Silence sells part of its holding in Arrowhead Pharmaceuticals

Serious disease treatment developer Silence Therapeutics has sold part of its holding of common shares in Arrowhead Pharmaceuticals, it announced on Monday.

The AIM-traded firm had purchased 6,831,359 common shares in Arrowhead for $11.3m, then representing 9.21% of the company, in January.

At its last balance sheet date on 30 June, that shareholding was marked-to-market and valued at £8.55m as an available-for-sale financial asset.

It has now sold 2,036,046 shares on the open market for $7.5m (£5.6m), the board confirmed.

The average purchase price per common share was $1.65, and the average selling price of the 2,036,046 common shares recently sold was $3.68.

Silence said the profit recorded was therefore $4.1m, or £2.9m, adding that it would use the proceeds from the sale of the common shares to fund its working capital requirements.

The board said it determined it could be advantageous to liquidate portions or all of its holdings of Arrowhead common shares from time to time, in an orderly manner consistent with prudent management of its investment.

“Our balance sheet has been strengthened by the addition of £5.6m in cash received from the partial sale of this stake in Arrowhead,” said Silence CEO Ali Mortazavi.

“As a biotech company focussed on both our platform and our developing pipeline, we believe that this cash receipt will enable us to maintain our focus as we advance products towards the clinic.

“The company will invest the funds in low risk cash or cash equivalent investments to safeguard the principal, using financial institutions with a credit rating equivalent to, or above, the main UK clearing banks.”