Arix Bioscience PLC: Interim Results for the Six Months Ended 30 June 2020

DJ Arix Bioscience PLC: Interim Results for the Six Months Ended 30 June 2020

Arix Bioscience PLC (ARIX) 
Arix Bioscience PLC: Interim Results for the Six Months Ended 30 June 2020 
 
08-Sep-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF THE EU 
MARKET ABUSE REGULATION NO.596/2014 
 
Arix Bioscience plc 
 
Interim Results for the Six Months Ended 30 June 2020 
 
LONDON, 8 September 2020: Arix Bioscience plc ("Arix", LSE: ARIX) a global 
venture capital company focused on investing in and building breakthrough 
biotech companies, today announces its interim results for the period ended 30 
June 2020. 
 
Financial highlights 
 
  · Net Asset Value of GBP251.0 million (December 2019: GBP202.1 million); 185p per 
  share (December 2019: 149p); a 24% increase for the first six months of 2020 
 
  · Net positive portfolio revaluation of GBP51.7 million[1] in the period 
 
  · Gross Portfolio Value of GBP203.4 million (December 2019: GBP149.2 million) 
 
  · GBP11.6 million of capital deployed into the portfolio during the period 
 
  · GBP9.1 million of capital realised during the period 
 
  · Cash of GBP44.0 million (December 2019: GBP54.6 million) 
 
  · 20% IRR generated by the Gross Portfolio since inception in 2016 
 
=-- 
[1] Including FX 
 
Operational and strategic progress: 
 
  · Significantly reduced net operating costs by over 35%, to an annual run 
  rate of approximately GBP5.0m by the end of 2021, (down from GBP8.0m in 2019) 
  which represents less than 2% of current NAV (down from 4.0% in 2019). 
 
  · Further strengthened the Arix platform with the establishment of a 
  Scientific Advisory Board (SAB) comprised of leading researchers and industry 
  executives dedicated to improving treatments for patients. 
 
  · Naseem Amin appointed as Executive Chairman, bringing over 29 years of 
  experience in the life sciences industry. Former roles include: CSO at Smith 
  & Nephew, VP of Business and Clinical Development at Biogen and Genzyme. 
 
  · Christian Schetter moved into a Managing Director role, bringing 22 years 
  of operating experience to the senior team and a track record of building 
  successful biotech companies through to product approval and/or acquisition 
  by big pharma. 
 
  · Jonathan Tobin appointed to Managing Director, recognising his commitment 
  and contribution to advancing great science through Arix's portfolio of 
  innovative biotech companies. 
 
  · Further strengthened Arix senior team with the appointment of Noor Lalani 
  to Public Investments Director, bringing over 15 years of capital markets and 
  portfolio management expertise. 
 
Portfolio highlights 
 
  · $391.5 million of proceeds raised by Arix portfolio companies in the year 
  to date 
 
    · Imara raised gross proceeds of $86.5 million in a Nasdaq IPO, in which 
    Arix invested $3.0 million (GBP2.4 million) 
 
    · Quench Bio completed a $35.0 million Series A financing, in which Arix 
    committed $6.0 million (GBP4.6 million) 
 
    · Autolus completed an $80.0 million follow-on financing from leading 
    institutional investors 
 
    · Amplyx completed a $53.0 million Series C extension, from new investors 
    Pfizer and Adage Capital 
 
    · Post-period end, VelosBio completed a $137.0 million Series B financing, 
    in which Arix invested $4.0 million (GBP3.2 million) 
 
  · Continued clinical progress in the portfolio: 
 
    · Autolus (17% of NAV) reported positive data from its AUTO1 programme in 
    adult Acute Lymphoblastic Leukaemia (adult ALL) and transitioned this 
    programme into a pivotal trial. The company also reported encouraging data 
    from its AUTO3 programme in diffuse large B-cell lymphoma (DLBCL) 
 
    · Imara (14% of NAV) reported encouraging initial Phase 2a data from its 
    IMR-687 clinical study for patients with sickle cell disease (SCD) and 
    initiated Phase 2b trials in SCD and beta-thalassemia 
 
    · Harpoon (12% of NAV) reported positive interim Phase 1 data from its 
    HPN424 programme in prostate cancer and announced the dosing of the first 
    patient with HPN217 in a Phase 1/2 clinical trial focused on relapsed, 
    refractory multiple myeloma (RRMM), which triggered a $50 million milestone 
    payment from AbbVie 
 
    · Aura (4% of NAV) presented further positive safety and efficacy data from 
    the ongoing AU-011 Phase 1b/2 study for choroidal melanoma 
 
    · Atox Bio (3% of NAV) completed its Phase 3 pivotal study for necrotizing 
    soft tissue infections (NSTI) and is preparing to submit a New Drug 
    Application (NDA) in Q3 2020, following a meeting with the U.S. Food and 
    Drug Administration (FDA) 
 
