Research Tree Research Tree Logo

  • Try our Investor Tool
  • Login
  • Sign Up
  • Providers
  • Companies

Research Tree Logo

  • Login
  • Sign Up
  • Features
  • Pricing
  • RNS/News
  • Contact
  • Try our Investor Tool
  • Login
  • Sign Up
  • Providers
  • Companies
  • Features
  • Pricing
  • RNS/News
  • Short Interest Tracker
  • Blogs
    • Academy
    • Insights
    • News
    • Research Tree
    • The Naked Fund Manager
  • Ideas & Picks
    • Ideas Hub
    • Stock Pick League
    • Themes & Screens Hub
  • Explore Content
    • Regions
      UK Rest of EMEA N America APAC LatAm
    • Sectors
      Automobile Industry Banks Building & Construction Chemicals Discretionary Personal Goods Discretionary Retail Energy Financial Services Food & Drink Food Production Health Household Goods & DIY Industrial Equipment, Goods & Services Insurance & Reinsurance Leisure, Tourism & Travel Media Other Real Estate Resources Staple Retail Technology Telecoms Trusts, ETFs & Funds Utilities
    • Small / Large Cap
      UK100 UK250 UK Smallcap UK Other Main Markets Other
    • Private/EIS
      EIS Single Company EIS/SEIS Funds IHT Products SEIS Single Company VCT Funds
  • Providers
    • Free/Commissioned
      Align Research BRR Media Capital Access Research Edison Equity Development Fidante Partners Five Minute Pitch TV goetzpartners securities Limited Hardman & Co Independent Investment Research Kepler | Trust Intelligence piworld.co.uk Proactive Progressive Equity Research QuotedData Radnor Capital Partners Research Tree Trinity Delta
    • High Net Worth Offering
      Allenby Capital AlphaValue Arden Partners Cenkos Securities Dowgate Capital finnCap First Berlin GMP FirstEnergy Hybridan Liberum Louis Capital Marten & Co Medley Global Advisors N+1 Singer Northland Capital Partners SP Angel Stanford Capital Partners Stockdale Securities Tamesis Partners The Life Sciences Division VSA Capital WHIreland Whitman Howard Zeus Capital
    • Institutional Offering
      Align Research Allenby Capital AlphaValue Arden Partners BRR Media Bryan, Garnier & Co Capital Access Research Cenkos Securities Dowgate Capital Edison Equity Development Fidante Partners finnCap First Berlin Five Minute Pitch TV GMP FirstEnergy goetzpartners securities Limited Hardman & Co Hybridan Independent Investment Research Kepler | Absolute Hedge Kepler | Trust Intelligence Liberum Longspur Research N+1 Singer Northland Capital Partners piworld.co.uk Proactive Progressive Equity Research QuotedData Radnor Capital Partners Research Tree Shore Capital SP Angel Stanford Capital Partners Stifel Stockdale Securities Tamesis Partners The Life Sciences Division Trinity Delta VSA Capital WHIreland Whitman Howard Zeus Capital
    • Video/Audio Interviews
      BRR Media Edison Equity Development Five Minute Pitch TV piworld.co.uk Proactive Research Tree
  • Contact
Companies >
UK >
Biotechnology >
Reneuron Group >
Research >
ReNeuron Group - FY19 prelims after a momentous second half

  • 17 Jul 2019

ReNeuron Group - FY19 prelims after a momentous second half


Reneuron Group | RENE | 122 0 0.0% | Mkt Cap: 38.7m


  • Edison
    • Dr Andy Smith

    • 3 pages

Biotechnology image



 
Biotechnology image



After a second half punctuated by outstanding interim clinical results and partnering, which together contributed to a c 430% year-to-date share price increase, the FY19 financial results now return to focus. The FY19 net loss decreased to £14.3m (£17.6m in FY18), driven by R&D spend of £16.3m and an R&D tax credit of £2.9m. We expect the year-end FY19 cash balance of £26.4m to last into FY21.


ReNeuron’s R&D expense decreased slightly to £16.3m (from £16.7m in FY18) due to the delayed start of the PISCES III Phase IIb study of its CTX neural stem cell therapy product in chronic stroke patients. R&D accounted for 77% of operating expense. The reduced operating loss of £18.3m (vs £20.4m in FY18) also included the costs of running the ongoing Phase I/IIa study of the human retinal progenitor cell (hRPC) cellular therapy product in retinitis pigmentosa (RP). The FY19 net loss was £14.3m (vs £17.6m in FY18), thanks to a £2.9m R&D tax credit (£3.4m in FY18) and foreign currency gains. Year-end FY19 cash was £26.4m, which we expect to provide a runway into 2021.


With the CTX product in an ongoing placebo-controlled Phase IIb study in the US and the most recent positive interim data on ReNeuron’s hRPC product for RP in the Phase I/IIa study, the focus for investors has been on the company’s product pipeline rather than its financials. Clinical trial results from the pipeline have clearly helped the out-licensing of both the CTX and hRPC products to Fosun for China with associated milestone cash inflows. ReNeuron now has the luxury to await later-stage transactions, outside those for smaller territories like Japan and on the exosome delivery platform, until Phase IIb data. We have included a £16m cash inflow as illustrative debt as a placeholder for either a licensing transaction or stock offering in 2021. 


We have updated our model for the FY19 preliminary results and made a number of other changes. We have increased our R&D spend in FY20 and FY21 to reflect the deferred spend from the delayed start to the PISCES III study. The £16m illustrative debt represents either a licensing transaction or a fund-raising in FY21. These two changes reduced our valuation by c 3% but are more than offset by updating our model to reflect the Fosun milestones, R&D tax credits and US dollar strength. Our valuation moves to £198m or 625p per share, from £193m or 610p per share previously. Our probabilities of success remain unchanged for now.


