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Sareum has announced a strategic collaboration with Receptor.AI, a ‘techbio’ company harnessing generative AI to accelerate drug discovery across a range of targets, including TYK2. Sareum had previously reported positive signals from early preclinical testing of six of its TYK2/JAK1 compounds, thr
Sareum Holdings plc
Sareum Holdings has reported the initiation of toxicology studies required ahead of the Phase II studies for its lead TYK2/JAK1 asset, SDC-1801. We view this as a key milestone in SDC-1801’s development plan, with results likely to bolster any upcoming discussions with potential licensing partners.
The toxicology studies program for its lead TYK2/JAK1 inhibitor, SDC-1801, are starting. In 2024, SDC-1801 which is a dual inhibitor targeting autoimmune diseases, completed Phase 1 clinical trials in healthy volunteers which demonstrated a favorable safety and pharmacokinetic profile. These toxicology studies are the next key regulatory milestone on the pathway to a Phase 2 development programme. The studies are designed to support longer-term dosing of SDC-1801 and will investigate the general toxicology and potential of SDC-1801 to interact with other drugs. The initial clinical focus is on psoriasis (chronic inflammatory skin disease) and these toxicology studies are an important step in advancing Sareum’s autoimmune drug candidate pipeline. The studies are being conducted at an established Contract Research Organisation and are expected to complete in Q4 2025. Sareum continues to make progress, in parallel, with its manufacturing and formulation optimisation activities to support further development. The Interims to December 2024 reported (on 25 March) cash of £4.1m, excluding the £1.1m raised in March 2025 at 12.5p. The loss before tax reduced to £1.33m compared to a loss of £2.5m in the prior interim period (H1 Dec 2023) which included Phase 1a clinical trial costs. Hybridan’s June 2025 forecast for operational losses are unchanged with cash estimated at £2.5m at the end of June 2025. Hybridan’s Comment: SDC 1801’s development journey seems to be accelerating, potentially towards commercialisation by out licencing or partnering.
Progress is reported on Sareum’s most advanced assets which are the foundation of its near-term clinical strategy and development priorities. The October 2024 and March 2025 funding enables both simultaneous pipeline work, as well as new opportunities in the constantly evolving therapeutic landscape for kinase inhibitors. Preclinical studies have been carried out to evaluate the potential of the TYK2/JAK1 inhibitors for autoimmune diseases in central nervous system indications (CNS). The study involved six compounds from Sareum's proprietary Sareum Kinase Inhibitor Library (SKIL) platform, tested in preclinical models to assess their ability to cross the Blood-Brain Barrier (BBB) which is a key requirement for CNS drug development. Three compounds demonstrated meaningful BBB penetration, with one showing strong levels of free drug in the brain. This work reflects growing scientific and commercial interest in the role of TYK2 inhibition in neuroinflammatory diseases such as Multiple Sclerosis, Parkinson's Disease, and Alzheimer's Disease which are areas with significant unmet medical need. The next step includes whether to progress one or more compounds into preclinical development. In March 2025, Sareum secured full operational control of the licence for SRA737, which is a clinical-stage oral, selective Checkpoint kinase 1 inhibitor that targets cancer cell replication and DNA damage. Sareum has now received the full clinical dataset for SRA737 including the Trial Master File and all associated documentation amounting to around 235Gb of data (incidentally this equals about 100 high-definition movies in equivalent Gb size). Sareum will be conducting a comprehensive review of the programme's potential considering the timing and cost of the strategic options available to it, which include re-licensing or advancing it in-house with or without a partner. In 2024, SDC-1801 a dual TYK2/JAK1 inhibitor targeting autoimmune diseases successfully achieved a significant milestone by completing Phase 1 clinical trials in healthy volunteers. Comprehensive data from the Phase I study have been published on the Australian New Zealand Clinical Trials Registry. 16-week toxicology studies to support longer-term dosing in patients are expected to commence in May 2025, with completion anticipated in Q4, which gives further potential to substantially enhance SDC-1801’s value for licensing deals. SDC-1802 is being developed as an inhibitor with a potential application for cancer immunotherapy (helping the immune system fight cancer). Sareum is continuing translational work to define optimal cancer indications and patient populations prior to advancing SDC-1802 toward first-in-human studies. The Interims to December 2024 reported (on 25 March) cash of £4.1m, excluding the £1.07m raised in March 2025 at 12.5p. The loss before tax reduced to £1.33m compared to a loss of £2.5m (H123 to end Dec 2023) which included Phase 1a clinical trial costs. Hybridan’s June 2025 forecast for operational losses are unchanged with cash estimated at £2.5m. We will be considering the broader pipeline of opportunities for 2026 as the Company decides on priorities. Hybridan’s Comment: After these comprehensive progress updates on the main assets, we believe it will be followed by news on how best to add value to them, be it by in-house development, licencing or through partnering.
