Medical and technology investor Amphion Innovations Plc (LON:AMP) is optimistic on the value it can create from its holdings in partner companies, including Motif Bio Plc (LON:MTFB) and Polarean Imaging.
Amphion owns a 14.1% stake in Motif, which in October announced it had successfully negotiated a crucial final-stage clinical study for its lead drug iclaprim.
Iclaprim is one of the next-generation of antibiotics and it will be used to treat cystic fibrosis sufferers who have contracted staphylococcus aureus pneumonia.
Top-line data for the REVIVE-2 Phase III trial showed iclaprim was just as effective as vancomycin, the current standard of care, and was well-tolerated by patients who took the antiobotic course.
Motif is on track to submit a new drug application to the US Food and Drug Administration for iclaprim in the first quarter of 2018.
Amphion saw its net asset value per share jump by a third in the first half, driven by the recovery in Motif’s share price following positive news flow on clinical trials of iclaprim.
READ: Amphion Innovations sees net asset value surge in first half thanks to recovery in Motif Bio shares
The company’s unrealised gains on investments for the six months ended 30 June was US$4.28mln, while total assets stood at US$27.26mln. Revenue rose to US$153,000 from US$60,000 the same period a year ago.
Motif share price recovery has further to go...
Chief executive Richard Morgan said Amphion continues to believe that Motif is not fully valued compared to other comparable antibiotic companies at the same stage of development.
The company sold off a small stake in Motif last year to repay part of a loan facility but is focused on retaining as much of its shares as possible.
In December Amphion said it had extended repayment of its loan while agreeing an additional US$1.55mln drawdown.
Including the additional draw, the company owes just under US$6.2mln, which will be re-paid in seven monthly instalments from 15 June. The loan was originally due in January.
Polarean Imaging to float...
Polarean Imaging, in which it has a 24% stake, is expected to float in the first quarter of 2018.
The group develops equipment that enables existing MRI systems to achieve an improved level of lung function imaging. Significantly, it has clear guidance from the US FDA on the start of a pivotal Phase III trial on its flagship drug-device platform.
Polarean's joint corporate broker, Northland Capital Partners, expects a pre-initial public offering of around US$29mln.
Amphion’s other investments include Axcess International (15.07%), Firestar Software (11.8%), Privatemarkets Inc (25.3%) and WellGen Inc (24.3%).
Axcess is an “Internet of Things” play with a focus on security solutions. provides what it calls micro-wireless system solutions for real-time business activity monitoring and control, whether it be guarding access to the front door or tracking how long individuals spend in a particular part of the building.
Firestar’s software addresses the increasingly important electronic information exchange market.
PrivateMarkets offers an internet-based marketplace that links together a network of potential buyers and sellers who trade specific physical commodities – a virtual private market, if you will.
WellGen’s brief is to discover and develop medical foods for inflammation-based diseases using natural products that are safe.
Motif and Polarean are the two main areas of focus at the moment, however, and Amphion has said their performance will have a significant impact on its own