Two Stocks Under Spotlight: Faron Pharmaceuticals Oy and Arix Bioscience PLC

Two Stocks Under Spotlight: Faron Pharmaceuticals Oy and Arix Bioscience PLC

Faron Pharmaceuticals Oy

Faron Pharmaceuticals Oy (Identifier: FARN) is a Turku, Finland-based clinical-stage biopharmaceutical company that aims to tackle life-threatening medical conditions, such as Acute Respiratory Distress Syndrome (ARDS) and pancreatic cancer through its two drug development programs, Traumakine® and Clevegen®. Currently, there is no approved pharmaceutical treatment for ARDS and Traumakine® is the only treatment for Acute Respiratory Distress Syndrome undergoing Phase III clinical trials, and it aims to prevent vascular leakage and organ failure under ischemic condition. The company is listed on the AIM of the London Stock Exchange, and its development pipeline is based on endothelial receptors concerned with the regulation of immune responses.

FARN-Recent developments

The company has received the feedback of MATINS study and is expected to continue with the study guided by the following observations.

  • Confirmation that Clevegen has had a good tolerability across all dosing levels (0.3-10 mg/kg) with no dose limiting toxicity (DLT) observed. A maximally tolerated dose (MTD) has not been reached.

  • Immune activation was observed in all 11 subjects following treatment with Clevegen. They were observed with increased circulating CD8+ T cells and CD8+/CD4+ ratio. In addition, they had decreased regulatory T-cells (T-regs) or a substantial increase in mobile natural killer (NK) cells in the blood.

  • The DMC observed that lower doses (0.3 and 1 mg/kg) may potentially induce a stronger immune response than 3.0 and 10 mg/kg doses. Consequently, the DMC proposed a new test dose of 0.1 mg/kg instead of 20 mg/kg which was considered previously. This was most evident in the activation of NK cells, the first line of defence of human immune system.

 

FARN-Financial highlights for H1 FY19

The company was successful in raising EUR 4.5 million approximately from existing and new shareholders, directors and employees. The proceeds are being used in the MATINS trial for Clevegen and Traumakine development through the global phase III CALIBER clinical trial during the period. The company was not able to generate any revenue in the first half of fiscal year 2019. The company incurred loss from operations amounting to EUR 6.3 million for the six months ended 30 June 2019 as against loss of EUR 14.0 million for the six months ended 30 June 2018. The company’s Research and development expenditure plunged by EUR 6.7 million to EUR 5.0 million in H1 FY19 as against EUR 11.7 million in H1 FY18. The company’s administrative expenses plunged by EUR 1.0 million to EUR 1.4 million in H1 FY19 as against EUR 2.4 million in H1 FY18. The R&D expenses and Administrative expenses, both have factored IFRS charge due to allocation of options. The company was not impacted in terms of cash flow or equity. The company’s loss after taxation was recorded at EUR 6.4 million for the period as against loss of EUR 14.1 million in H1 FY18. The company’s basic loss per share was EUR 0.17 in H1 FY19 as against basic loss per share of EUR 0.45 in H1 FY18. The company’s total cash and cash equivalents stood at EUR 2.9 million at the end of H1 FY19 as against EUR 11.2 million at the end of H1 FY18.

FARN-Share price performance

At the time of writing (at 02:57 PM GMT, as on 17 October 2019,) Faron Pharmaceuticals Oy shares clocked a price level of GBX 135.66 per share, down by 2.40 per cent in comparison to the last day trade closing price. Market Capitalisation of the company stood at £54.52 million at the time of writing.

FARN shares have touched a peak on 17 June 2019 of GBX 167.97 and a trough on 03 January 2019 of GBX 50.04 in the past year.

Before the market close, at the time of writing, the stock’s volume was around 63,749. Stock's mean daily traded volume for 5 days stood at 507,667.20; 30 days- 140,672.13 and 90 days – 144,143.93.

The company’s 5 days average daily traded volume was up by 260.89 per cent as against average daily traded volume for 30 days. At the time of writing, the shares of the company were trading above the simple moving average price of 30-days and 200-days.

FARN shares have delivered a positive return of 30.52 per cent in the past one month. Also, From January to till date, the stock was up by approximately 150.50 per cent and was up by 13.49 per cent in the last quarter.