    · Amplyx (2% of NAV) announced positive top line data following the 
    completion of its Phase 2 clinical trial of fosmanogepix (APX001) as a 
    first-line treatment for patients with invasive fungal infections caused by 
    Candida. Additionally Amplyx announced that the first patient has been 
    dosed in its Phase 2 clinical trial evaluating the efficacy and safety of 
    MAU868 for the treatment of BK viremia in kidney transplant recipients 
 
Outlook - Key anticipated milestones 
 
Data generated from our clinical pipeline will be a key driver of value and 
whilst clinical development is not without risk, and the recruitment of 
clinical trials globally has been impacted by the coronavirus pandemic, we have 
a number of portfolio companies approaching key milestones over the next 18 
months. In particular, we note the following anticipated value-driving 
milestones across our portfolio: 
 
  · Autolus (17% of NAV) expects to present long term follow up Phase 1 data 
  from its AUTO1 programme in adult ALL by the end of 2020, with pivotal data 
  expected in H2 2021 and approval targeted for 2022. Autolus also expects to 
  report updated Phase 1 data from AUTO3 in DLBCL by the end of 2020 and over 
  the next 18 months the company expects to transition multiple next generation 
  programmes into the clinic. 
 
  · Imara (14% of NAV) expects to announce updated results from its IMR-687 
  Phase 2a clinical study in sickle cell disease (SCD) by the end of 2020 and 
  report interim Phase 2b data in SCD and beta-thalassemia in 2021. 
 
  · Harpoon (12% of NAV) expects to present interim data from its HPN536 
  Phase1/2a clinical trial for ovarian and pancreatic cancer and initiate the 
  HPN328 Phase 1/2 clinical study in small cell lung cancer by the end of 2020. 
 
  · Artios (8% of NAV) expects to file an Investigational New Drug (IND) 
  application for its ATR inhibitor programme by the end of 2020, with Phase 1 
  initiation planned for H1 2021. 
 
  · LogicBio (8% of NAV) expects to initiate a Phase 1/2 clinical study for 
  LB-001 for the treatment of methylmalonic acidemia in the first half of 2021. 
 
  · Aura (4% of NAV) expects to initiate a Phase 2 clinical trial evaluating 
  suprachoroidal (SC) delivery of AU-011 in patients with choroidal melanoma, 
  in the second half of 2020. Aura also expects to report Phase 2 data from the 
  Phase 3 eligible patient cohort of its clinical trial evaluating intravitreal 
  injection (IVT) administration of AU-011 in patients with choroidal melanoma 
  in H1 2021. 
 
  · Atox Bio (3% of NAV) expects to submit an NDA with the FDA by the end of 
  2020, for its NSTI drug reltecimod, under Accelerated Approval Pathway. 
 
  · Amplyx (2% of NAV) expects to report interim Phase 2 data in Candida auris 
  and invasive aspergillosis by the end of 2020 and plans to initiate a Phase 3 
  trial in invasive candidiasis by the end of 2021. 
 
Dr Naseem Amin, Executive Chairman of Arix Bioscience plc, commented: 
 
"This has been a pivotal period for Arix and our companies. We have refocused 
and streamlined the business, significantly reducing costs in order to maximise 
returns for our shareholders. Over the period our portfolio has continued to 
make strong progress, with a number of companies reaching important clinical 
milestones and completing additional financing rounds at higher valuations. 
 
The COVID-19 pandemic has presented an unprecedented challenge to the 
healthcare sector and economies worldwide. During this time, we have been 
working closely with our portfolio companies to help support them through this 
disruption and minimise any impact to ongoing clinical trials and scientific 
research. We have been fortunate in seeing minimal delays to clinical trials 
across the portfolio, in part due to the acute setting that many of these 
companies operate in. We syndicate all our deals with top tier biotech venture 
capital firms, and as such our portfolio companies are well financed and well 
positioned to navigate through any potential delays as a result of the 
pandemic. 
 
We enter the second half of 2020 with strong momentum in our portfolio and with 
multiple additional 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. Whilst the development of 
important new medicines always carries risk, over the next three years we 
expect to see at least two additional IPOs across the portfolio and at least 
two exits. We are targeting an annual IRR of 15 to 25 per cent, generating a 
 NAV of up to GBP500m by 2023. Through strong execution of our strategy we expect 
to generate significant returns for our investors over the medium to long term, 
through capital growth and the potential for distributions where returns exceed 
the capital needed for reinvestment. We have a highly seasoned leadership and 
ambitious team, supported by a high calibre Scientific Advisory Board and 
Board, and close relationships with pharmaceutical and academic partners. These 

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