Gene-sequencing firm Oxford Nanopore’s decision to choose Hong Kong’s stock exchange over Nasdaq has raised questions about its £1.9bn ($1.5bn) valuation. Close relationships between the small number of investors funding the biotech scene and the companies they back have led some to suggest there is a risk of conflicts of interest. Critics have also questioned the investment practices of IP Group, co-founder of Oxford Nanopore, saying that its investors and management were rewarded on increases in its companies’ book valuations, boosted by infusions of funding, rather than on cash returns.
Gene-sequencing firm Oxford Nanopore’s decision to choose Hong Kong’s stock exchange over Nasdaq has raised questions about its £1.5bn ($1.9bn) valuation. Close relationships between the small number of investors funding the biotech scene and the companies they back have led some to suggest there is a risk of conflicts of interest. Critics have also questioned the investment practices of IP Group, co-founder of Oxford Nanopore, saying that its investors and management were rewarded on increases in its companies’ book valuations, boosted by infusions of funding, rather than on cash returns.