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Definitely explains the backdrop to raising funds. Maybe the BoD are not incompetent, are not trying to stitch us up and are not full of self-interest. Just desperate to succeed with very little financial support available.
All of the de-listing CEO's/BoDs cant all be incompetent fools can they. No wonder GGP are also looking at a similar move.
Courtesy of someone on the SND board
However, rumours surfacing last week in the City indicated urgent regulatory modifications being fast-tracked by the UK financial watchdog to stem the exodus and enhance the country’s appeal for business and investment. So it’s worth watching this space.
https://www.ccn.com/news/business/wall-stree-stock-exchange-undervaluation/
Interesting article, George. It echoes another post I put up the other day and gives some support to the notion that the city wasn't keen to help us raise funds thereby leading to the RF situation.
Mark Slater, the chairman of Slater Investments, a fund manager that has a bias towards smaller listed companies, said: “The narrative around the UK is focused on FTSE 100 companies moving their listings overseas, but underneath that the market is extremely unhealthy. The small caps and Aim are being hollowed out. The market is structurally very unsound and I don’t think that’s appreciated. There’s nothing replacing these smaller companies.”
A dearth of new companies coming to the market through initial public offerings prompted a stark warning last week from Charles Hall, the head of research at Peel Hunt, another broker, that the FTSE Small Cap index, a more senior marketplace to Aim, “will cease to exist by 2028 at the current run-rate. The pace of de-equitisation is relentless and will inevitably continue, given the low valuation accorded to UK companies.”
The problem of weak valuations is behind C4X’s decision to take the company private at a meeting on Monday. Clive Dix, 69, its chief executive and the former deputy chairman of the Covid-19 vaccine taskforce, said: “We believe we should be valued at least five times, if not ten times what we are and therefore raising money at ten times the value would be much simpler. I don’t think it’s to do with the quality of the companies and the science. I just think that the environment, it doesn’t work. There’s no liquidity.”
Yet Stuttard said the wider issue of so-called de-equitisation was something facing stock markets globally. “I think one of the reasons it’s probably more visible at the moment is because markets are not having the same level of top up of new companies coming through.” He added, however, that the “pipeline of initial public offerings is picking up”. Indeed, Helix Exploration and European Green Transition both joined Aim this week and their share prices have risen. Stuttard also noted that 37 per cent of all equity capital raised in European Union growth markets in 2023 had been raised on Aim.
Despite his confidence, he wants to see pension funds and other big institutional investors start taking on more risk again. The biotechnology sector is particularly exposed to the lack of appetite for risk, an issue that, according to Dix, has meant Aim has “just never ever worked as the place for growth biotech companies that are very cash-hungry in their early days”.
Despite striking three big deals with leading pharmaceuticals companies, including AstraZeneca, Britain’s biggest drugs group, C4X shares are down more than 90 per cent since they were listed ten years ago, valuing the company below £23 million. Similarly, shares in Redx, a cancer drug developer, are down by more than 90 per cent from their 2015 listing, despite establishing four “major” partnering deals over the past five years.
Daniel Nickols, an investment manager focused on UK small and mid-cap equities at Jupiter Asset Management, said regulators, policymakers and
London’s Alternative Investment Market may not generally command the attention of its bigger sibling, the main market of the London Stock Exchange, but all eyes will be on Aim next week. Three companies are looking to delist from the junior market and their plans are being put to investors in a series of shareholder votes.
Significantly, two involve a pair of Britain’s leading biotechnology players. Both C4X Discovery and Redx Pharma believe that they can raise more money as private companies.
Their decisions to quit Aim would be notable enough in themselves, but they have shone a spotlight on structural weaknesses in the small-cap market and have rung alarm bells about a broader malaise. Suddenly, concerns have switched from the recent flight of big listed companies towards the New York Stock Exchange, including the likes of Flutter Entertainment, the owner of Paddy Power, and CRH, the building materials supplier, and to what one leading fund manager has called the “hollowing out” of the junior market.
The number of companies listed on Aim, which turns 30 next year, has more than halved from a high of 1,694 in 2007 to 753 last year, the lowest level since 2002, according to stock exchange figures. The total is set shrink further, with others planning to delist includinge-therapeutics (which plans to raise £28.9 million from its two main shareholders and to explore listing on New York’s Nasdaq exchange), Byotrol (a maker of hand sanitiser) and Molecular Energies (citing the “current dysfunction of the London markets with regard to small/micro-cap companies”). LoopUp, the video conferencing software specialist, delisted yesterday. And there may be more to come. One well-placed source said: “There are others looking at it. I’m aware of at least four others.”
The problems are faced across sectors, according to Dan Mahony, chairman of the UK’s BioIndustry Association, the trade body, who was appointed as the government’s life sciences investment envoy in 2022. “It’s a problem generally,” he said, exacerbated in life sciences “because the requirement of capital is so high”……
Thanks hot. Explained in layman terms.... appreciated.
Thanks hot. Explained in layman terms.... appreciated.
