ReNeuron Group — Differentiating in exosome drug delivery

ReNeuron Group (AIM: RENE)

Currency in GBP

Last close As at 30/01/2023

GBP0.12

1.12 (10.54%)

Market capitalisation

GBP6m

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.

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 2022 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.

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

More on ReNeuron Group

View All

Research: Metals & Mining

Lepidico — Quantifying exploration’s dividends

Lepidico recently announced a series of impressive drill results at Helikon 4 (including 34.8m at 1.25% Li2O) that extend the zone of mineralisation there both down dip and along strike to the east towards Helikon 3 and Helikon 2. Drilling will continue, with a view to upgrading the mineral resource estimate at Karibib into the measured and indicated categories, which will form the basis of a new mine plan at Karibib, potentially extending the Phase 1 operating life of the project from 14 to 20 years and complementing the company’s chemical plant front-end engineering and design (FEED) process, which is scheduled for completion in November, once procurement optimisation and design refinements are complete. A final investment decision on the project is then anticipated to be made in early Q1 CY23. This note seeks to quantify the financial effects of incorporating the potential resource at Helikon 4 into Karibib’s mine plan.

Continue Reading

Subscribe to Edison

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

Sign up for free