Member Info for chique

IC - April 21 - interesting article

Artios Pharma, a company backed by venture capital company Arix Bioscience (ARIX:190p), has entered into a three-year research collaboration with drug giant Novartis to discover and validate next-generation DNA Damage Response (DDR) targets to enhance Novartis' Radioligand Therapies (RLT). Artios is a leading DDR company that is developing a pipeline of precision medicines for the treatment of cancer.

In return for an upfront payment of $20m and near-term research funding to support the collaboration, Novartis gains the rights to select up to three exclusive DDR targets, and receive worldwide rights to be utilised with its RLTs. Artios will be eligible to receive discovery, development, regulatory and sales-based milestones of up to US$1.3bn, in addition to royalty payments on net sales of products commercialised by Novartis. The collaboration does not include Artios' lead programmes, ART0380, which is in clinical development, and ART4215, a first-in-class Pol Theta inhibitor.

In December, Artios entered a three-year collaboration with drug giant Merck to discover and develop multiple precision oncology drugs. Artios received US$30m in upfront and near-term payments, and Merck has the right to opt into exclusive development of compounds on up to eight targets. If Merck exercises the option, Artios will be eligible to receive up to US$860m per target, in addition to double-digit royalty payments on net sales of each product commercialised by Merck.

Artios management played key roles in AstraZeneca’s discovery of Lynparza, a treatment for advanced ovarian cancer, another reason why both Merck and Novartis are backing them. Moreover, the collaborations strongly suggest that Arix has backed another major winner for its shareholders, having previously realised US$185m (£139m) for its 6.8 per cent stake in Velos Bio, a company that was acquired by Merck for US$2.75bn at the end of 2020.

Arix invested £13.8m for a 12.4 per cent fully diluted stake in Artios and the holding has a modest carrying value of £19m. However, investment bank Jefferies valued the Artios stake at £49m after the Merck announcement, but before news of the Novartis collaboration. Jefferies' NAV estimate of £339m (250p a share) includes cash of £185m (136p a share), so effectively Arix’s investment portfolio of listed and unquoted companies is in the price for half book value. That’s a harsh valuation given that Artios is only one of several portfolio companies that are approaching key milestones over the next 12 months.

I suggested buying Arix shares, at 168p, in my market-beating 2021 Bargain Shares Portfolio, and the news from Artios adds further weight to the investment case. Buy.

Yes was thinking that Gerry as they announced the dividend when there were 3 shares so to speak

No it's not a co-incidence , they know it is going to be roughly a third - "broadly similar level "

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It is anticipated, therefore, that the market price of each Ordinary Share should remain at a broadly similar level following the Special Dividend and the Share Consolidation. The current ISIN (GB00B18V8630) in relation to Existing Ordinary Shares will be disabled in CREST as at 6.00 p.m. on 2 July 2021. A new ISIN (GB00BNNTLN49) in relation to the New Ordinary Shares will come into effect at 8.00 a.m. on 5 July 2021.

the 25th July dividend must be based on the consolidated position also

My reading is that 355 is the dividend , nothing related directly to the consolidation
355 x 3 is 1065
oldtimer was saying 1068.50 which was the close on 2nd June

Whast I thought would happen from reading is that the share price is expected to be the same / approximately ( in other words not a precise calculation which you would expect if 1068.50 was a critical figure )
The way I read it , is that he expects the share price to drop because of the fall in NAV and the 3 to 1 is so ther share price is roughly !! at the same level

I read that Oldfortyniner , it read to me like the 10.68 he uses , is being used as an example , so people buying in now will not be allocated new shares based on 10.68 , they would get 3 for 1

My concern is that they were trading a lot lower before the declaration of the special , if you assume that level , then deduct some or all of the 355 it would not be a great investment , hence my reason for steering clear just now

If this is the case surely there should have been a suspension in trading

Not buying just interested in the mechanics of what they are doing

I thought that 1086 was an example

Why are these dropping if dividend date is end of today?

LSE - Jarvis OK

lse jarvis

LSE jarvis

How do you arrive at 1065

Watching this myself at the moment , think I will wait till ex div on special

I know what you are saying Cherryburn but we are where we are with Georgy boy.
I just feel as though the tide is turning, whether down to him or not

Not traded for many years after the death of my wife - but starting again - I am getting on and these didnt seem to bad to me so made a small first investment - goes ex div on 8th July 21 , but I intend to hold on to them , with the 16.8p dividend it bring my cost of share down to 54p , they think they will be able to make a yearly 5p dividend if I read the docs correctly which is a decent yield

Hope you guys took profits on the rise today

I think fundfemale was predicting lower sp too just before it went to 26p, since when its remained above 20p pretty much

up to 12 down to 7.5 days ago back to 8.3 little bit more than quiet