Renalytix plc, a company that uses artificial intelligence to diagnose and treat kidney disease, has announced that it is considering selling itself or its assets after receiving an unsolicited takeover offer from a larger competitor.

The company, which is listed on both the London Stock Exchange and the Nasdaq, said that it has launched a formal sale process to evaluate the bid and other possible options, with the aim of maximizing value for its shareholders.

Renalytix did not disclose the identity of the bidder, but said that it is a well-capitalised public company in the same sector. The bidder is interested in acquiring all of Renalytix’s shares, both existing and future.

The company said that it has appointed Stifel Nicolaus Europe Limited as its financial adviser and that it will provide more information to interested parties who sign a confidentiality agreement and agree not to make any public announcements.

Renalytix also said that it may decide to remain independent and continue trading on the stock markets, depending on the outcome of the sale process.

The company added that it is in advanced talks with some of its shareholders and potential new investors to raise more funds, as it has only $2.3 million in cash and $1.4 million in marketable securities as of 3 March 2024. The company has been cutting its operating costs to reduce its cash burn.