Is the tide turning for Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF)?
Based on the week’s news, the answer is a guarded ‘yes’.
Shield is a rarity for AIM: a drug development company that has hit a home run, meaning it has successfully developed a commercial drug.
Its breakthrough treatment for iron deficiency appears to be gaining some very healthy market traction in the US, where sales jumped 69% quarter on quarter to $6.9 million and were up 259% year on year.
Total prescriptions rose 26%, while the average price was $171, up from $118 a year ago.
Good shape
Financially, the group also appears to be in good shape with $8.1 million on the balance sheet and a further $5.7 million to come from a milestone monetisation deal. In total, that’s the equivalent of around two-thirds of Shield’s current market capitalisation.
Good news, yes. But there was also the tiny matter of CEO Greg Madison stepping down from the role immediately to be replaced by one of the group’s non-executive directors on an interim basis.
With the shares up more than 30% over the trading week, it appears investors were willing to overlook Madison’s hasty exit.
Slow week
Turning to the wider market, the AIM All Share had one of its less impressive weeks – albeit on weak volumes. The index lost 1.2% to trade at 775.05.
ATOME PLC (AIM:ATOM) (up 41%) was boosted by an outline agreement to sell all the fertiliser it will produce from a project in Paraguay to a Norwegian crop nutrition group called Yara International. The deal provides would-be financiers of ATOME’s project with commercial peace of mind.
The biggest riser, up more than 80%, was UK Oil & Gas PLC (AIM:UKOG), which, according to stock market filings, has a new investor that has built a 12.81% stake through Shore Capital Stockbrokers.
Big impact
A short announcement had a big impact on stock in SkinBioTherapeutics PLC (AIM:SBTX) (up 36%), the life sciences group which, believe it or not, focuses on the skin.
It also had a knock-on effect for OptiBiotix Health PLC (AIM:OPTI, OTC:OPBXF) (up 27%), the gut health group that holds a 25% stake in SBTX.
The stock market missive in question revealed SBTX had closed down a £5 million convertible bond facility having drawn down around £1.6 million.
The past year has been a good one for investors in Scancell Holdings PLC (AIM:SCLP, OTC:SCNLF), the immuno-oncology group which has seen its shares fly 46% higher in that period.
Scancell on the radar
This week it revealed it co-opted a panel of melanoma experts to help plan and design its clinical trial. What really got the market excited was the level of interest generated by its technology at ASCO, a conference that attracts the world’s cancer experts. The shares ended the week 8% higher.
Sticking with the drug development sector, but dropping down to Aquis, the nursery for growth stocks, Ananda Developments Plc (AQSE:ANA) catches the eye. Its share price has almost doubled in a little over six weeks.
Ananda is developing a treatment for chronic pain derived from CBD that is going through a rigorous clinical trial process.
CEO Melissa Sturgess told Proactive she had noticed a better and growing understanding of Ananda's story, and particularly its lead asset, MRX1.
Ananda gaining traction
She also pointed out Ananda has been able to attract some heavyweight talent, including non-exec Clive Page, a driving force behind British success story Verona Pharma (AIM:VRP), and drug sector veteran Trevor Jones, who joins the recently established scientific advisory board.
Of course, the spike came when preclinical data revealed its potential efficacy in cardiac fibrosis and heart failure.
Onto the fallers: Aptamer Group PLC (AIM:APTA), the research and diagnostics specialist, killed the buzz around the stock by launching a £2.8 million fundraiser selling shares at a very heavy discount, which saw two-thirds wiped from the valuation.
Versarien PLC (AIM:VRS, OTC:VRSRF), the non-materials group, fell 43% after it tapped the market for £500,000.
They were among five smaller companies that rushed out fundraisers ahead of the annual summer hiatus.