Sign up for free to access

Get access to the latest equity research in real-time from 12 commissioned providers.

Get access to the latest equity research in real-time from 12 commissioned providers.


Get Started
Already a member? Log in here
See all the research we have on this company.

More Content

More Content

Encouragement from interims

Companies: Reneuron Group

Equity Development

Executive Interview - ReNeuron

Companies: Reneuron Group

Edison

H1 results: adjustments to clinical programmes

Companies: Reneuron Group

N+1 Singer

Executive Interview - ReNeuron

Companies: Reneuron Group

Edison

Small Cap Feast

Companies: KP2 KP2 RENE DUKE HYR TRMR SECG PVR OPTI ESL

Hybridan

Useful Links

  • Features
  • Pricing
  • RNS/Newswires Feeds
  • Providers Hub
  • Company Hub

Account

  • Login
  • Free Trial - Join Now
  • Contact
Follow us on Linkedin Follow us on Twitter

Share:

Heap | Mobile and Web Analytics

Copyright © 2019 Research Tree | All Rights Reserved. | Terms of Service and Privacy Policy and Statement on Cookies

Research Tree will never share your details with third parties for marketing purposes. Research Tree distributes research documents that have been produced and approved by Financial Conduct Authority (FCA) Authorised & Regulated firms as well as relevant content from non-authorised sources, who are not regulated but the information is in the public domain. For the avoidance of doubt Research Tree is not giving advice, nor has Research Tree validated any of the information.

Research Tree is an Appointed Representative of Sturgeon Ventures which is Authorised and Regulated by the Financial Conduct Authority.

Tools licensed and contents implemented and optimized by Digital Look Ltd.

DigitalLook |Web Financial Group

©1999-2013 – Digital Look Ltd. A Web Financial Group Company All rights reserved. Legal notice.

Top
  • Home
  • Features
  • Pricing
  • RNS/News
  • Short Interest Tracker
  • Blogs
    • Academy
    • Insights
    • News
    • Research Tree
    • The Naked Fund Manager
  • Ideas & Picks
    • Ideas Hub
    • Stock Pick League
    • Themes & Screens Hub
  • Explore Content
    • Regions
      • UK
      • Rest of EMEA
      • N America
      • APAC
      • LatAm
    • Sectors
      • Automobile Industry
      • Banks
      • Building & Construction
      • Chemicals
      • Discretionary Personal Goods
      • Discretionary Retail
      • Energy
      • Financial Services
      • Food & Drink
      • Food Production
      • Health
      • Household Goods & DIY
      • Industrial Equipment, Goods & Services
      • Insurance & Reinsurance
      • Leisure, Tourism & Travel
      • Media
      • Other
      • Real Estate
      • Resources
      • Staple Retail
      • Technology
      • Telecoms
      • Trusts, ETFs & Funds
      • Utilities
    • Small / Large Cap
      • UK100
      • UK250
      • UK Smallcap
      • UK Other Main Markets
      • Other
    • Private/EIS
      • EIS Single Company
      • EIS/SEIS Funds
      • IHT Products
      • SEIS Single Company
      • VCT Funds
  • Providers
    • Free/Commissioned
      • Align Research
      • BRR Media
      • Capital Access Research
      • Edison
      • Equity Development
      • Fidante Partners
      • Five Minute Pitch TV
      • goetzpartners securities Limited
      • Hardman & Co
      • Independent Investment Research
      • Kepler | Trust Intelligence
      • piworld.co.uk
      • Proactive
      • Progressive Equity Research
      • QuotedData
      • Radnor Capital Partners
      • Research Tree
      • Trinity Delta
    • High Net Worth Offering
      • Allenby Capital
      • AlphaValue
      • Arden Partners
      • Cenkos Securities
      • Dowgate Capital
      • finnCap
      • First Berlin
      • GMP FirstEnergy
      • Hybridan
      • Liberum
      • Louis Capital
      • Marten & Co
      • Medley Global Advisors
      • N+1 Singer
      • Northland Capital Partners
      • SP Angel
      • Stanford Capital Partners
      • Stockdale Securities
      • Tamesis Partners
      • The Life Sciences Division
      • VSA Capital
      • WHIreland
      • Whitman Howard
      • Zeus Capital
    • Institutional Offering
      • Align Research
      • Allenby Capital
      • AlphaValue
      • Arden Partners
      • BRR Media
      • Bryan, Garnier & Co
      • Capital Access Research
      • Cenkos Securities
      • Dowgate Capital
      • Edison
      • Equity Development
      • Fidante Partners
      • finnCap
      • First Berlin
      • Five Minute Pitch TV
      • GMP FirstEnergy
      • goetzpartners securities Limited
      • Hardman & Co
      • Hybridan
      • Independent Investment Research
      • Kepler | Absolute Hedge
      • Kepler | Trust Intelligence
      • Liberum
      • Longspur Research
      • N+1 Singer
      • Northland Capital Partners
      • piworld.co.uk
      • Proactive
      • Progressive Equity Research
      • QuotedData
      • Radnor Capital Partners
      • Research Tree
      • Shore Capital
      • SP Angel
      • Stanford Capital Partners
      • Stifel
      • Stockdale Securities
      • Tamesis Partners
      • The Life Sciences Division
      • Trinity Delta
      • VSA Capital
      • WHIreland
      • Whitman Howard
      • Zeus Capital
    • Video/Audio Interviews
      • BRR Media
      • Edison
      • Equity Development
      • Five Minute Pitch TV
      • piworld.co.uk
      • Proactive
      • Research Tree
  • Contact
  • Sign Up
  • Sign In