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Sensyne Health Share Price Gapped 14.4% Higher on a Buyout Offer

Updated: 2 Nov 2021

Sensyne Health PLC (LON: SENS) share price gapped 14.4% higher after formally beginning the process of finding a buyer for the firm.

The data analytics company has received a management buyout offer from its founder Lord Drayson to take the company private. 

Sensyne Health has appointed JP Morgan and Peel Hunt to oversee the sale process. The two investment banks will consider Lord Drayson’s offer to see if the management buyout offer will translate into a firm offer. 


However, the banks will also explore other “buyer interest” and opportunities that could allow the firm to scale its operations much faster.

Sensyne Health’s management board announced today that they believe the firm’s current valuation did not represent the firm’s “fair value” or the data it controls.

The health data analytics company said that the anomaly in its valuation was preventing it from “executing opportunities” to create new drugs for patients.

It appears investors agreed with the board’s assessment given the spike higher in Sensyne Health shares. However, the shares had given up some of their gains by the time of publishing.

Sir Bruce Keogh, Sensyne Health’s, Chairman said: “The board is fully aligned with Lord Drayson's proposal to explore a management buy-out as one route towards maximising value for all stakeholders while respecting our heritage and unique, ethical business model. We recognise Paul's continued motivation and commitment towards the success of the business.”

Sensyne Health is currently participating in the Biodata World conference in Basel, Switzerland, where is Chief Business Development Officer Martin Gouldstone has made a presentation.

Some of the highlights of his presentation included the fact that the company can now combine real-world data (rwd), for example, from clinical trials settings, with its AI to solve challenges such as fragmented data sets, lack of standard data models and interoperability, as well as complex governance and consent structures.

Gouldstone noted that this could transform clinical research using synthetic control arms with virtual patients to reduce costs and patient recruitment efforts. Thus, eventually reducing the burden on patients and facilitating ethics inclusion in rare disease research. 

While investors are excited about the prospects of a management buyout, it may take a while before a firm offer materialises and the company is sold.

*This is not investment advice. 

Sensyne Health share price.

IG chart of Sensyne Health share price 02-11-2021
Source: IG

Sensyne Health share price gapped 14.37% higher to trade at 107.51p, rising from Monday’s closing price of 94p.

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