed NeoGenomics

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, notes that portfolio company Inivata Ltd ("Inivata"), a leader in liquid biopsy, has announced that NeoGenomics, Inc (NASDAQ: NEO. ) has agreed to acquire Inivata.

The acquisition follows a $25 million equity investment by NeoGenomics in Inivata in May 2020, at which time NeoGenomics was granted a fixed price option to purchase the remainder of Inivata for $390 million.

As a result, IP Group will receive approximately $91 million (GBP66 million*) in cash or, potentially, NeoGenomics stock, at the Group's election and if certain other conditions are satisfied. The Directors anticipate that the transaction will result in an increase in the Group's net asset value of approximately GBP28 million*. Completion of the transaction is subject to US anti-trust filing.

Dr Craig Richardson, Partner, IP Group Life Sciences, and IP Group's representative on the Inivata Board, said: "This is an excellent outcome for Inivata's shareholders and management team. As part of NeoGenomics, Inivata's innovative liquid biopsy products now have a superb chance of fulfilling their full potential and, most importantly, improving the detection and treatment of cancer, thereby improving patients' lives. In addition, this exit represents a very good financial result for IP Group."

Inivata will remain a separate business division alongside NeoGenomics' growing clinical, pharma and informatics divisions. Current Inivata CEO Clive Morris will become the President of Inivata and will report to Mark Mallon, CEO of NeoGenomics.

* GBP equivalents calculated using 1.39 USD/GBP.

[p1nkfish] 05/5/2021 07:11

2 interesting exits.

[masurenguy] 05/5/2021 01:15

Hope that your top-up timing is good bamboo2 ! 👌

It’s time for Nanopore to come to market

The Oxford Nanopore flotation, if it ever happens, will be quite a moment. Ministers and City leaders were gushing over the Deliveroo float in March (right until it flopped) and Nanopore is more exciting from a technology point of view. Being able to read the genes of any living tissue on a portable device smaller than a Mars bar opens up a cornucopia of potential customers — in medicine, food production and scientific research. Nanopore not only has pioneered this technology but also is producing the machines in a British factory.

Strangely, then, having announced only a month ago plans to float in the second half of this year, it has decided to do another round of private funding first. The £195m raised will surely provide all the cash it needs for at least another few years. Even in 2019, a year of heavy costs, losses were only £72m. The deal is another valuation point. The injection of capital from M&G, Temasek and others values Nanopore at £2.5bn, nicely higher than the last valuation point in 2020 of £1.9bn. Big names such as M&G will help to reassure investors in any flotation later in the year, but, with bags of cash under its belt, Nanopore will need little new capital. The float may be more about providing an exit to investors or a more liquid currency for acquisitions or bonuses. The sooner Nanopore secures a listing, with the accompanying transparency, disclosure and liquidity, the more confident we can be that it really is a potential world-beating gem and not a capital-guzzling fantasy.

[bamboo2] 04/5/2021 17:14

Mas, thanks for the report.

For info,

ONT at £3.9bn is a NAV of around 65p per IPO share.
NAV at end 2020 had ONT valued at 32p per share.

ps, added quite a few following the gap fill.

[masurenguy] 04/5/2021 17:00

If the ONT IPO was valued at £3.9bn then the IPO 14.5% stake would be worth £565m !

M&G has ploughed £35m into Oxford Nanopore Technologies, the former Neil Woodford favourite that is preparing for one of the largest flotations in London this year. The DNA sequencing technology start-up has announced plans to list on the London Stock Exchange in 2021, with Jefferies and Berenberg valuing the initial public offering (IPO) at $5.4bn (£3.9bn). Based on its last financing round more than a year ago, investors latest valuation of the company was £1.9bn, however.
Citywire: 5 May 21