viewMotif Bio PLC

Motif Bio boost as leading US investor snaps up stock

The antibiotic specialist's shares nudged higher on the news

trading room
The shares changed hands at market value

Investors in Motif Bio PLC (LON:MTFB) will be buoyed by news that a leading US institutional investor has snapped shares in the antibiotic developer at market value.

The sale was made by Amphion Innovations PLC (LON:AMP), an early backer of the business, which sold almost 9mln shares at 31p each, netting US$3.7mln in the process.

READ: Motif Bio launches accelerated book-build placing to raise approximately £10mln to boost iclaprim investments

It should be noted that normally with big trades such as this, the stock is offloaded at a discount. While the identity of the buyer is not known, the words “leading institutional investor” should boost sentiment.

The share price nudged up just 1.3% to 32.05p, which suggests the market hasn’t grasped the importance of the day’s announcement for Motif.

For AIM-listed Amphion, the influx of cash will allow the technology incubator pay back certain loans due in full by the year-end. After the disposal, it retains a 9.53% stake in Motif worth around US$11mln.

For Motif, the next year will be pivotal for the business. After successfully concluding two Phase III clinical trials for lead drug iclaprim, it is currently making a rolling data submission to the US regulatory authorities.

Northland Capital reckons Motif is worth 115p a share.

Quick facts: Motif Bio PLC

Price: 0.5 GBX

Market: AIM
Market Cap: £3.27 m

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