Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Port Erin Biopharma Investments Ltd's interim expose NAV disparity

The investment company's shares rose 10% to 5.5p in early deals, barely half the net asset value per share
Port Erin Biopharma Investments Ltd's interim expose NAV disparity
The company's three main investments are Magna Biopharma, Plethora Solutions and Summit Therapeutics

Investment company Port Erin Biopharma Investments Ltd (LON:PEBI) said its three main investments continue to show significant growth potential.

Shares in the company rose 10% to 5.5p in early deals on the back of interim results that indicated the company's shares have a net asset value of 10.8p.

The company's three main investments are Magna Biopharma Income Fund (MBIF), Plethora Solutions Holdings PLC (LON:PLE) and Summit Therapeutics PLC (LON:SUMM).

MBIF's investment objective continues to seek growing income distributions with capital appreciation potential in the long term by investing in a diversified portfolio of biopharma sector securities. The company said prospects for the investment “remain compelling”.

Plethora has been taken over by Regent Pacific Group, giving Port Erin a stake in Hong Kong-listed Regent.

Summit is an international biopharmaceutical company focussed on the discovery and development of novel medicines to treat the fatal muscle wasting disease Duchenne Muscular Dystrophy (DMD) and infections caused by the bacteria C. difficile (CDI).

Summit's progress has been extensively covered on Proactive Investors.

During the reporting period the company invested £94,995 in the Diabetic Boot Company, a company focused on treating diabetic foot ulcers.

Investment income in the six months to the end of 2015 was negative at £96,448 compared to £83,835 the year before.

Loss before tax widened to £184,674 from £143,388 in the same period of 2014, although given the company's focus on early-stage biopharmaceutical companies, the results are not particularly meaningful and investors tend to focus on the net asset value per share, which is currently substantially higher than the share price.

"Your board is currently considering a number of further options which show significant promise in being able to eliminate the substantial discount to net asset value in line with the investing policy adopted in November 2013," said Jim Mellon, non-executive chairman of Port Erin.

John-H.jpg


Register here to be notified of future PEBI Company articles

Related Articles

757z468_Lab-(1).jpg
April 26 2016
Dr Stewart White, Collagen Solutions chief executive, told investors that the new partnership will expedite the roll-out of its medical grade collagen to customers in China.
Clean room
June 14 2016
Contracted business is already in excess of £9 million this year, with a strong pipeline of further business opportunities being pursued across all areas of the group
Microscope
March 24 2016
Shares were placed at 35p each, a discount of around 4.3% to Tuesday night's close.

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.