Below are three additional ASX-listed biotechnology companies...

Below are three additional ASX-listed biotechnology companies (beyond the first set) that conducted share consolidations within the past five years and experienced subsequent increases in share price or market capitalisation. As before, each example details the consolidation date and ratio, pre- and post-consolidation prices, changes to market capitalisation, and the main drivers behind the positive market response.

1 Avita Medical (ASX: AVH)

1.1 Date and Ratio of Consolidation

• Effective Date: 29 June 2020

• Ratio: 1-for-100 reverse split

1.2 Pre- and Post-Consolidation Share Prices

• Pre-Consolidation Price: Approximately A$0.09 (June 2020)

• Post-Consolidation Price (theoretical): Around A$9.00

• Short-Term Price Action: Within weeks, Avita’s share price climbed further, peaking around A$14.00 in August 2020

1.3 Market Capitalisation Before and After

• Before: Roughly A$800 million (at ~A$0.09 with a very large share count)

• Immediately After: Still around A$800 million in total value (fewer shares but at a higher notional price)

• Subsequent Increase: As the share price rose above A$14.00, market cap surpassed A$1.2 billion

1.4 Analysis of Positive Market Response

• Dual Listing & Institutional Appeal: The consolidation aligned with Avita’s NASDAQ listing objectives, removing “penny stock” perceptions and maintaining compliance with US exchange requirements.

• Strong Clinical/Commercial Developments: Avita’s regenerative medicine and burn-treatment product (the RECELL® System) continued to gain regulatory traction. Positive data and expanding sales in the US provided fundamental support.

• Improved Liquidity & Capital Raising Opportunities: A higher share price post-split attracted broader institutional interest, making it easier for Avita to raise funds on more favourable terms.

2 Bionomics (ASX: BNO)

2.1 Date and Ratio of Consolidation

• Effective Date: Mid-June 2022 (following shareholder approval)

• Ratio: 1-for-60 reverse split

2.2 Pre- and Post-Consolidation Share Prices

• Pre-Consolidation Price: About A$0.03

• Post-Consolidation Price (theoretical): Approximately A$1.80

• Short-Term Movement: Over the next several weeks, the share price traded around A$2.00–2.20, reflecting further gains beyond the mechanical consolidation effect

2.3 Market Capitalisation Before and After

• Before: In the vicinity of A$180 million (billions of shares at a few cents each)

• Immediately After: Near A$180 million initially (fewer shares but ~A$1.80 price)

• Subsequent Uptick: As the stock moved beyond A$2.00, Bionomics’ market cap approached or exceeded A$200+ million

2.4 Analysis of Positive Market Response

• Regaining NASDAQ Compliance & Wider Investor Base: Bionomics was also aiming to uphold NASDAQ listing requirements (minimum bid price). Post-consolidation, the higher share price removed delisting concerns and opened doors to institutional investors.

• Clinical Pipeline Optimism: The company’s drug candidates in anxiety, PTSD, and other CNS disorders had shown encouraging Phase 2/2b data, generating news flow that supported a higher valuation.

• Corporate Partnerships & Capital Raises: The healthier post-split share structure helped Bionomics secure additional capital (at a better price per share) for ongoing clinical trials, supporting a moderate uplift in market cap.

3 Cellmid Limited (ASX: CDY), now Anagenics (ASX: AN1)

3.1 Date and Ratio of Consolidation

• Effective Date: 23 June 2020

• Ratio: 1-for-20 reverse split

3.2 Pre- and Post-Consolidation Share Prices

• Pre-Consolidation Price: Approximately A$0.02 (very low nominal price)

• Post-Consolidation Price (theoretical): Around A$0.40

• Short-Term Rally: In the weeks after consolidation, the stock traded up to ~A$0.60 before settling back in a higher range than pre-split

3.3 Market Capitalisation Before and After

• Before: Roughly A$4–5 million (given a penny-stock price with a high share count)

• Immediately After: Remained close to A$4–5 million (proportionally fewer shares at a higher price)

• Subsequent Increase: As the share price tested ~A$0.60 post-split, Cellmid’s market cap briefly exceeded A$7–8 million, representing a noticeable uptick

3.4 Analysis of Positive Market Response

• Refreshed Investor Perception: Cellmid (focused on diagnostics and hair-growth/lifestyle biotech products) had faced the stigma of “penny stock” pricing. The consolidation lifted the notional share price to a more investable level.

• Product Commercialisation Milestones: Shortly after consolidation, the company announced progress in expanding distribution networks for its consumer health division, attracting renewed retail and small-cap institutional interest.

• Better Access to Funding: By having a more conventional share price and share structure, Cellmid found it easier to pitch prospective capital raisings, supporting the product pipeline.

Key Takeaways

1. Removal of “Penny Stock” Status: Reverse splits often help biotech firms trade above psychologically and institutionally important price thresholds, improving credibility with larger investors.

2. NASDAQ or Other Compliance: Many ASX biotechs pursue dual listings on NASDAQ; maintaining a minimum bid price is critical for ongoing compliance. A higher post-split price often averts delisting.

3. Supporting Positive News Flow: In all these examples, consolidation success was tied to genuine operational or clinical progress—merely restructuring shares without delivering tangible milestones rarely sustains a higher post-consolidation price.

4. Enhanced Liquidity & Raising Capacity: Consolidations can sometimes improve liquidity, especially if they coincide with capital raisings, new product launches, or clinical-trial breakthroughs.

By combining a more favourable share structure with strong underlying corporate developments, these biotech examples each leveraged a consolidation to achieve short-term gains and, in some cases, longer-term improvements in shareholder value.