Big discounts likely as auction looms for Woodford assets

While Neil Woodford’s Woodford Investment Management is expected to go ahead with an auction of its private biotech holdings this month, three healthcare investors told BioCentury it isn’t a sure thing the fund will be able to sell the stakes, and if it does, it is unlikely the prices will be anywhere near their book valuations.

Trading in the flagship Woodford Equity Income Fund was suspended on June 3 and extended a month later to July 29 due to concerns the fund couldn’t meet a growing demand for redemptions. That suspension is likely to be extended for months while the sale of the private assets plays out (see “Woodford Suspends Trade in Flagship Fund”)...