Life sciences investor Amphion Innovations PLC (LON:AMP) saw its net asset value (NAV) per share jump by a third in the first half, reflecting the recovery in the Motif Bio PLC (LON:MTFB) share price.
Motif shares have risen by more than a third over the course of 2017 on positive news flow from the clinical trials of its next-generation antibiotic, iclaprim.
READ: Amphion Innovations reduces stake in partner company, Motif Bio with the sale of 1.7mln shares
Amphion currently holds a 14.1% stake in the company after it sold off a small stake post-period end to repay part of a loan facility.
That reduced the loan balance to US$4.49mln from US$6.15mln, although Amphion has since struck a deal with the provider that no more Motif shares will be sold until 15 January 2018 at the earliest.
It is also in talks with other providers as it looks for alternative, longer-term financing options, it said in a statement.
Motif share price recovery ‘long overdue’
“We were very pleased to see the announcement of the Orphan Designation for Cystic Fibrosis for Motif Bio's iclaprim as well as the recent recovery in the Motif Bio share price,” said chief executive Richard Morgan.
“The value of Motif has a significant and proportional effect on the Net Asset Value of Amphion.
“We are focused on retaining as much of our Motif Bio shares as possible other than what is absolutely necessary to meet the required repayments on Amphion's Loan Facility.”
Total assets of US$27mln
Given the strong performance from the drug developer in the opening six months of the year, net asset value improved to -US$0.02 as of 30 June compared to –US$0.03 at the end of the year.
Amphion’s unrealised gains on investments was US$4.28mln, while total assets stood at US$27.26mln.
Kromek stake sold
Amphion also has stakes in other companies. During the period it sold off its interest in X-ray screening specialist Kromek Group PLC (LON:KMK).
It also has a position in medical imaging group Polarean which is close to floating on AIM and in medical foods firm WellGen, as well as a handful of others.
Motif and Polarean are the two main areas of focus over the coming months though, and Amphion said their performance will have a significant impact on its own.
Revenue for the six months ended 30 June was US$153,000 (H1 2016: US$60,000). Administrative expenses increased slightly which meant the operating loss for the period came in at US$1.6mln (H1 2016: US$1.5mln).