Arix Bioscience PLC (LON:ARIX), the early-stage biotech investor, announced a share buyback programme worth up to £25mln.
The company said it had £174mln of available cash on 31 December 2020 following the trade sale of VelosBio, which realised £158mln for Arix.
“Given the strength of the company's balance sheet the board is confident that it can return this capital to shareholders whilst also retaining a strong capital base to continue delivering its strategy,” Arix said in a statement.
“The company will retain sufficient capital to both support its existing portfolio and make new investments, maintaining a high quality, diversified portfolio that has the potential to deliver important new treatments for patients and superior returns for shareholders, the statement added.
The share buyback programme will be limited to the lower of £25mln or 13.56mln shares, in line with the general authority to repurchase shares granted by shareholders at the most recent annual general meeting.
Last week Arix responded to an open letter from Acacia Research, an activist investor and major shareholder, that was published on Monday.
The biotech-focused venture capital firm said it was “disappointed” that Acacia had decided to publish the letter on the same date as delivering it to the company, adding that it has “an experienced board that is committed to acting in the best interest of all shareholders”.