Arix Bioscience has announced that it has commenced a strategic review of its strategy and assets to evaluate how it can best deliver value to its shareholders. This review will consider various options, including the potential wind-down of the company.
As a biotechnology-focused investment company, Arix Bioscience aims to generate significant returns for its investors. However, due to recent uncertainties, volatile market conditions, and depressed biotech valuations, the company has decreased its new investments this year and shifted its focus towards cash conversion.
Despite these challenges, Arix Bioscience believes it is still well-positioned to provide attractive long-term returns. Nevertheless, the company acknowledges the significant discount to its net asset value of GBP1.75 per share, considering its substantial cash balance of £105 million ($136.4 million).
This discount has emerged during a period of heightened investor risk aversion, according to the company.
During the strategic review, Arix Bioscience will thoroughly assess its investment and realization strategies, capital allocation, shareholder returns policies, and the potential for a tax-efficient wind-down of the company.
It is important to note that there is no certainty regarding the outcome of this review.
As of 0817 GMT, Arix Bioscience shares have increased by 7.1% to 105.0 pence.