British Biotech OCTP Shares (Oxford Cannabinoid) Delisting from LSE

Oxford Cannabinoid Technologies Holdings (OCTP) has announced plans to delist from the London Stock Exchange (LSE). The pharmaceutical firm, specializing in cannabinoid-based therapies, cited a sense of being undervalued on the exchange as the primary reason behind its decision to delist, with the shares now down almost 90% in 12 months.

OCTP is set to exit the LSE by June 6th this year, subject to the approval of its shareholders. This action is not isolated but part of a broader pattern seen across the British biotech sector, where firms seek better valuations or access to more substantial capital outside of public markets. Whilst OCTP is a smaller participant on the market, this trend of LSE departures reflects a general inclination towards private ownership or listings on other stock exchanges deemed more favourable.

The move by Oxford Cannabinoid Technologies follows in the footsteps of other UK biotech firms, such as C4X and RedX, which have taken similar steps to delist from the LSE.

The biotech industry in the UK has been grappling with a tough investment climate, which has led many companies to reassess their positions in financial markets. The flight of biotech firms from the LSE has sparked discussions about the value of public listings for early-stage pharmaceutical companies, which often require substantial investment in research and development before achieving profitability.

As OCTP and similar companies search for more conducive environments for growth and investment, the trend could continue to shape the trajectory of the biotech sector in the UK. The departure of these firms from the LSE poses questions about how the exchange can retain and attract innovative companies in the face of stiff global competition.

Also Read: What happens when a company delists?