SMALL CAP SHARE IDEAS: Circassia Pharmaceuticals one for the recovery portfolio …
Investors have had to be patient waiting for AIM-listed biotech Circassia Pharmaceuticals to come good, but things might now be turning in its favour.
A recent trading update highlighted good sales growth while cash – another key metric for any early-stage biotech – was healthier than expected.
Circassia was caught up last year in the Woodford debacle, with the troubled fund manager holding a 28 per cent stake in the firm in March that had to be sold down when it collapsed.
Circassia is focused on inhaled treatments for respiratory diseases such as COPD (smoker’s cough) and asthma, both areas that have considerable potential
But that overhang, too, has now passed and last week another investment group, CIP Merchant Capital, bought a 3 per cent stake in Circassia based on, what it called, the ‘clear route to profitability’ evident for the business.
Circassia is focused on inhaled treatments for respiratory diseases such as COPD (smoker’s cough) and asthma, both areas that have considerable potential.
It’s NiOX product, for example, is a tool that measures if a person suffers from asthma and, if they do, the severity of the condition.
By analysing the fractional…