Biotech Gains Property Growth and Beauty Setback Shape Small-Cap Market Movers

London’s small-cap market saw a mix of strategic progress and cautious recalibration, with PureTech Health and Regional REIT posting notable gains, while PZ Cussons faced market scepticism following a key brand decision.

PureTech Health Advances on Landmark Licensing Agreement

Shares in PureTech Health PLC rose 2.9% to 128 pence after its founded entity, Vor Bio, entered into an exclusive global licensing agreement (excluding China, Hong Kong, Macau, and Taiwan) with Chinese biotech firm RemeGen Co Ltd for telitacicept. The novel dual-target fusion protein has already secured regulatory approval in China for generalised myasthenia gravis, systemic lupus erythematosus, and rheumatoid arthritis.

Under the terms, Vor Bio will pay $125 million in initial consideration comprising $45 million in cash and $80 million in stock warrants and may make further milestone and royalty payments that could exceed $4 billion. In tandem, Vor Bio announced plans to raise approximately $175 million via a private placement to support ongoing clinical development. The agreement positions PureTech as a key player in the growing autoimmune therapeutics market and reflects strong investor confidence in the company’s strategic direction.

Regional REIT Reports Solid Leasing Performance

Regional REIT Ltd gained 2.3% to 120.1 pence after reporting a series of successful leasing activities. Since May 15, the company has completed seven new lettings and eight lease renewals across its commercial property portfolio, generating over £1.6 million in additional annual rental income. This represents a 6.32% uplift in estimated rental value.

Stephen Inglis, CEO of asset manager ESR Europe LSPIM Ltd, highlighted the performance as evidence of the REIT’s capital investment strategy and tenant engagement. “Our ability to drive rental growth and maintain occupancy underscores the strength of our portfolio and market positioning,” he noted. The company remains focused on enhancing income returns and delivering a fully covered dividend.

PZ Cussons Reassesses St Tropez Strategy

In contrast, PZ Cussons PLC fell 3.3% to 73.75 pence following the decision to withdraw its St Tropez brand from a planned sale process. The company cited recent underperformance in the US and broader valuation pressures across the beauty sector.

Despite receiving multiple offers, PZ Cussons has chosen to retain the brand, announcing the formation of a dedicated team to lead its international repositioning. A strategic sales partnership with Emerson Group has also been secured to support renewed growth, particularly in the US market. While the shift signals long-term strategic intent, investor sentiment remains cautious amid ongoing category headwinds.