AMPHION INNOVATIONS (LON:AMP)
SECTOR – HEALTHCARE
RATING – CORP*
MARKET CAP – £1.7m
CURRENT PRICE – 0.8p
ANALYST – BARRY GIBB
Year-end Dec
2015A
2016A
2017A
2018E†
Revenue (US$m)
0.5
0.1
0.3
No
Forecasts
Operating loss (US$m)
(4.2)
(3.3)
(2.9)
Pre-tax Profit (US$m)
5.9
(16.8)
2.5
EPS (cents)
3
(9)
1
DPS (cents)
-
-
-
NAV (US$m)
10.9
(5.9)
(2.8)
P/E (x)
-
-
-
Dividend yield (%)
-
-
-
EV/EBITDA (x)
-
-
-
SOURCE: Northland Capital Partners Limited estimates. Priced at market close. *Northland Capital Partners Limited acts as Joint Broker to Amphion and therefore this information should be viewed as a Marketing Communication.
Sale of Partner Company Shares
NORTHLAND VIEW
§ Amphion Innovations announced that 3,000,000 shares in its Partner Company, Motif Bio Plc, have been sold directly to an institutional investor at 33.5 pence per share.
§ Net proceeds of approximately US$1,273,000 from the sale of these Motif shares are to be used as partial repayment of Amphion’s loan facility originally announced on 5 June 2014 (with the most recent terms being detailed on 22 December 2017), as well as ongoing business operations and development of Amphion's other Partner Companies. Following this sale, Amphion's holding will represent 8.51% of the issued share capital of Motif. The Motif shares sold had a book value of US$1,339,166 as at 30 June 2018.
§ Following repayment, the loan balance of the Facility will be US$2,822,642 including fees and accrued interest. The remaining loan balance is expected to be repaid in 3 monthly installments from 15 October - 15 December 2018.
§ The current loan under this Facility continues to be secured by the pledge of 24,475,591 ordinary shares of Motif Bio Plc. Amphion has transferred the legal title to, but retains the beneficial interest in, the total pledged shares.
Amphion’s management has recognized the intrinsic value of its remaining Motif holding and is eager to retain as much of it as possible. Based on yesterday’s closing price, Amphion’s holding in Motif was valued at £8.8m, or around 5x its current market capitalization. We believe the Motif share value is likely to remain the principal influence on Amphion’s share price, given its portfolio of earlier stage investments. In this respect, Motif’s recent progress with the FDA acceptance of its NDA for iclaprim indicated for ABSSSI, along with potential approval decision date of 13th February 2019 and continued preparation for the drug’s commercial launch, should help build confidence.
COMPANY DESCRIPTION
Amphion Innovations is an incubator of medical, life science, and technology businesses.