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ReNeuron interims chart a period of significant progress; out-licence deal talks ongoing

"The period under review has been marked by significant progress across our various clinical and research programmes,” said Olav Hellebø, ReNeuron chief executive

ReNeuron Group PLC -

ReNeuron Group PLC (LON:RENE) shares gained on Friday after the biotech firm said it was in ongoing discussions with “commercial third parties” interested out-licence deals across all its programmes.

In morning trading, ReNeuron shares were 6.3% higher at 136p.

The update came alongside the stem cell specialist’s interim results, which showed it made significant operational and financial progress in the six months to September 30.

Chief among the highlights was its tie-up with China’s Fosun, which is worth a potential £80mln in milestone payments and which yielded a £5.4mln upfront sum.

It helped shore up an already fairly robust balance sheet as the group ended the period with just over £21mln in the bank, giving it two years’ cash runway at the current burn rate.  

In the clinic, the company delivered positive top-line results from its phase I/IIa study of patients with the degenerative eye disease retinitis pigmentosa.

An ongoing phase IIa clinical assessment is to be expanded, while further efficacy data is expected next year.

Turning to its CTX stem cell therapy for stroke victims, ReNeuron hopes to accelerate recruitment for its US phase IIb trial with protocol amendments and “other initiatives”.

Meanwhile, the overall size of the study increased from 110 to 130 patients, with a read-out expected in mid-2021.

The half also saw the drug developer ink a grant-funded collaboration initiated with European Cancer Stem Cell Research Institute to develop that will aid the development of its exomes technology.

Exosomes are nanoparticles released by cells and contain a number of active proteins and micro RNAs that are believed to play a key role in cell-to-cell communication.

A growing body of evidence demonstrates that exosomes can modulate cellular immunity and promote the activation of regenerative or repair programmes in diseased or injured cells.

"The period under review has been marked by significant progress across our various clinical and research programmes,” said Olav Hellebø, ReNeuron chief executive.

Taking a closer look at the financials, the interim reveal losses were narrowed to £3.9mln rom £5.36mln, while cash burn for the six months fell to £5.15mln from £7.54mln.

 -- Adds share price --

Quick facts: ReNeuron Group PLC

Price: 137.5 GBX

LSE:RENE
Market: LSE
Market Cap: £43.77 m
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