We are initiating coverage on Arix Bioscience PLC (LON:ARIX) following its February 2017 IPO that raised £113m. Arix is a new transatlantic life sciences portfolio company drawing from managerial expertise at all levels of the pharma industry to engage in opportunities ranging from seed investing to public equity. It draws on a network of deal sources established through agreements with academia, life science accelerators, other funds, and through partnerships with big pharma. The company is trading at a modest 11% premium to our initial asset valuation of £172m or 179p/share.
Partnerships on three levels of development
Arix’s partnered sourcing network is comprised of three levels. First, it has signed first-look and first-investment agreements with seven universities, allowing access to invention stage projects. Second, it has agreements with the biopharma accelerators BioMotiv and the Lead Discovery Center to allow participation in seed stage companies. Third, Arix has established partnerships with UCB and Takeda to share assets and jointly fund the creation of new companies.