LONDON, April 18, 2017 /PRNewswire/ --
We are initiating coverage on Arix Bioscience following its February 2017 IPO that raised £113m. Arix is a new transatlantic life sciences portfolio company drawing from managerial expertise at all levels of the pharma industry to engage in opportunities ranging from seed investing to public equity. It draws on a network of deal sources established through agreements with academia, life science accelerators, other funds, and through partnerships with big pharma. The company is trading at a modest 11% premium to our initial asset valuation of £172m or 179p/share.
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Using a risk-adjusted NPV analysis, we arrive at a valuation of Arix's assets (£133.2m cash, £27.3m portfolio, £11.4m other assets) of £172m or 179p/share. The value of the portfolio is nearly 100% above the cash spent to date (£13.7m). The stock trades at an 11% premium to this value, which is modest considering the strength of the company's management and platform, as well as the quality of the deals. We expect to update our valuation with the announcement of new deals.
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All reports published by Edison are available to download free of charge from its website
http://www.edisoninvestmentresearch.com
About Edison:
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
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We are initiating coverage on Arix Bioscience following its February 2017 IPO that raised £113m. Arix is a new transatlantic life sciences portfolio company drawing from managerial expertise at all levels of the pharma industry to engage in opportunities ranging from seed investing to public equity. It draws on a network of deal sources established through agreements with academia, life science accelerators, other funds, and through partnerships with big pharma. The company is trading at a modest 11% premium to our initial asset valuation of £172m or 179p/share.
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(Logo: http://photos.prnewswire.com/prnh/20130417/608168 )
Using a risk-adjusted NPV analysis, we arrive at a valuation of Arix's assets (£133.2m cash, £27.3m portfolio, £11.4m other assets) of £172m or 179p/share. The value of the portfolio is nearly 100% above the cash spent to date (£13.7m). The stock trades at an 11% premium to this value, which is modest considering the strength of the company's management and platform, as well as the quality of the deals. We expect to update our valuation with the announcement of new deals.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website
http://www.edisoninvestmentresearch.com
About Edison:
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
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Maxim Jacobs
Edison Investment Research
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SOURCE Edison Investment Research
