Life has been far from easy for Cambridge based medical device company SPHERE since its floatation a few years back.
At a current 24p the shares remain on the sick list, despite having recently gained EU approval for its blood analysing device Proxima.
Having previously shored up the balance sheet via a placing and open offer struck at 40p, the company also cemented a deal with Johnson & Johnson subsidiary Ortho Clinical Diagnostics, in order to market the device.
However, there are also two other things to note of late aside that welcome news on the approval.
The first, being the purchase of Ortho Diagnostics from J&J by the Carlyle Group for an expected $4bln, which by now should be a done deal.
Such situations understandably unnerve investors, who may well question whether the deal will remain intact under new ownership.
Although that perhaps muddies the water a little, holders will no doubt be content enough by the revelation this morning that Johnson & Johnson’s stake which has now fallen below 3%, appears to have transferred to Ortho Clinical Diagnostics, giving that operation a significant 13% of Sphere.
Given the current market cap now stands at just £14m, the technology which by all counts appears amazingly impressive and has seen a massive amount of investment, is clearly being valued at very little.
Hurdles no doubt remain, but if that relationship remains on track and develops, assisted by Sphere’s new CEO looking to make his mark, the company may be worth monitoring.
Equally, further progress and positive news flow could well put the shares back on the road to recovery.
Jenny Chapman business Editor at the Cambridge News is covering the company with a full interview, which should be well worth looking out for in the Cambridge Business Magazine September edition.
And talking of the Magazine, my coverage of BRADY is featured in the current edition from page 40 which may be of interest to some looking in.
This morning it was off to visit 1Spatial here in the City at their HQ across the road from the SciencePark.
It was well worth meeting up with the CEO Marcus Hanke, who very much filled me in on the business and its future prospects.
Next up for me is SEPURA, where I have a date with the company pencilled in for the 28 June 2014.
Another company that has not only performed well, but continues to do so.