Edison issues flash on RTW Biotech Opportunities (RTWBIO): Significant acquisition of Arix Bioscience’s assets
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Edison Investment Research Limited
London, UK, 1 November 2023
Edison issues flash on RTW Biotech Opportunities (RTWBIO): Significant acquisition of Arix Bioscience’s assets On 1 November 2023, RTW Biotech Opportunities (RTWBIO), a full life cycle biotech investor, announced what it considers to be a transformational deal. It plans to acquire the assets of UK-listed Arix Bioscience in an all-share transaction, which on a pro-forma basis would increase RTWBIO’s NAV by c $550m (c 63%). The deal brings the prospects of increased liquidity in RTWBIO’s shares and a more efficient cost base, and potential for a higher RTWBIO valuation. Arix’s shareholders would receive new RTWBIO shares at an implied c 46% premium to the level before Arix announced a strategic review. Meanwhile, RTWBIO’s management team anticipates that the deal would be single-digit accretive to the company’s NAV per share at completion. During 2022 and so far in 2023, RTWBIO has made nine new investments and had seven successful IPOs or exits of portfolio companies. The acquisition would bring c $128m of Arix’s liquid assets, of which c $60m is expected to be in cash following completion of the scheme and the cost of the deal. RTWBIO intends to invest this capital in both public and private assets and can deploy cash quickly via investment in its ‘other public’ portfolio, which is made up of listed companies held by other RTW funds, to minimise cash drag. It can also deploy capital through its royalty and structured finance strategy, which provides an income stream with returns that are uncorrelated with equity returns and stock market volatility. About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Mel Jenner +44 (0)20 3077 5700 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
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1762757 01-Nov-2023
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