LONDON (Alliance News) - Amphion Innovations PLC on Thursday reported a "dramatic rise" in its net asset value per share, mainly due to a move by partner company Motif Bio PLC to raise GBP22 million not long after floating on London's AIM in April.
Motif, a clinical stage biopharmaceutical company with the aim of developing antibiotics to combat bacteria resistant to existing drugs, separately said Thursday that the US Food and Drug Administration has granted "fast track" designation for its iclaprim intravenous treatment for acute bacterial skin and skin structure infections, as well as hospital acquired bacterial pneumonia.
"This is excellent news for Motif and comes on the back of the QIDP designation for iclaprim in late July. This Fast Track designation means we will benefit from greater FDA support and that we remain on our Phase III development timeline," Motif Chief Executive Graham Lumsden said in a statement.
Amphion, which develops medical and technology businesses, said its net asset value, derived by subtracting liabilities from assets and a key measure of a company's value, increased to 12.0 pence per share at the end of June from 0.7p six months earlier.
When Motif listed on AIM, it raised GBP2.8 million and was valued at GBP12.8 million by market capitalisation. On admission to the market, Amphion held a 44.1% stake in the company. Motif then raised GBP22 million in July to help commercialise its iclaprim antibiotic within 36 months of listing.
Under that placing, Amphion's shareholding in Motif was reduced to 26.17%. The second placing was priced at 50 pence per share, significantly higher than the 20p issue price under Motif's IPO, a boost to Amphion. Motif shares were up 11% at 67.70 pence on Thursday morning in London, while Amphion shares were up 12% at 6.00p.
"We believe Motif has a very bright future and is now on its way to becoming a significant player in the antibiotic market, which has a growing need for novel therapies," Amphion Chief Executive Richard Morgan said in a statement.
As well as committing to support Motif, the chief executive said that Amphion is seeing new opportunities with its other partner companies and beyond.
"We now have the opportunity to move forward one or two other partner companies and, for the first time in many years, to begin to explore the possibility of adding to Amphion's portfolio," Morgan said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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