Sareum Holdings’ H125 results (to 31 December 2024) summarised a period of operational progress and an improved capital position, with successful fund-raising. Since the completion of the Phase I trial for lead asset SDC-1801 in June 2024, the focus has been on formulation optimisation and drug pro
The Interims to December 2024 reported cash of £4.1m, excluding the £1.1m raised in March 2025 at 12.5p. There is a loss before tax reduced to £1.33m, compared to a loss of £2.5m (H123 to end Dec 2023) which included Phase 1a clinical trial costs. There are significant operational highlights in the development pipeline with SDC-1801, SRA737 and SDC-1802 as Sareum advances the next generation of kinase inhibitors for autoimmune disease and cancer. Kinase inhibitors block a type of enzyme called a kinase and are a well-established class, with multiple approved drugs to treat patients with numerous cancer and autoimmune diseases. Sareum is positioning its lead therapeutic candidate SDC-1801 to be the best-in-class TYK2/JAK1 inhibitor for autoimmune diseases. The initial focus is on a once daily treatment for psoriasis, a serious skin disease affecting over 60 million adults worldwide, which represents a market opportunity exceeding $30bn. SDC-1801 successfully completed a significant milestone by passing Phase 1 clinical trials for autoimmune disease. Phase 1 defines the dose (single and multiple ascending dose), safety, and effectiveness. SAR has strengthened its IP with patents in US, Japan, and China. This includes the chemical structure and its use in treating inflammatory diseases. SDC-1801 is being prepared for Phase 2 clinical trials in mid-2025 with necessary toxicology studies, where a positive result would substantially enhance its value for licensing deals. Since December, Sareum secured control of the licence for SRA737 and will receive 63.5% of revenues. SRA737 completed two phase 1/2 studies in patients with advanced cancers, one as a single agent and the other in combinations. Preclinical data in disease models indicate that SRA737 may be effective in combination with targeted therapies and low-dose gemcitabine in ovarian cancers, and immunotherapy in lung and colon cancers. An Investigational New Drug application has been approved by the US Food & Drug Administration. Sareum is in a stronger position to seek new development opportunities including a licensing deal and at relatively small incremental cost. SDC-1802 is being developed and is an inhibitor with a potential application for cancer immunotherapy (helping the immune system fight cancer). The additional funding enables further translational and preclinical development studies. The recent financing enables simultaneous pipeline work, as well as new opportunities in the constantly evolving therapeutic landscape for kinase inhibitors. In addition, there is a renewed opportunity with SRA737 although there are some costs associated with maintaining its IP and reviewing/updating its data package. We have also increased the cost of preclinical studies for SDC-1802, consequently FY June 2025 investment has been increased by a further £0.3m to drive operational highlights. Hybridan’s Comment: We estimate a 15-month cash runway to progress the pipeline and clinical data. This should facilitate engagement with potential licensing and commercialisation partners at an enhanced value
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 cl
The licence for SRA737 became available following the programme's return from a US-based biopharma company. As from December 2024, the licence reverted to the CRT Pioneer Fund (CPF). Sareum has now acquired this licence, and the economic terms have been renegotiated, so Sareum will receive a net 63.5% of all future revenues, up from 27.5%. The remaining interests are divided between CPF and Cancer Research Technology, the commercialisation arm of Cancer Research UK. SRA737 is a clinical-stage oral, selective Checkpoint kinase 1 inhibitor that targets cancer cell replication and DNA damage repair mechanisms. It was discovered and initially developed by scientists at The Institute of Cancer Research in collaboration with Sareum, with funding from Sareum and Cancer Research UK. Given the clinical data package, Sareum considers it will be a valuable asset and that by gaining control of the licence, Sareum is in a stronger position to seek new development opportunities. There are minimal ongoing costs, which are limited to material and data storage, and intellectual property management. A funding at 12.5p raising £1.07m has also been announced. The funds will be used to support the development of the expanded portfolio, which now includes SRA737, as well as for general working capital purposes. The last funding in October 2024 raised £3.4m at an