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Small Cap Movers: Good news, bad news week for AIM life sciences companies engaged in the battle to beat coronavirus

It was a good news, bad news week for AIM-listed life sciences companies engaged in the battle to beat coronavirus (COVID-19).

For N4 Pharma, which is developing its delivery technology to carry coronavirus plasmid, there was disappointment as the latest proof-of-concept work delivered inconclusive results.

Undeterred, chief executive Nigel Theobald plans to move onto a further assessment of the promising technology. Unfortunately, the market wasnt convinced and shares fell 37% to 6.1p.

In a week of contrasts, Fusion Antibodies (LON:FAB), up 118% at 195p, was in demand after it said it had made progress on the design, expression and validation of coronavirus spike proteins.

There were buyers on a no news week for Genedrive (LON:GDR), up 54% at 11.7p, which is helping develop a portable COVID-19 testing kit (what health secretary Matt Hancock would give for a device of this kind).

Tiziana Life Sciences also provided some good news on the Covid front that lifted the shares 18% to 147p, building on the momentum that has seen the stock grow from less than 25p in March.

It has developed a nasal spray containing an antibody that its scientists think will combat the fatal symptoms of the virus. And it is taking the treatment, called foralumab, into clinical trials in Brazil a year ahead of schedule.

Tiziana currently has two shots at goal with a second Covid combatant, TZLS-501, currently undergoing pre-clinical assessment. A recent American stock offering, meanwhile, brought in £44mln, which leaves the business well-funded.

Turning to the wider market, the AIM-All Share was up 1.2% over the trading week at 968, buoyed by the performance of its two leading lights – the online retailers Boohoo (LON:BOO) and ASOS (LON:ASC), which rose 5.9% to 315.8p and 9.5% to 5,000p respectively.

The junior stocks index outperformed the FTSE 100, which was more or less flat.

Up 80% at 44.8p was Surface Transforms (LON:SCE ), the maker of disc brakes for supercars, which landed a “game changing” £27mln order from an unnamed vehicle maker.

The award doubles the group's previous revenue projections for full-year 2022 and accelerates the business into profitability and cash generation, said chief executive Kevin Johnson.

Two green hydrogen companies– Ceres Power (LON:CWR) and ITM Power (LON:ITM) – caught the eye of Wall Street bank Citi, which initiated coverage of both companies with buy recommendations.

The latter is now worth more than £1.3bn, while the former is currently fast approaching the £1bn mark.

Sheffield-based ITM advanced 8.9% to 276p this week after it said it had partnered on a new project to create green hydrogen production facilities and refuelling stations across Scotland.

Ceres closed the week 8.5% higher at 574.5p.

Moving in the opposite direction was Global Petroleum, whose stock sank 34% after raising £1.4mln via a discounted share placing to fund work on its NamRead More – Source

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