ReNeuron Group — A step forward on the Exosome delivery platform

ReNeuron Group (AIM: RENE)

Last close As at 22/07/2024

3.38

0.00 (0.00%)

Market capitalisation

2m

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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

Associate 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.

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