aggregate price of 20.1p. Sareum is developing the next generation of JAK kinase inhibitors through additional development work. Sareum intends to position SDC-1801 as a best-in-class TYK2/JAK1 inhibitor for autoimmune diseases. The initial focus is on psoriasis, a skin disease affecting over 60 million adults worldwide, which represents a market opportunity exceeding $30bn. We anticipate the accelerated development of SDC-1801, to prepare the asset for Phase 2 clinical trials. SDC-1801 is due to start the longer-term toxicology studies needed to support these clinical trials in patients. Their successful completion would represent a significant milestone and so substantially enhance its potential value for licensing deals with large pharma companies. The Interims to December 2024 are due to be reported before the end of March and we will wait until then to review forecasts. Hybridan’s Comment: There are sufficient funds in place to progress the value proposition with the potential for further studies on SDC-1801, SDC-1802 and SRA737, therein building their data packages. This will help to facilitate further engagement with potential licensing and commercialisation partners.
Sareum Holdings’ FY24 results summarised an active period for lead asset SDC-1801, a dual TYK2/JAK1 inhibitor, which successfully completed Phase I trials in Australia and is now undergoing preparatory work to commence Phase II studies, likely in psoriasis patients. The recently reported unblinded data noted robust pharmacokinetic (PK)/pharmacodynamic (PD) properties and reiterated the drug’s desirable safety profile. While Sareum had previously proposed a smaller Phase Ib study, the plan has pivoted to running a larger Phase II trial, which requires a long-term (c 16 weeks) toxicology study before initiation. Sareum recently secured £3.4m in equity funding and a further c £1m in R&D tax credits, which management believes will be sufficient to complete the Phase II preparatory activities and fund preclinical work on its second asset, SDC-1802. We believe Sareum will be seeking partnering opportunities to support Phase II development of SDC-1801.
The Finals to June 2024 reported increased operating losses at £4.6m (FY23:£4.0m),mainly reflecting the continued higher level of R&D investment which successfully completed the Phase 1 clinical trial of SDC1801, its lead candidate, in the autoimmune disease programme. The next development stages could be less costly as no clinical trials are currently scheduled, we therefore anticipate a reduced operating loss for June 2025 with net cash of c. £1.9m. The focus remains on developing the next generation of kinase inhibitors JAK kinase through additional development work. Sareum intends to position SDC-1801 as a best-in-class TYK2/JAK1 inhibitor for autoimmune diseases. The initial focus on psoriasis, a skin disease affecting over 60 million adults worldwide, represents a market opportunity exceeding $30bn. The clinical trial demonstrated that SDC-1801 achieved blood plasma levels well above the predicted therapeutic exposure, with a long half-life indicating that once-daily dosing can be possible. Importantly, no deaths or serious adverse events associated with the drug are reported and mild to moderate adverse events were similar in each of the drug and placebo arms. The observed favourable safety and pharmacokinetic profiles should give SDC-1801 a significant advantage over competitors as it allows higher doses and therefore potential for increased efficacy with fewer side-effects, when compared to existing therapies in several autoimmune conditions with unmet medical needs. Since the year-end, £3.4m was raised at an aggregate price of 20.1p, additionally it received a A$1.9m (c. £1m) tax credit from Australia for running the Phase 1 clinical development. Combined, this funding allows the accelerated development of SDC-1801, to prepare the asset for Phase 2 clinical trials. SDC-1801 is due to start the longer-term toxicology studies needed to support these clinical trials in patients. Its successful completion would represent a significant milestone and so substantially enhance its potential value for licensing deals with large pharma companies. There is planned activity and investment in the preclinical development on its SDC-1802 which is a cancer immunotherapy programme. The recent funding will accelerate the translational studies needed to support it to define the optimal cancer application before completing toxicology and manufacturing studies. Hybridan’s Comment: The success of the Phase 1 trial attracted further investment so there are sufficient funds in place to progress value adding studies. This will help to build the data package to facilitate engagement with potential licensing and commercialisation partners.
