A stock formerly backed by Neil Woodford has expressed its gratitude that his stake in the company, now held via Link Fund Solutions, has finally been sold off.
The 11.8% stake in Sensyne Health has now been transferred to Acacia Research, the US investor that scooped 19 healthcare and biotech stocks from the LF Equity Income fund over summer at the bargain price of £224m.
Although Acacia Research entered the agreement with Link Fund Solutions on 5 June, the Californian firm is taking ownership of portfolio positions in a staged manner. Link’s deal left a sour taste in investors’ mouths when Acacia sold off several stocks in their entirety for a quick profit within days of taking ownership.
See also: Link accused of letting further middleman chip into Woodford investor savings
Sensyne Health said in a regulatory filing issued on Tuesday that it welcomed the “clarity” that came with the new ownership. The company uses artificial intelligence to analyse anonymised patient data from the NHS to pursue pharmaceutical discoveries. The NHS benefits from an equity stake and a share in revenues.
Acacia Research chief executive Clifford Press said Sensyne’s business model had “extraordinary potential”. “As governance-oriented investors, we are impressed by the constructive manner in which Sensyne has engaged with us as a major shareholder. We strongly support the continued development of a very talented management team for the next stage of the company’s growth.”
News of the transaction comes a day before accounts are released for the LF Equity Income fund. The last accounts for the fund were published in June 2019 with Link getting permission from the Financial Conduct Authority to delay publication during the wind-up of the portfolio.
Sensyne Health was trading around 140p when the Woodford Equity Income fund suspended in June 2019. Woodford Investment Management had held a 20% stake in the company at the time but sold off a 5.6% stake to Baillie Gifford in the weeks following the fund’s suspension.
By the start of August 2019, Woodford had reduced the stake further to 11.8%, the level at which it would remain until the Acacia Research deal.
The stock is currently trading at 60p.
