ReNeuron Group — Encouraging data for iPSCs opens potential

ReNeuron Group (AIM: RENE)

Last close As at 18/05/2024

3.38

0.00 (0.00%)

Market capitalisation

2m

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ReNeuron Group — Encouraging data for iPSCs opens potential

ReNeuron Group has presented encouraging preclinical data surrounding the company’s conditionally immortalised induced pluripotent stem cell (CI iPSC) line. The results show that, using the group’s proprietary conditional immortalisation technology, ReNeuron can achieve enhanced control of growth and survival of CI-iPSC-derived cells, including Schwann cells, providing a potentially key differentiator over traditional iPSCs. While we acknowledge that these are early stage results, the latest data may also bode well for the group’s customisable exosome platform (CustomEx) and could further enhance the current exosome offering into new indications and targets. We continue to value ReNeuron at £44.2m or 77p per share.

Adam McCarter

Written by

Adam McCarter

Associate Analyst

ReNeuron Group

Encouraging data for iPSCs opens potential

Preclinical data update

Pharma and biotech

9 December 2022

Price

11.75p

Market cap

£7m

US$1.23/£

Gross cash (£m) at 30 September 2022

10.5

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 focused on the development of its stem cell-derived exosome drug delivery platform (CustomEx). The company operates as a contract research and development organisation and has established partners that are progressing the preclinical development of exosome-based therapeutics, utilising ReNeuron’s CustomEx technology.

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 has presented encouraging preclinical data surrounding the company’s conditionally immortalised induced pluripotent stem cell (CIiPSC) line. The results show that, using the group’s proprietary conditional immortalisation technology, ReNeuron can achieve enhanced control of growth and survival of CI-iPSC-derived cells, including Schwann cells, providing a potentially key differentiator over traditional iPSCs. While we acknowledge that these are early stage results, the latest data may also bode well for the group’s customisable exosome platform (CustomEx) and could further enhance the current exosome offering into new indications and targets. We continue to value ReNeuron at £44.2m or 77p per share.

Year end

Revenue
(£m)

PBT*

(£m)

EPS*
(£)

DPS
(£)

P/E
(x)

Yield
(%)

03/21

0.3

(13.4)

(0.29)

0.0

N/A

N/A

03/22

0.4

(11.1)

(0.17)

0.0

N/A

N/A

03/23e

0.8

(8.9)

(0.13)

0.0

N/A

N/A

03/24e

0.9

(9.6)

(0.14)

0.0

N/A

N/A

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

IPSCs are adult stems cells that have been reprogrammed back into an embryonic-like state, potentially allowing for the development of any type of human cell needed for therapeutic purposes. ReNeuron’s CI-iPSC cell-line technology is currently being developed as a platform in collaboration with University College London. Investigations so far focused on the production of Schwann cells for peripheral nerve damage repair and in the generation of CAR-T and CAR-NK cells for anti-cancer treatment as ‘off-the-shelf’ therapies.

Existing patient-derived (autologous) cell therapies have drawbacks that include patients’ cells potentially being disease compromised, and costly, time-consuming manufacturing. To address these issues, there is an increasing trend within the cell therapy market to move towards ‘off-the-shelf’ products, so we see the latest development of ReNeuron’s iPSC technology as a positive step towards realising such ‘off-the-shelf’ potential .

Additionally, the CI-iPSC platform provides an opportunity to generate any stem cell type and, ultimately, any type of tissue-specific exosome. The enhancement of the CustomEx drug delivery platform forms a critical part of ReNeuron’s new strategy, so we see the iPSC development as highly encouraging.

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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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