ARIX BIOSCIENCE PLC
Arix Bioscience PLC (ARIX)
Annual Results for the Twelve Months ended 31 December 2020
09-March-2021 / 07:00 GMT/BST
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The issuer is solely responsible for the content of this announcement.
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Arix Bioscience plc
Annual Results for the Twelve Months ended 31 December 2020
Pivotal period; turning promise into delivery
LONDON, 9 March, 2021: Arix Bioscience plc ("Arix", LSE: ARIX) a global venture capital company focused on investing in
and building breakthrough biotech companies, today announces its annual results for the year ended 31 December 2020.
Financial highlights; significant increase in NAV
? Net Asset Value of GBP328 million (December 2019: GBP202 million); 242p per share (December 2019: 149p); a 62% increase
during the period
? Net positive portfolio revaluation of GBP136 million[1] in the period
? Gross portfolio value (realised and unrealised): GBP314 million versus cost of GBP162 million
Proven value creation; active management and disciplined capital allocation
? GBP158 million cash realised during the period (2019: GBP4.6 million):
- Sale of VelosBio to Merck & Co (MSD) for USD2.75bn delivered GBP139 million proceeds to Arix, representing an 11.8x
return on invested capital and an IRR of 320%
? 32% IRR generated by gross portfolio since inception in 2016
? Active management of public assets to optimise returns, resulting in cash realisations of GBP19 million; a further
GBP16 million realised post period end
? Disciplined approach to capital deployment and risk management demonstrated post period end, with the closing down
of Quench Bio after reviewing initial pre-clinical work
Strengthened capital base and reduced cost base
? Cash of GBP174 million (December 2019: GBP55 million)
? Realised gains from VelosBio expected to be tax exempt
? Significantly reduced net operating costs by over 35%, to an annual run rate within 2.0% of NAV (down from 4.0% in
2019)
? Strong position to support the current portfolio and invest in the next wave of opportunities
? Arix has the authority to purchase up to 13,555,185 of its ordinary shares; use of cash will be kept under review
Portfolio highlights
? New portfolio company, Twelve Bio, founded. Arix has committed GBP3.6 million for a 49% ownership stake
? USD580 million of proceeds raised by Arix portfolio companies in 2020 and an additional USD245 million post period end,
putting them in a strong position to execute on their important clinical development programmes. Notably, Imara
transitioned to a public company in 2020, after completing an USD87 million Nasdaq IPO
? Continued clinical progress in the portfolio with multiple data readouts (Aura, Amplyx, Atox Bio, Autolus, Harpoon,
Imara) and new trial initiations (Amplyx, Aura, Autolus, Harpoon, Imara) during the period
? Notably, Atox Bio's New Drug Application (NDA) was accepted by the U.S. Food and Drug Administration (FDA), with a
goal decision date (Prescription Drug User Fee Act (PDUFA) date) of 30 September 2021
? Artios entered into a strategic collaboration with Merck KGaA, Darmstadt, Germany to identify and develop precision
oncology medicines targeting nucleases and transitioned to a clinical stage company post period end
Outlook - Key anticipated milestones
Data generated from Arix's clinical pipeline will be a key driver of value and while clinical development is not
without risk, and the recruitment of clinical trials globally has been impacted by the Covid-19 pandemic, Arix has
several portfolio companies approaching key milestones over the next 12 months. In particular, we note the following
expected clinical catalysts in 2021:
? Autolus (1.6%[2]) expects to report Phase 1 data from a number of programmes, including: AUTO4 (Peripheral T Cell
Lymphoma), AUTO3 (Diffuse Large B Cell Lymphoma), AUTO1 (Non-Hodgkin lymphoma and adult acute lymphoblastic
leukemia) and initiate new clinical trials across its next generation programmes
? Aura (7.9%) expects to report Phase 2 data from ongoing clinical trials in choroidal melanoma
? Amplyx (3.0%) expects to report Phase 2 data for APX001 (candida auris and invasive aspergillosis) and MAU868
(BKV-associated nephropathy) and initiate a Phase 3 trial in invasive candidiasis (APX001)
? Artios (12.4%) expects to advance its Pol Theta programme (ART4215) into the clinic
? Atox Bio (6.4%) has been given a PDUFA date of 30 September 2021 by the FDA, which is the goal decision date on its
new drug application for patients with necrotising soft tissue infection
? Harpoon (6.9%2) expects to report data from ongoing Phase 1/2a clinical trials in prostate cancer (HPN424), ovarian
and pancreatic cancer (HPN536), multiple myeloma (HPN217) and small cell lung cancer (HPN328)
? LogicBio (9.1%) expects to initiate a Phase 1/2 clinical trial in methylmalonic acidemia (LB-001)
? Imara (5.8%2) expects to report data from ongoing Phase 2b clinical trials in sickle cell disease and beta
thalassemia (IMR-687)
Additionally, we expect a number of financing events across the portfolio in 2021 and are currently in late-stage
diligence on a new investment opportunity.
