The recent acquisitions of Ergomed and Instem underscore an emerging trend: private equity entities seeking out undervalued UK life sciences firms that have been constrained by AIM’s insufficient capital resources.
Observers of the industry have noticed this pattern, where several smaller UK innovators have been acquired at relatively humble prices in recent times, including names such as BTG, UDG, Clinigen, and Amryt Pharma.
There’s talk that these latest private equity acquisitions might follow the trajectory of Arm Holdings – reappearing on the Nasdaq in a few years with significantly higher valuations after going private.
This westward shift in the life sciences sector has persisted for about a decade. Max Hermann, a healthcare expert from the American investment bank Stifel, pointed out that US investors have a better grasp of their local healthcare market, as they interact with it daily.
Looking at the wider market, the AIM All Share dipped by 0.7% to 735.96 in the past five trading days, slightly underperforming the FTSE 100, which remained stagnant during that time.
Market activity picked up around Wednesday, bringing news circulation back to standard levels, although trading volumes stayed low.
Infrastructure India saw its shares soar by 130% following the $10 million sale of its primary logistics asset in India. Another highlight was Atlantic Lithium, whose shares climbed 27% over the week after Ghana’s Minerals Income Investment Fund announced an investment of about £26 million in the company’s main project.
In contrast, the challenge of raising funds was starkly evident for the battery group AMTE Power. The company managed to secure just above £2 million, but this came at a substantial share discount, resulting in a sharp price drop.
Other notable decreases include the 600 Group, which saw a 46% stock decline, and China Nonferrous Gold, which experienced a 55% stock dip on Friday due to significant financial woes.
On the other hand, Advanced Medical Solutions Group faced relatively minor challenges, but its stock still fell by 26% after adjusting its earnings predictions.
At this juncture, we spotlight ANGLE, a firm that might not be widely known. Led by Andrew Newland, ANGLE has innovated an FDA-endorsed liquid biopsy system to detect early signs of cancer, positioning it for market introduction.
Recent research from Berenberg and Jefferies emphasizes ANGLE’s promising financial trajectory, causing its shares to rise by 40% to 16.01p by week’s end.
