Arix Bioscience PLC said on Tuesday that losses were reduced in 2022, but net asset value fell.

The London-headquartered venture capital company, which primarily invests in biotechnology companies, said its pretax loss narrowed to £27.6 million from £61.1 million in 2021.

Arix said its loss in change in fair value of investments narrowed to £30.8 million in 2022 from £48.0 million in 2021. Arix also booked foreign exchange gain was £6.9 million, compared to no such gain in the prior year.

NAV decreased by 11% to £226.0 million on December 31 from £255.0 million a year prior. NAV per share fell by 12% to 175 pence from 198p.

Arix’s cash balance at the end of last year was down 8.5% to £122.8 million from £134.2 million at the end of 2021.

Arix declared no dividend for 2022, unchanged from 2021.

Arix said it was maintaining a selective approach to capital deployment and planned to continue with careful portfolio adjustments while headwinds continued in the bio-pharmaceutical sector. It said it was ‘well-placed to generate superior returns’ as mergers and acquisitions showed signs of returning to the sector.

‘As for many, 2022 proved more challenging than we had hoped at the start of the year. Markets were performing worse in the fourth quarter than in the same period in 2021 when life sciences stocks first began a steep fall. In the ensuing market correction, we are seeing a more conservative environment and a flight to quality, with the market oriented more towards value,’ Chief Executive Officer Robert Lyne commented.

He added: ‘Despite these uncertain times, the factors driving growth in the pharmaceutical industry remain unchanged: an ageing population, a rising prevalence of chronic conditions, and an increasing per capita spend on healthcare in developed and emerging markets underscore the inherent value that the sector has to offer.

‘For investors such as Arix, unlocking this value requires recovery in the biotechnology sector markets and an increase in licensing and M&A activity. We are confident that the fundamentals will play through when the macro challenges are no longer weighing as heavily on the markets.’

Shares in Arix were up 1.0% in London on Tuesday at 102.00p per share.

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