30-days, 14-days and 9-days RSI (Relative Strength Index) of the stock was recorded at 65.12, 75.11 and 80.54 respectively. Also, RSI of the stock for 3-days was recorded at 91.52.

Arix Bioscience PLC

United Kingdom-based Arix Bioscience PLC (Identifier: ARIX) is mainly focused on generating value from the commercialization and development of discoveries and technologies. It is a global venture capital group with a focus on investing and building breakthrough biotech companies. The company serves customers internationally. The group’s main activity is to finance, develop, and source healthcare and life science businesses globally.

ARIX-Recent News

Arix Bioscience Plc’s (ARIX) portfolio company Aura Biosciences has reported further positive clinical data from its Phase 1b/2 clinical trial. The trial was for assessing the safety and effectiveness of the company’s lead product candidate for the primary treatment of choroidal melanoma- the light-activated AU-011. The portfolio company is a front-runner in the development of new targeted treatments in ocular oncology.

Earlier on 30th September 2019, the company announced that it has invested in a new portfolio company Stipe Therapeutics (Stipe), a company founded to exploit a novel mechanism in the Stimulator of Interferon Genes (STING) Pathway, the main driver of innate immunity, and autoimmune disorders and regulator of tumorigenesis.

 

ARIX-Financial Highlights for H1 FY19 period ended 30th June 2019

The company’s revenue in the H1 of FY2019 period stood at GBP 266,000 against a revenue of GBP 472,000 in H1 FY2018. In H1 FY19, the company’s loss before tax stood at £44.8 million against the profit before tax of £29.3 million in H1 FY18. Net asset value decreased to £231.8 million as compared to £270.2 million in December 2018. Net asset value per share reduced by 14.5 per cent to 171 pence against the 200 pence in FY18. Net downward gross portfolio revaluation stood at £34 million as compared with the corresponding period of the last year, driven by the decline of 51 per cent in Autolus’ share price, despite the company’s robust fundamentals. Gross portfolio value declined to £167.8 million versus £175.5 million in December 2018. During the current period, capital deployed into the gross portfolio was £26.3 million, an increase from the £12.6 million in H1 FY18.

The company’s financial performance for the first half of the financial year 2019 has declined. Both the top-line and the bottom-line performance contracted for the current period. The company’s profitability margins for the period remained in the negative zone. There were geopolitical tensions which have resulted in the economic slowdown in the multiple geographies globally. The portfolio companies have made a decent growth in a shorter duration and are striving towards the main clinical and development milestones in the year ahead. The company is progressing satisfactorily towards innovation in medicine for the benefit of investors and patients. The company has built a promising portfolio of biotech companies, developing highly innovative therapies in vital areas of medical need. 

 

ARIX-Share price performance

At the time of writing (at 03:04 PM GMT, as on 17 October 2019,) Arix Bioscience Plc shares clocked a price level of GBX 117.75 per share, up by 1.07 per cent in comparison to the last day trade closing price. Market Capitalisation of the company stood at £160 million at the time of writing.

ARIX shares have touched a peak on 12 November 2018 of GBX 183.00 and a trough on 15 October 2019 of GBX 105.10 in the past year.

Before the market close, at the time of writing, the stock’s volume was around 9,848. Stock's mean daily traded volume for 5 days stood at 66,133.00; 30 days- 50,373.00 and 90 days – 40,189.78. The company’s stock beta (2Y weekly), which is a measure of volatility of the stock, stood at 0.26, which means that the company’s stock is less volatile in comparison to the benchmark index.

The company’s 5 days average daily traded volume was up by 31.29 per cent as against average daily traded volume for 30 days. At the time of writing, the shares of the company were trading above the simple moving average price of 30-days and 60-days.

ARIX shares have delivered a negative return of 2.92 per cent in the past one month. Also, From January to till date, the stock was up by approximately 30.03 per cent and was down by 11.07 per cent in the last quarter.

30-days, 14-days and 9-days RSI (Relative Strength Index) of the stock was recorded at 48.96, 55.65 and 60.32 respectively. Also, RSI of the stock for 3-days was recorded at 77.02.

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