ReNeuron Group

LN: RENE

£45.8m market cap

144p 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

ReNeuron has changed its focus to concentrate on cell therapy for retinal disorders. The Phase I/II has FDA clearance to use a higher dose and a new UK trial site in Oxford has been added. A pivotal study may start in H221. The CTX cell line for stroke will now be out-licensed. Internally, it will be used to produce exosomes, an emerging new area. Preclinical exosome technology might be used for therapeutic delivery to the brain and in vaccination or treatment of SARS-CoV-2 infections. Our indicative value is adjusted to £107m, formerly £197m, pending full FY20 results due in July.

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 (17.9) (17.2) (45.34) N/A N/A
2020E 6.1 (23.4) (22.8) (60.33) N/A N/A
2021E 3.1 (31.0) (30.8) (83.69) N/A N/A
Industry outlook

Reneuron signed a research agreement with an unnamed major pharmaceutical company in April to explore the potential use of the company’s proprietary exosomes to deliver novel therapeutics. Research has started into using exosomes to deliver viral vaccines. The company now has a stable major shareholder base. The CTX platform has shown preclinical promise for Huntingdon’s disease.

Last updated on 30/06/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (£m) 8.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 6.7 37.1 (33.3)
Relative* 4.3 20.5 (21.4)
52-week high/low 275.0p/75.5p
*% relative to local index
Key management
John Berriman Chairman
Olav Hellebø CEO
Michael Hunt CFO
John Sinden Chief Scientific Officer

Content on ReNeuron Group