The venture-capital style firm, which invests in potentially disruptive life sciences businesses, plays an active role in the companies it backs and a number of those are now advancing high potential opportunities.
Specifically, according to Shore Capital, the firm’s core investments are across twelve companies giving investors exposure to a £168mln portfolio – plus, Arix’s own £60mln of cash in the bank.
“The biotech portfolio is invested across 12 core companies, focused on cancer, immunology & inflammation, rare diseases/gene therapy and anti-infectives and a ‘Discovery’ portfolio of earlier stage assets,” Shore Cap analyst Dr Tara Raveendran said in the note to clients.
The analyst added: “Led by an impressive team with a breadth of industry experience, strong industry partners (Takeda, Ipsen, UCB and Fosun) and close relationships with leading universities and academic institutes, Arix is an attractive vehicle for investors and a compelling strategic and financial partner for portfolio companies.”
ShoreCap is not the only City firm taking an upbeat view. Earlier this month, Jefferies suggested the London listed share could double in value as it gave a ‘buy’ recommendation and a 229p price target following Arix’s capital markets day at the stock exchange.
Looking at the group’s market valuation versus assets, Jefferies said: “The current 31% discount is cheap in our view and allows no value for Arix's private assets.”
The potential held within the Arix portfolio was more recently underlined on 16 October when “portfolio company” Aura Biosciences revealed its lead candidate for an eye cancer treatment had shown “early signs of efficacy” in a Phase 1b/2 clinical trial.
It is one of a number of positive developments recently supporting the investment group’s share price.