Motif Biohttp://www.motifbio.com/ TICKER: MTFB EXCHANGE: AIM
Motif Bio PLC is a drug discovery and development company targeting new antibiotic solutions. Modern medicine is under threat from antibiotic resistance, particularly for hospital-acquired infections (HAI). Motif has an opportunity to help strengthen the physician's toolbox for antibiotic-resistant bacteria.
Motif Bio PLC (MTFB) is a drug discovery and development company targeting new antibiotic solutions. Modern medicine is under threat from antibiotic resistance, particularly for hospital-acquired infections (HAI). MTFB has an opportunity to help strengthen the physician's toolbox for antibiotic-resistant bacteria.
MTFB recently raised £2.8m listing on AIM to support steps towards a Phase 3 programme of its recently acquired novel antibiotic, iclaprim, in two significant HAI indication areas. These could be worth up to $1bn in worldwide revenues, and highly attractive to Big Pharma acquirers. Indeed, Motif has just been selected to present at the 2015 BIO International Convention, the world's largest biotech meeting.
The outcome of a recent meeting with the US FDA (on 14 April) confirmed that iclaprim is ready for the clinic. Motif is exploring additional sources of funding to support this programme to completion - including non-dilutive awards and grants, and corporate partnering.
There is a healthcare crisis imminent through lack of new antibiotics, so MTFB should enjoy worldwide government and regulatory support to help commercialise iclaprim (and other product candidates), benefit from a fast-track approval process and a potential 10 years of market exclusivity.
A successful partnering strategy and commercialisation outcome suggests forecasts that support a valuation in the range of £45m-£60m. Positive Phase 3 results should be a multiplier for this figure, with potential M&A activity adding a further premium.
Foreign buyers gorging on UK stocks
Document can be downloaded here: UK plc ‘going for a song’
Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.
Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.
What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.
According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.
Happy investing. Published 27th August 2019