Amphion Innovations Plc (LON:AMP) told investors it is optimistic and actively supporting its associates Motif Biotics and Polarean.
“The outlook for Amphion depends increasingly on the value we can capture from our holdings in Motif and Polarean, now that we have Polarean on the path to commercialisation,” Amphion said in its financial results statement.
“We are very actively supporting the development of both Motif and Polarean and view the future of both companies with optimism.”
Polarean, a specialist in MRI technology, is being prepared for an AIM market float later this year – after raising US$2mln in pre-IPO financing during 2016.
The company added that it also continues to support other companies in its portfolio such as FireStar, Axcess, and WellGen.
Amphion said it is excited by the prospects for FireStar’s new product platform, software for secure data exchange, and it hopes the firm can ‘get on the runway’ in 2018.
A difficult year for Motif Bio
Amphion chief executive Richard Morgan described 2016 as “a difficult year” for Motif Bio due to the impacts of the Brexit vote which disrupted its funding plans.
According to Amphion, Motif Bio should be valued “more in line” with comparable companies trading on the NASDAQ exchange, and that would see Amphion’s value considerably higher.
Motif represents a significant weighting in the Amphion valuation, and as such is a major steer on the group’s share price.
“The sharp fall in sterling amplified the decline in the share price which in turn hit the value of Amphion's holding,” Morgan said.
“The release of good data from the REVIVE-1 clinical trial in 2017 confirmed our belief that Motif has a good programme and is significantly undervalued. The formation of Polarean Imaging Limited and the closing of the pre-IPO has put this exciting company on track for a listing later this year.
“We look forward to helping both companies achieve their full potential and to progress the development of other assets in the Amphion portfolio.”
Amphion reported US$139,633 of revenue in the twelve months to December 31, and it reported a US$16.8mln loss before tax.