ReNeuron Group — A step forward on the Exosome delivery platform

ReNeuron Group (AIM: RENE)

Last close As at 09/10/2024

3.38

0.00 (0.00%)

Market capitalisation

2m

More on this equity

Research: Healthcare

ReNeuron Group — A step forward on the Exosome delivery platform

ReNeuron Group has generated in vivo data for CustomEX, marking a key step towards validating its proprietary stem cell-derived exosome platform. While the precise nature of the data is yet to be disclosed, we view the update as an encouraging sign and believe that it could improve traction for discussions for collaborations and partnerships, a key near-term goal for the company. ReNeuron now aims to broaden its capabilities by focussing on the functional delivery of specific therapeutics payloads, which we believe could include siRNA, mRNA, proteins, small molecules and genes, based on previous studies. Updates are expected in due course, potentially representing an important catalyst for investor attention, provided the data continue to be positive.

Written by

Arron Aatkar

Analyst

ReNeuron-Group_resized

Healthcare

ReNeuron Group

A step forward for the Exosome delivery platform

R&D update

Pharma and biotech

15 September 2023

Price

7.8p

Market cap

£4m

Net cash (£m) at 31 March 2023

7.2

Shares in issue

57.2m

Free float

99.7%

Code

RENE

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

Business description

ReNeuron Group is a UK biotech focused on the development of its stem cell-derived exosome drug delivery platform (CustomEX). The company is progressing the preclinical development of exosome-based therapeutics, utilising its CustomEX technology, which can be optimised for specific tissue targets and payloads, such as siRNA, mRNA, proteins, small molecules, and genes.

Analysts

Dr Arron Aatkar

+44 (0)20 3077 5700

Soo Romanoff

+44 (0)20 3077 5700

ReNeuron Group is a research client of Edison Investment Research Limited

ReNeuron Group has generated in vivo data for CustomEX, marking a key step towards validating its proprietary stem cell-derived exosome platform. While the precise nature of the data is yet to be disclosed, we view the update as an encouraging sign and believe that it could improve traction for discussions for collaborations and partnerships, a key near-term goal for the company. ReNeuron now aims to broaden its capabilities by focussing on the functional delivery of specific therapeutics payloads, which we believe could include siRNA, mRNA, proteins, small molecules and genes, based on previous studies. Updates are expected in due course, potentially representing an important catalyst for investor attention, provided the data continue to be positive.

Year end

Revenue
(£m)

PBT*

(£m)

EPS*
(p)

DPS
(£)

P/E
(x)

Yield
(%)

03/22

0.4

(11.1)

(17.0)

0.0

N/A

N/A

03/23

0.5

(6.7)

(9.5)

0.0

N/A

N/A

03/24e

0.9

(7.1)

(10.5)

0.0

N/A

N/A

03/25e

12.3

3.9

5.7

0.0

1.4

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

As a reminder, CustomEX is a stem cell-derived exosome platform with a unique delivery mechanism for a variety of therapeutic payloads, including nucleic acids, proteins and gene-editing technologies. ReNeuron’s exosome populations are derived from a catalogue of seven proprietary stem cell lines: four neural stem cell lines and three stem cell lines from areas outside of the brain. While the most advanced competitor programmes use exosomes derived from HEK293 stem cells, we believe that CustomEX could differentiate with its diversification in stem cell lines.

ReNeuron has previously reported several proof-of-concept studies exemplifying in vitro (outside of a biological setting) targeting and delivery for all seven of its exosome populations. Further details can be found in our prior update note. Now, ReNeuron has announced the successful generation of in vivo (within a biological setting, ie in animals) data, demonstrating the organ and cellular targeting capabilities of its stem cell-derived exosomes. We believe this announcement is positive for the progress of ReNeuron’s CustonEx platform. The company now plans to focus its research efforts on the functional delivery of specific payloads and management will provide a further update in the near-term. This could facilitate discussions with potential partners and hence represent an important catalyst for the company, in our view, provided the data continue to be supportive.

General disclaimer and copyright

This report has been commissioned by ReNeuron Group and prepared and issued by Edison, in consideration of a fee payable by ReNeuron Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on ReNeuron Group

View All

Latest from the Healthcare sector

View All Healthcare content

Research: TMT

EML Payments — Turning the ship around

EML Payments reported FY23 revenue and underlying EBITDA ahead of the top-end of its guidance range, benefiting from higher interest income and improvements to customer contracts in H223. The company is making good progress with its short-term priorities, and while the Barrenjoey strategic review is ongoing, management has started taking action to return loss-making activities to profitability and to reinvigorate growth in its core businesses. We have upgraded our forecasts to reflect better-than-expected performance in FY23 and identified cost savings.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free