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(Alliance News) - Arix Bioscience PLC on Wednesday said net asset value increased in its latest half year, but has since launched a strategic review due to "unfavourable" conditions while Chief Executive Officer Robert Lyne prepares to step down.
PureTech Health PLC at the same time announced that it has hired Lyne as its new chief portfolio officer.
Arix Bioscience shares were up 2.1% at 116.85 pence in London on Wednesday. PureTech Health shares were up 0.3% at 201.00p.
Lyne has served as Arix's CEO since April 2021, when he was promoted from chief operating officer. He first joined the London-based venture capital firm as general counsel in July 2017, having previously served as a legal advisor at Imperial Innovations Group PLC and an associate at Bird & Bird LLP.
Also on Wednesday, Arix released its interim results for the first half of 2023.
Arix, which invests in "breakthrough" biotechnology companies, said NAV at June 30 was 185p per share, up from 175p at December 31. Its gross portfolio value, meanwhile, has grown to GBP134.4 million from GBP99.7 million.
Arix also said its cash position at June 30 was GBP101.0 million, down from GBP122.8 million at the end of 2022. This was due to net investments of GBP6.0 million into its Public Opportunities portfolio and GBP13.5 million into the unlisted portfolio, marginally offset by an around GBP700,000 net gain from investee Disc Medicine.
Despite its increased NAV, however, Arix said it has been impacted by "unfavourable prevailing market conditions," with CEO Lyne commenting: "Prolonged uncertainty, volatile market conditions and depressed biotech valuations have resulted in fewer new investments during the period with a continued focus on cash conservation.
"Weak public markets have limited the funding opportunities for many biotech companies and in turn reduced the competitive tension which drives the [mergers & acquisitions] market."
In light of these difficult conditions, Arix had already in July announced the start of a strategic review. This will include consideration of Arix's investment and realisation strategies, its capital allocation and shareholder returns, and the possibility of a wind-down.
However, Arix added that its improved NAV demonstrates positive signs of recovery in the biotechnolgy sector. It said that this, alongside its strong balance sheet, leaves it well-positioned to further fund its portfolio.
Arix said Lyne will leave the company by the end of this year.
PureTech Health, a Boston, Massachusetts-based biotechnology company, said it expects him to assume the CPO role by early January.
PureTech's CEO Daphne Zohar said of Lyne: "His extensive legal, operational and UK listed IP commercialisation experience is complementary to PureTech's own hub-and-spoke business model.
"We are looking forward to working together closely as we realise the full potential of both our wholly owned programmes and founded entity stakes and royalties."
By Emma Curzon, Alliance News reporter
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