ReNeuron Group

LN: RENE

£77.6m market cap

244p last close

ReNeuron is a UK biotech company developing allogeneic cell therapies: CTX neural stem cell products for stroke disability (Phase IIb) and human retinal progenitor cells for retinitis pigmentosa (Phase I/II).

Investment summary

After a second half punctuated by outstanding interim clinical results and partnering, which together contributed to a c 430% year-to-date share price increase, the FY19 financial results now return to focus. The FY19 net loss decreased to £14.3m (£17.6m in FY18), driven by R&D spend of £16.3m and an R&D tax credit of £2.9m. We expect the year-end FY19 cash balance of £26.4m to last into FY21.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 0.9 (20.2) (21.0) (55.66) N/A N/A
2019A 2.7 (18.0) (17.2) (45.16) N/A N/A
2020E 0.0 (24.1) (24.1) (63.67) N/A N/A
2021E 0.0 (27.9) (27.9) (73.74) N/A N/A
Last updated on 18/07/2019
Industry outlook

Limited drug development has targeted chronic stroke to date, which is the area in which ReNeuron is attempting to demonstrate a meaningful reduction in disability. If shown, it would offer a compelling case for further development and/or partnering. The recent striking RP data makes a partnering transaction more likely and has become the focus for investors.

Last updated on 18/07/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (£m) 7.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.7 3.2 161.0
Relative* 2.0 3.1 169.7
52-week high/low 325.0p/47.5p
*% relative to local index
Key management
John Berriman Chairman
Olav Hellebø CEO
Michael Hunt CFO
John Sinden Chief Scientific Officer

Content on ReNeuron Group