Arix Biosciences PLC’s (LON:ARIX) portfolio will be in the spotlight in coming weeks due to the prestigious American Society of Clinical Oncology (ASCO) 2020 meeting, says research house Hardman.
Around 50% of the biotech venture capitalist's investee companies are working in the oncology field, it added.
Arix has a basket of 17 company investments, six of which are listed and at the close of business last week, the portfolio was worth £206.9mln or 153p per share.
That represents a discount of about 47% with the shares at 81.5p currently, according to Hardman.
Around 77% of net assets are accounted for by the core portfolio of 11 companies, which includes the listed businesses: Autolus (6.45% Arix); Harpoon (10.4%); Imara (9%), Iterum (7.3%); LogicBio (13%) and Pharmaxis (11%).
Arix has gross cash of 40mln and at a current market value of £110mln, Hardman says the market is valuing the business on the basis of cash (£40m) and only 40% (£70.5m) of the book value of the core portfolio companies.
“Given that there is increasingly positive momentum behind life sciences companies in the COVID-19 environment, the current 47% discount to NAV should be viewed as an opportunity, especially given the news flow expected to be announced by portfolio companies in the coming months,” it said.