Last close As at 05/08/2026
GBP0.23
— 0.00 (0.00%)
Market capitalisation
GBP32m
Research: Healthcare
Sareum Holdings has announced the acquisition of the licence for SRA737, a checkpoint kinase 1 (CHK1) inhibitor, in which the company had previously held a 27.5% economic interest. Following this acquisition, Sareum will be eligible for 63.5% of all future returns from the programme. SRA737 is a clinical-stage asset, having completed two Phase I/II trials with encouraging headline data, and we believe that this deal will provide Sareum with greater control over its development pathway and future plans. The company has also announced an equity raise for gross proceeds of £1.07m, against an issue of 8.56m shares, to an institutional investor. We expect this to provide greater flexibility to Sareum as it advances its pipeline, in particular lead asset SDC-1801, which is approaching Phase II studies, in autoimmune disorders.
The £1.07m funding was executed through an issue of 8.56m shares (6.85% of existing share capital) at a subscription price of 12.5p/share (c 24% discount to the last trading price of 16.5p). This subscription does not entail the issue of attached warrants, although we note that it will have an impact on the exercise price of the warrants issued as part of the last raise in October 2024 (which will now be adjusted to 12.6p per warrant vs 20p previously). The company plans to use these additional funds to support development of the expanded portfolio (including SRA737 and lead programme SDC-1801) and for working capital purposes.
We believe the addition of another clinical-stage asset should bolster Sareum’s pipeline and help manage risks related to binary events, such as trial results. SRA737 is a clinical-stage CHK1 inhibitor targeting the DNA damage response network for the treatment of solid tumours. Developed in collaboration with the Institute of Cancer Research and the CRT Pioneer Fund (CPF), SRA737 was first out-licensed by the CPF to Sierra Oncology in 2016, under which it completed two Phase I/II trials, as a monotherapy and as an adjunct to low-dose gemcitabine, with encouraging headline data. Following GSK’s acquisition of Sierra in 2022, the rights to SRA737 were acquired by a privately held US biopharma in December 2023 before being returned to the CPF in December 2024.
Given Sareum’s previous 27.5% economic stake in the asset, it had limited decision-making rights, but we expect this to change with the licence acquisition. We believe Sareum will seek to out-license the asset to a strategic buyer, leveraging existing clinical data. Note that CHK1 inhibitors, being key regulators of DNA damage, find broad applicability across solid tumours, although clinical progress with first-generation inhibitors has been hindered by off-target toxicities and insufficient efficacy as a monotherapy. SRA737 has shown a favourable safety profile and preliminary efficacy with low-dose chemotherapy in early clinical trials, and therefore we see greater potential in pursuing the candidate as a combination treatment.
|
Historical financials |
||||
|---|---|---|---|---|
| Year end | Revenue (£m) | PBT (£m) | EPS (p) | P/E (x) |
| 6/21 | 0.0 | (1.7) | (2.30) | N/A |
| 6/22 | 0.0 | (2.6) | (3.20) | N/A |
| 6/23 | 0.0 | (4.0) | (4.70) | N/A |
| 6/24 | 0.0 | (4.6) | (4.20) | N/A |
General disclaimer and copyright
This report has been commissioned by Sareum Holdings and prepared and issued by Edison, in consideration of a fee payable by Sareum Holdings. 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 2025 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 sol icitation 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
Research: Financials
OUTsurance released H125 results on 14 March 2025, delivering 52% normalised EPS growth and return on equity (RoE) of 30.8%. South Africa (SA) property & casualty (P&C) delivered 32% earnings and 9% premium growth, while Youi (Australia) recorded 154% earnings and 22% premium growth. SA Life delivered 225% profit growth, while its Irish start-up made losses of ZAR246m (up 289%). Net asset value (NAV) per share was 870ZAc (large dividend payments over the period). It declared an interim dividend of 88.6c/share (up 44.8%). OUTsurance trades at a price to NAV of 7.5x, which is the highest level seen since its unbundling and superior to its peers.