Synairgen to delist from aim amid investor pressures and funding struggles

Synairgen, the respiratory-focused biotechnology company born out of the University of Southampton, is set to delist from the Alternative Investment Market (AIM) following a turbulent period of funding challenges. Shareholders are expected to vote on the decision later this month as the company pivots towards seeking private investment to stabilise its future.

The decision follows a broader trend of companies exiting AIM as the platform grapples with diminishing listings and concerns over the UK’s capital markets. Synairgen, which was established in 2003 and listed on AIM the following year at 130p per share, has endured a volatile few years. During the Covid-19 pandemic, its shares soared to a peak of 250p, driven by optimism around its antiviral treatment, SNG001, designed to combat respiratory viruses. However, a late-stage trial failure in 2022 triggered a significant decline in the company’s valuation, with shares plummeting to as low as 1.25p.

As of this week, the company’s market capitalisation stands at roughly £13 million. Synairgen had planned to raise £2.9 million through the public markets in addition to an £18 million subscription from its primary shareholder, TFG Asset Management UK. The company was unable to secure sufficient support from public investors, leading the board to determine that AIM was no longer a viable platform for its equity-raising activities.

The delisting is expected to yield annual cost savings of approximately £650,000 beginning in 2026, a crucial consideration for a business facing mounting financial pressures. The board plans to use funds from its primary backers to support manufacturing and testing for the upcoming phase II clinical trial of SNG001, which focuses on ventilated patients with a range of respiratory viruses. The treatment, based on interferon beta, a naturally occurring antiviral protein, remains the cornerstone of Synairgen’s long-term research strategy.

Synairgen’s delisting underscores the challenges faced by AIM-listed biotechnology firms, many of which struggle to attract sustained public investment amid volatile market conditions. AIM itself has seen a steady exodus of companies in recent years, with listings falling from nearly 1,700 in 2007 to about 679 today, the lowest count since 2001. Synairgen joins a growing list of firms such as C4X Discovery and I-Nexus Global that have chosen to abandon public markets in favour of private funding models.

With the shareholder meeting scheduled for 28 March, investors will have the final say on this critical shift in Synairgen’s trajectory, a move that signals broader challenges for AIM and the UK’s ability to nurture and sustain high-growth companies within public markets.