OFFS!! "further along the road than P1b"
Sorry, should read "...further along the road than P1a"
Evening Celtic - the SAD/MAD/Food trials are all about ensuring there are no nasty side effects based on varying dosage. So far the BoD has only been able to state, "... interim data shows that levels of SDC-1801 in blood are already in the expected therapeutic range, and achieve concentrations greater than those predicted to reduce signalling of cytokines dependent on TYK2 and/or JAK1 activity by 50% for a sustained period following once daily oral dosing. Safety data remains blinded, but no serious adverse events have been reported to date."
So far, so good.
It's only once they complete the MAD trial and get the safety data that they can start testing 1801 in psoriasis patients. That would be the P1b part of the trial however the BoD have said they are looking to skip 1b and head for Phase 2a (broadly speaking they serve the same purpose and would have the same number of patients). The bonus for us is it accelerates things in the sense that P2a is further along the road than P1a and so a successful P2a would result in 1801 having a much higher monetary value compared to completing a P1b.
As far as I can tell the final volunteers for P1a were recruited at the start of Jan and I think we're looking at 2mths from them starting the trial (screening etc.) and the follow-up (any side effects?). That suggests we're maybe now into the window where the safety review committee are looking at the data and deciding if the P2a trial can go ahead and what dose should be used.
The trial will have created a huge amount of data and isn't something that can be skimmed through to arrive at a judgement. No idea how long it'll take to get a verdict but we must be talking a matter of only a few weeks.
Hi there. The next data that is due out on our tyk2 is for absorption and excretion properties ? Nothing about it's effectiveness in psoriasis ? Thanks all for answering this.
....so far. We may see some traders getting out this pm and/or some short positions closing ahead of the weekend and possible news next week. Nice to see the tide turning.
On a lighter note:
A man went to his Doctor and said" Doc, I got a very nasty reaction from that special hemorrhoids cream you prescribed for me.
The Doc said "Oh! I am sorry to hear that. Where, exactly, did you apply it"
"On the bus"
Good weekend all
Pretty sure only the 4 no. at 14:02p were sells.
Nice to see my buys at placing price now up 45%
Long may it continue with trials starting
We need momentum, not director buys. If a director buys, it means they don't know of any impending news. They director buys in the wrap probably means no price sensitive news until May. We might get a trial complete RNS, which in itself is good news but no meat on the bones until the statuary period is over. I think it is 30 days?
The BOD will not buy in the open market - They only bought token amounts in the PLACING which was supposed to be to fund their own company due to their managerial mistakes (TM = 5K and JR = ZERO; 22k each taken as shares rather than salary when they both had 50K pay rises) .. Most LTHERS earn less and bought more
Think they prefer the free OPTIONS route;
Winge over .... JR not purchasing was the reason I did not participate in the PLACING ; but 'throwing my toys out of the pram' I did buy 150K additional shares for my ISA at 11p'ish ( funded by selling PYC)
Why on earth would the BoD buy on the open market when they could put the money directly into the business where it can contribute to progressing 1801/2?
Looks like bed and ISA
Happy to see buys coming in , current buy price 14.575 .
Good idea will give management a nudge to buy in the open market
My purchase of £1994 was a purchase not a sale
Mainly all buys today
Lets see this share motor from its very oversold basis
Be interesting to see the BOD s response to all their share options under water
Their would be a major outcry if they were to award them selves new shareoptions
They should go into the market to purchase shares at these very low levels, which can only help drive the sp forward
GLA
D:
Google Finance showing up 17% and near enough 15p a share.
Showing as an unknown
The P1 trial end RNS should Include Preliminary Data before the full data towards end of Q2 / Markets should Re rate the SP on a positive trial end RNS. GLA
Excellent post Citizen. It's also worth noting that the global psoriasis treatment market size was valued at USD 26.37 billion last year and the psoriasis market is projected to reach USD 51.48 billion by 2030. That is one heck of a market for Sareum to chase for SDC1801.
Johnson & Johnson could be one of the companies looking to acquire a psoriasis focussed smaller bio. I have mentioned before on here that J&J’s psoriasis treatment, Stelara, has annual sales of over $7 billion and targets psoriasis, psoriatic arthritis and Crohn’s disease and its patent appears be expiring in the next 2-3 years.
Let’s hope that SAR can close a licencing or takeover deal with Johnson & Johnson.....
Good luck, Brighty
Exactly right. Then we are off to the races with a licencing deal or a takeover once we get our SDC1801/1802 and SRA737 ducks, finally, in a row.
The recent PWC report on deal sizes in the pharma sector is very encouraging and worth flagging up. They are expecting a return of bigger deals in 2024, in the $5 billion to $15 billion size. Fantastic!
PWC state that deals will be used to:
* "fill targeted strategic gaps"
and
* “because patent expirations in the sector are on the horizon and are making drugmakers more interested in pursuing de-risked assets”.
The report says that “drugmakers are more likely to make higher-value deals in 2024 as they address growth challenges that loom later in the decade because of patent cliffs". This is clearly very good news for Sareum.
In summary the report concludes that deals totaling $225 billion to $275 billion will be struck this year in the pharma sector.....
Good luck, Brighty