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Arix Bioscience PLC on Thursday announced its net asset value had increased, but that it plans to launch a strategic review concerning issues like its discounted share price. The London-headquartered venture capital firm, focused on biotechnology companies, said its unaudited estimated NAV at June 30 was £1.86 per share, up from £1.75 per share - audited - at December 31. Shares in Arix Bioscience were up 6.5% at 104.41 pence late on Thursday in London. Total NAV rose to £241 million from £226 million on the same dates, although its net cash balance decreased to £101 million from £122.8 million. However Arix Bioscience was cautious looking forward, saying: ‘As noted in the annual report published on [April 25], the recent period of prolonged uncertainty, volatile market conditions and depressed biotech valuations have resulted in fewer new investments this year with an increased focus on cash conservation.’ The firm insisted it still has faith in its ability to deliver ‘attractive’ returns in the long-term future, but added that it was ‘conscious of the share price and the significant discount to the company’s [NAV] per share, despite [its] significant net cash balance.’ In response, Arix said it has launched the strategic review, although it cautioned that there is no certainty any changes will result from this. The review will include consideration of Arix Bioscience’s investment and realisation strategies; its capital allocation and shareholder returns policies; and a tax-efficient wind-down of the company. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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