Redx Pharma has announced its departure from the London stock market due to a perceived undervaluation, marking it as the second British pharmaceutical firm in the past week to reveal delisting plans.
Since joining the London Stock Exchange’s junior market in 2015, the drug discovery company has decided that exiting Aim and converting Redx Pharma into a private entity aligns best with its interests.
This decision comes on the heels of a significant drop in its share value. Prior to Tuesday’s disclosure, Redx’s market value had plummeted to about 80% less than it was in September 2021.
Dr. Jane Griffiths, the company’s chairman, stated, “Despite our efforts in securing some of the largest AIM capital raises for biotech companies in recent times, we’re still facing liquidity issues on AIM. Consequently, we believe our current market valuation doesn’t accurately represent our achievements or future potential and is impeding our ability to raise the necessary capital for our expanding clinical portfolio.”
Dr. Griffiths explained that as a private company, Redx would have access to a “wider range of specialized investors” and could secure more funding to support its ambitions of discovering new treatments.
The decision to delist comes amidst a wave of departures from the London stock market, raising concerns about the stability of the UK financial markets.
Just last week, C4X Discovery announced its plan to leave Aim, citing a valuation that didn’t reflect the true potential of its business.
