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Research: Healthcare
Sareum Holdings has announced the completion of a £2.4m private placement and receipt of another A$1.9m (c £1m) in R&D tax credits from Australian authorities, related to the Phase I clinical trial for its lead asset SDC-1801, a next-generation TYK2/JAK1 kinase inhibitor. Management expects the combined funds to support preparatory activities, including longer-term toxicology studies, as the candidate advances towards Phase II trials in psoriasis patients. As a reminder, the company had presented encouraging Phase I top-line data for SDC-1801 in July 2024, and has now reported further positive insights from the unblinded data (detailed below). Based on the Phase I readout, and supported further by additional data from the planned toxicology studies, we expect Sareum to seek partnering opportunities before proceeding to Phase II, likely in 2025.
Sareum Holdings |
New funding extends runway to Phase II
Pharma and biotech |
Spotlight - Flash
11 October 2024 |
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Sareum Holdings is a research client of Edison Investment Research Limited |
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Sareum Holdings has announced the completion of a £2.4m private placement and receipt of another A$1.9m (c £1m) in R&D tax credits from Australian authorities, related to the Phase I clinical trial for its lead asset SDC-1801, a next-generation TYK2/JAK1 kinase inhibitor. Management expects the combined funds to support preparatory activities, including longer-term toxicology studies, as the candidate advances towards Phase II trials in psoriasis patients. As a reminder, the company had presented encouraging Phase I top-line data for SDC-1801 in July 2024, and has now reported further positive insights from the unblinded data (detailed below). Based on the Phase I readout, and supported further by additional data from the planned toxicology studies, we expect Sareum to seek partnering opportunities before proceeding to Phase II, likely in 2025.
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Source: Company data |
The £2.4m funding was executed through a private placement to institutions and certain high-net-worth individuals against an issue of 11.8m new shares at a subscription price of 20p/share (c 27% discount to the last trading price of 27.5p). We note that each subscriber to the issue will also be entitled to one warrant per share subscribed (five-year maturity period), with an exercise price of 20p. In case of a subsequent equity raise by the company at a lower issue price, the conversion price for the unexercised warrants will be rebased downwards. In addition, Sareum reported receipt of A$1.9m (c £1m) in R&D tax credits from Australian authorities, related to the Phase I clinical trial for SDC-1801, which took place in the country. Management expects the combined funds (c £3.4m gross) to support the company in undertaking further toxicology studies, aiming to bolster its data package to support discussions with regulators and potential licensing partners.
As a reminder, Sareum reported positive top-line data from the Phase I study in July 2024, demonstrating a desirable safety profile, blood plasma levels significantly higher than predicted therapeutic levels, and a long half-life (17–20 hours). Based on the (now available) unblinded data, management has reiterated SDC-1801’s robust safety profile (adverse events similar to placebo and no clinically significant impact on any blood component), an important consideration given the off-target toxicities associated with previous generation JAK inhibitors. Unblinded data from the multiple ascending dose cohorts also demonstrated dose-dependent reductions in three biomarkers of JAK1 and TYK2 activity, which are key mediators of major inflammatory pathways. While several TYK2 inhibitors are currently under development (Bristol Myers Squibb’s Sotyktu was approved by the FDA in 2022), Sareum asserts that the dual inhibition property of SDC-1801 potentially offers greater therapeutic potential. We will present a more detailed analysis of Sareum’s ongoing programmes following the release of the full-year results later this month.
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Research: Investment Companies
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