Tiziana Life Sciences PLC (NASDAQ:TLSA, LON:TILS) said it plans to list its diagnostics business Accustem Sciences on the Nasdaq stock market in the US after its demerger and the distribution of new stock to Tiziana shareholders.
“The board of directors of Accustem has resolved that the Nasdaq listing venue is more appropriate to the nature of Accustem’s business,” a short statement read.
Certainly, the American electronic market has become the natural home to ambitious, growing healthcare companies and has spawned some of the giants of the sector.
The understanding of what’s needed to develop a new drug or technology is such that Nasdaq-listed life sciences companies tend to trade at a premium valuation to similar businesses listed on this side of the Atlantic.
It also tends to be a more liquid market, and US-listed firms often have access to deeper pools of capital than their European counterparts.
Accustem will own the breast cancer diagnostic StemPrintER and the SPARE genomics-based personalised medicine business.
“Demerging the genomic risk assessment assay StemPrintER for breast cancer can enable the separate therapeutic and genomics entities to seek the most suitable independent funding or partnerships to move forwards and highlight the value of each segment as a ‘pure-play’,” Proactive analyst Emma Ulker said in a note on the company.
StemPrintER has been shown in a retrospective study to be superior to the standard assay acquired by Exact Sciences (NASDAQ:EXAS) as part of a US$2.8bn takeover deal.
The spin-out will allow Tiziana to focus solely on drug development. It advancing three candidates for a variety of indications in autoimmune disease, cancer and Covid.
On Monday, Zacks Small-Cap Research said US-quoted stock was worth US$7.50, more than double the closing share price.
It said the valuation was based on its probability adjusted estimates for successful phase III confirmatory trials in progressive Multiple Sclerosis (pMS) with nasally administered foralumab (the company’s lead candidate) and Crohn’s Disease (CD) with orally administered foralumab, which Zacks expects to yield registrational results in 2026.