Tinnitus Treatment Solutions and food standards and sanitation company RF Biocidics are among the casualties of the $146.6m writedown, with capital being diverted to more promising subsidiaries.

Allied Minds, the US-based life science and technology commercialisation company, on Wednesday announced a $146.6m writedown on the value of seven business.

The discontinuation of funding for these subsidiaries will free up $14m of capital spend budgeted for 2017.

The company has said it will seek “strategic alternatives” for these businesses, including liquidation, sales or transfers of legal entities or assets. The capital freed up from the writedown will be diverted to its more promising spinouts.

The seven companies being discontinued are conductive medical materials manufacturer Biotectix, compact brain imagining creator Cephalogics, medical sample preservation solution provider CryoXtract, inflammatory disease and cancer treatment developer Novare Pharmaceuticals, mobile and wireless security provider Optio Labs, food standards and sanitation company RF Biocidics and tinnitus screening and treatment provider Tinnitus Treatment Solutions.

The company has suffered a 34% share price fall since the announcement on Wednesday.

Last year, Allied Minds collected £64m ($81m) following an equity placing that included a £15m contribution from asset manager Woodford Investment Management, which is now facing a paper loss of £35m on its investment.

Last month, the company appointed Jill Smith as interim chief executive, replacing co-founder Chris Silva.

Smith said: “There is tremendous potential across our portfolio and pipeline and I am excited by our prospects and the opportunities to drive accelerated commercialisation. Today’s measures are a necessary step in refocusing the company on the areas where we have most potential.

“While many of the discontinued subsidiaries have demonstrated progress against technical milestones, the path to commercialisation is unlikely to yield appropriate financial returns.”