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Research: Healthcare
Ahead of its full FY23 results, Sareum Holdings has received the first instalment (£2m) of its newly announced funding facility (£5m in total). Additionally, management shared an operational update on its lead asset, SDC-1801. The Phase Ia study is progressing as planned and the second part of the study (multiple ascending doses) is expected to start in Q323, subject to approval from the safety review committee. Sareum ended FY23 with a cash balance of £1m, further supported by the announced £5m (gross proceeds) equity prepayment facility, which will be split in five deposits at defined time intervals. Management believes that the prepayment facility, along with expected tax credits of £1.6m, should fund its operations into Q424, thus covering the Phase Ia/b study of SDC-1801.
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Sareum Holdings |
£5m funding to see SDC-1801 through Phase I
Pharma and biotech |
Spotlight - Flash
18 August 2023 |
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Sareum Holdings is a research client of Edison Investment Research Limited |
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Ahead of its full FY23 results, Sareum Holdings has received the first instalment (£2m) of its newly announced funding facility (£5m in total). Additionally, management shared an operational update on its lead asset, SDC-1801. The Phase Ia study is progressing as planned and the second part of the study (multiple ascending doses) is expected to start in Q323, subject to approval from the safety review committee. Sareum ended FY23 with a cash balance of £1m, further supported by the announced £5m (gross proceeds) equity prepayment facility, which will be split in five deposits at defined time intervals. Management believes that the prepayment facility, along with expected tax credits of £1.6m, should fund its operations into Q424, thus covering the Phase Ia/b study of SDC-1801.
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Source: Company data. Note: *EPS figures have been adjusted retrospectively for the 50:1 share consolidation in March 2022. |
After receiving approval for its clinical trial application from the Australian authorities in May 2023, Sareum started its Phase Ia study for SDC‐1801, a novel TYK2/JAK1 inhibitor targeting a range of autoimmune indications, with an initial focus on psoriasis (further details in our prior note). The safety review committee will assess the data from the most recent cohort in Part 1 of the study (single ascending dose), and, if approved, Sareum is likely to advance to Part 2 (multiple ascending dose) of the Phase 1a trial in Q323. We note that Part 2 will run in parallel with the additional dose escalation planned for Part 1 of the study. Management expects full safety data from the Phase Ia trial in H124, which, if favourable, could lead to a Phase Ib trial in psoriasis patients, with a readout expected by end-2024.
In another development, Sareum reported two patent wins in June 2023. The first patent related to SDC-1801 in China for inflammatory or immune disorders. We note that this is the first patent granted to SDC-1801 and patent applications are pending in Europe, the US and other regions. A second patent was granted for SDC-1802 (TYK2/JAK1 inhibitor being developed for cancer immunotherapy) in the US for autoimmune disorders, extending its scope beyond immuno-oncology.
To support its development plans, Sareum secured an equity prepayment facility of up to £5m from RiverFort Global Opportunities (a UK-based investment company) in August 2023 and received the first deposit of £2m against the issue of c 1.95m shares at 1.25p each. Second and third deposits of £0.3m each are likely to be received after three and six months, along with a fourth deposit (up to £1.4m) due in six months (subject to pre-agreed conditions). The balance and final deposit (up to £1m) will be mutually agreed between the parties later. Also, the investors will be issued warrants, equal to 45% of each deposit and exercisable at 40% premium to the relevant reference price, which could extend the cash runway further.
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Research: Energy & Resources
Canacol Energy released its 2022 ESG Report on 9 August. It highlights the company’s desire for a 50% reduction in Scope 1 and 2 emissions by 2035, to achieve carbon neutrality by 2050 and to have no methane emissions by 2026. This reflects Canacol Energy’s position as a top decile upstream performer in the S&P Global Corporate Sustainability Assessment.