Dr Naseem Amin, Executive Chairman of Arix Bioscience plc, commented:
"This has been a period of outstanding achievement for our company. We have begun the journey of turning our promises
to shareholders into delivery - realising GBP158m during the year while at the same time refocusing the portfolio,
restructuring and reducing our costs and laying the foundation for the next wave of investments.
The last 12 months have seen Arix's portfolio continue to mature, passing a number of key milestones. We have achieved
our first major exit, underlining the validity of our business model. We have also increased our NAV by 62% to GBP328m,
moving us significantly closer to our year-end 2023 NAV target of GBP500m, that we set out in our 2020 interim results.
We enter 2021 with strong momentum in our portfolio and with multiple clinical data readouts expected. In addition to
clinical milestones, there is potential for M&A, strategic partnerships and other financing events across the
portfolio, which could significantly increase the value of our companies, and in turn our NAV."
Conference Call and Presentation Information
Arix will host a virtual analyst presentation today, 9 March, at 12:00pm GMT, followed by a Q&A session, accessible via
conference call or webcast. The webcast of the presentation will be available on the Company's investor relations
website at https://arixbioscience.com/investor-relations/events-presentations.
For details of the conference call please contact optimum.arix@optimumcomms.com.
[ENDS]
Enquiries
For more information on Arix, please contact:
Arix Bioscience plc
Charlotte Parry, Head of Investor Relations
+44 (0)20 7290 1072
charlotte@arixbioscience.com
Optimum Strategic Communications
Mary Clark, Supriya Mathur
T: +44 (0) 20 3950 9144
optimum.arix@optimumcomms.com
About Arix Bioscience plc
Arix Bioscience plc is a global venture capital company focused on investing in and building breakthrough biotech
companies around cutting edge advances in life sciences.
We collaborate with exceptional entrepreneurs and provide the capital, expertise and global networks to help accelerate
their ideas into important new treatments for patients. As a listed company, we are able to bring this exciting growth
phase of our industry to a broader range of investors.
www.arixbioscience.com
[1] Gross portfolio, including FX
[2] Reflects changes to ownership percentage since 31 December 2020 due to company capital raisings and/or market
transactions
The financial information set out in these statements does not constitute the Company's statutory accounts for the year
ended 31 December 2020, prepared in accordance with section 435 of the Companies Act 2006, but is derived from those
accounts. Statutory accounts will be delivered to the Registrar of Companies in due course. The auditors have reported
on these accounts and their report was unqualified and did not contain a statement under section 498(2) of the
Companies Act 2006.
EXECUTIVE CHAIRMAN'S REVIEW
This has been a period of outstanding achievement for our company. We have begun the journey of turning our promises to
shareholders into delivery - realising GBP158m during the year while at the same time refocusing the portfolio,
restructuring and reducing our costs and laying the foundation for the next wave of investments.
The last 12 months have seen Arix's portfolio continue to mature, passing a number of key milestones. We have achieved
our first major exit, underlining the validity of our business model. We have also increased our Net Asset Value (NAV)
by 62% to GBP328m, moving us significantly closer to our year-end 2023 NAV target of GBP500m, that we set out in our 2020
interim results. In addition, we recorded a significant reduction in our share price discount to NAV, from 29% to 10%,
and generated total shareholder return of 106% during 2020.
Refocus, reinvigorate, realise
Since our IPO in 2017, the potential of our portfolio has become increasingly clear. Our early years were characterised
by a strong pipeline, a diversity of investee companies and a series of encouraging data readouts and trials from these
investments. However, with Arix moving towards the mid-point in the traditional lifecycle of a venture capital fund,
2020 was the time to begin turning promise into reality for our shareholders. That is precisely what we have achieved -
and aim to continue in 2021 and beyond.
One of my first actions after moving into the Executive Chairman role in April was to work with the Board and senior
team to refocus and strengthen the business. At our interim results presentation in September, we announced the five (MORE TO FOLLOW) Dow Jones Newswires
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