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Bargain shares: A heavily oversold biotech value recovery play

An investment company that owns a diversified portfolio of early-stage biotechnology businesses is trading 30 per cent below NAV even though cash and listed holdings back up all its share price.
Bargain shares: A heavily oversold biotech value recovery play
  • Nasdaq IPO of Pyxis Oncology increases value of Arix's shareholding by 55 per cent.
  • $11m investment in new portfolio company Disc Medicine
  • New board appointments
  • Unlisted portfolio worth £81.5m (63p a share) in the price for free

Arix Bioscience (ARIX:142p), a company that holds a diversified portfolio of unlisted and listed investments in early-stage biotechnology businesses, is the laggard in my market-beating 2021 Bargain Shares portfolio.

This is mainly due to share price weakness in some of its Nasdaq-listed holdings, which account for 70 per cent of Arix’s listed portfolio valuation of £42.2m (32.5p a share). That valuation is well down from £53.7m at 30 June 2021 even though Arix invested £5.8m after the period end in the $50m IPO of Nasdaq-quoted drug development company Imara (US:IMRA). 

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