ReNeuron Group — Differentiating in exosome drug delivery

ReNeuron Group (AIM: RENE)

Last close As at 28/03/2024

3.38

0.00 (0.00%)

Market capitalisation

2m

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ReNeuron Group — Differentiating in exosome drug delivery

ReNeuron Group, a stem cell-derived exosome technology company, has presented encouraging preclinical data highlighting the enhanced drug delivery capability of its customisable exosome platform (CustomEx) over conventional human embryonic kidney-derived (HEK) exosomes. The company’s CustomEx exosomes displayed a minimum 10-fold increase in cellular uptake across three cell types (endothelial, neural and epithelial) compared to HEK-derived exosomes, with an 18-fold increase observed in endothelial cells. Additionally, when loaded with a therapeutic payload (small interfering RNA, siRNA), a 600% improvement in delivery to the target cell was recorded versus HEK exosomes. The most advanced exosome technologies that have entered clinical development, to date, are HEK-derived exosomes. We believe these results therefore not only provide encouraging signs for the clinical progression of ReNeuron’s exosomes, but may also provide a distinct competitive advantage against HEK competitors. Our estimates are currently under review.

Soo Romanoff

Written by

Soo Romanoff

Managing Director - Head of Content, Healthcare

ReNeuron Group

Differentiating in exosome drug delivery

Preclinical update

Pharma and biotech

7 October 2022

Price

28p

Market cap

£16m

$1.12/£

Gross cash (£m) at 31 March 2022

14.5

Shares in issue

57.1m

Free float

99.7%

Code

RENE

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

Business description

ReNeuron Group is a UK biotech company developing allogeneic cell therapies. The company is engaged in the development of a CTX stem cell therapy candidate, which is in the partnering stage for treating stroke disability. There is a strong preclinical technology base in exosomes and cell therapies.

Analysts

Soo Romanoff

+44 (0)20 3077 5700

Dr Adam McCarter

+44 (0)20 3077 5700

ReNeuron Group is a research client of Edison Investment Research Limited

ReNeuron Group, a stem cell-derived exosome technology company, has presented encouraging preclinical data highlighting the enhanced drug delivery capability of its customisable exosome platform (CustomEx) over conventional human embryonic kidney-derived (HEK) exosomes. The company’s CustomEx exosomes displayed a minimum 10-fold increase in cellular uptake across three cell types (endothelial, neural and epithelial) compared to HEK-derived exosomes, with an 18-fold increase observed in endothelial cells. Additionally, when loaded with a therapeutic payload (small interfering RNA, siRNA), a 600% improvement in delivery to the target cell was recorded versus HEK exosomes. The most advanced exosome technologies that have entered clinical development, to date, are HEK-derived exosomes. We believe these results therefore not only provide encouraging signs for the clinical progression of ReNeuron’s exosomes, but may also provide a distinct competitive advantage against HEK competitors. Our estimates are currently under review.

Year end

Revenue
(£m)

PBT*

(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

03/21

0.3

(13.4)

(29.0)

0.0

N/A

N/A

03/22

0.4

(11.1)

(17.0)

0.0

N/A

N/A

Note: *As reported.

Following a strategic refresh in January 2022, ReNeuron has prioritised its CustomEx exosome technology and established seven strategic developmental partners. Exosomes are an emerging drug delivery technology being developed to address challenges associated with existing platforms (viral vectors and lipid nanoparticles) including tissue specificity, cellular targeting ability and safety. These latest positive results therefore provide additional proof of concept for the potential clinical utility of ReNeuron’s exosomes, in our view.

Notably, the study was able to demonstrate the effective delivery of siRNA, a new class of complex drug modality, in which targeted drug delivery remains a significant challenge. The RNA therapeutic pipeline is poised to deliver further drug candidates, so we view this market as a potential opportunity for ReNeuron to target. While therapeutic exosomes may still be in the early stages of clinical development, demonstrating positive preclinical data has led to the signing of significant licensing deals within the market. This latest data will therefore further promote ReNeuron’s technology platform and may garner heightened interest from potential partners, in our view.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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