More than two-thirds have been swept away by the value of a healthcare technology company set up by former science minister Paul Drayson after warning it could run out without an emergency loan next month.
Sensyne Health, an Aim-listed technology novice in buyout talks with its management and other investors, said on Friday that it had signed a non-binding term statement with its institutional shareholders to provide £ 6.35 million through a loan note. A further £ 5 million “can be provided with mutual consent”.
But the company said that without the loan, it would be “unlikely to continue trading after early February 2022”.
Sensyne, based in Oxford, warned that it was unlikely any sale would be completed before the need for new cash, but added that he was also looking for “a significant debtor” to bring in cash.
Shares in the company fell 70 per cent to 22p on Friday, a new low compared to the IPP price of 175p in 2018, which values it at just £ 36m.
In November, the company launched a strategic review and sales process after Drayson, a counterpart to Labor and Sensyne’s CEO, approached the board to seek permission to pursue a management buyout.
JPMorgan and Peel Hunt act as joint financial advisors to Sensyne, and have since contacted a range of competitors and investors to determine interest in an offer or strategic investment in the company. A number of parties were now in more detailed discussions, Sensyne said on Friday, but with “no certainty that any offer will be made”.
The company’s board said it believes its market value does not reflect the fair value of its electronic patient record health data. As of 12 January 2022, Sensyne said he had an unaudited cash position of £ 2.8 million.
In its trade update, Sensyne tried to ensure that it was operationally on track. The company is building an international database of anonymous patient data, including through a partnership with the NHS, to help discover new medicines. This database can provide detailed information on demographics, diagnosis, treatment, medication, biochemical and genetic tests and procedures.
In December 2021, Sensyne signed a strategic research agreement with Cambridge University Hospitals NHS Foundation Trust to access 3 million patient records, bringing the total number of anonymous records in the UK to 12.9 million patients.
The company’s board is led by Sir Bruce Keogh, NHS England’s former national medical director, who is the fourth chairman to have served since driving the group.