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 completed a fundraise of c.£2.4m at 20p, with a 1 for 1, five-year warrant at 20p. The placing was with high-net-worth individuals and an institution. In addition, a tax credit from Australia for c. £1m (A$1.9m) has been received for running the Phase 1 clinical trial. This funding enables the accelerated development of its lead drug candidate SDC-1801, including longer-term toxicology studies, preparing it for the value enhancing Phase 2 clinical trials. SDC-1801 is progressing its longer-term toxicology studies which are needed to support Phase 2 clinical trials in patients. Successful completion would represent a significant milestone and so substantially enhance the potential value of SDC-1801. This is building upon the highly encouraging Phase 1 trial in July, which demonstrated a favourable safety profile. It achieved blood plasma levels exceeding the predicted therapeutic exposure, with a long half-life of up to 20 hours without observing adverse events. This is evidence that safe blood levels of SDC-1801 were able to significantly inhibit major inflammatory pathways. Sareum believes dual TYK2 and JAK1 inhibition of SDC-1801 offers significant potential in autoimmune disease (e.g. Rheumatoid Arthritis, Multiple Sclerosis, Inflammatory Bowel Disease and Psoriasis) compared to agents that block just one of the two kinases. Through this additional development work, Sareum intends to position SDC-1801 as a best-in-class TYK2/JAK1 inhibitor for autoimmune diseases, with an initial focus on psoriasis—a condition affecting over 60 million adults worldwide, representing a market opportunity exceeding $30 billion. The planned toxicology studies should further validate the safety and tolerability of SDC-1801 over an extended period, providing additional data for regulatory submissions to conduct future clinical studies. SDC-1801 is aiming to be best-in-class by offering increased efficacy compared to existing therapies in several autoimmune conditions where there are serious unmet medical need. These studies enhance the strategic options for Phase 2 development, including the potential discussion with partners and collaborators. Hybridan’s Comment: The year-end June 2024 report is due, as last year it was announced in October. The £3.4m post-year end funding when added to existing cash should extend the development runway to Q3 2025, at a similar burn rate. Assuming the further data are positive, they could significantly enhance SDC-1801’s value proposition to potential out licensing partners
Sareum announces it has received a Notice of Allowance from the China National Intellectual Property Administration for Crystalline Forms of SDC- 1801. This is the first patent protecting these crystalline forms in any territory and it’s likely that Japan, the US and European territories will follow. This Chinese Patent is expected to be granted by the end of 2024 and will provide significant protection on several crystalline forms of SDC-1801 and in the method of their application. It builds and complements recent approvals protecting the molecular structure in all major territories and this extends the life-cycle of the patent estate. Sareum believes dual TYK2 and JAK1 inhibition of SDC-1801 offers significant potential in autoimmune disease (e.g. Rheumatoid Arthritis, Multiple Sclerosis, Inflammatory Bowel Disease and Psoriasis) compared to agents that block just one of the two kinases. July’s encouraging data from the Phase 1a Trial showed that high blood levels can be achieved without serious adverse side effects. Further data, unblinded from drug/placebo recipients, including details of any mild or moderate adverse events and biomarkers of TYK2 and/or JAK1 inhibition, will soon be available. Along with the strengthening of the IP, the confidence is building for the successful clinical development of SDC-1801 for addressing autoimmune diseases. Hybridan’s forecasts: The finals to June 2024 are usually reported in October and we maintain our forecast of £1.5m of cash (excluding further R&D tax credits) which is c. 6 month runway, Assuming the further data is positive, the management may seek to out-license SDC-1801 to fund its future clinical development.
Sareum today announced that it has received a Notice of Allowance from the US Patent and Trademark Office (USPTO) for a patent on SDC-1801, a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases. The US patent, application number US2021387981, will offer substantial protection on the chemical structure of SDC-1801 and an analogue (a compound that is not identical but similar to the chemical structure of 1801), their use in treating inflammatory diseases and in certain methods of their chemical synthesis. Sareum has now secured patent coverage in the major territories, following patent approvals by the European Patent Office, China National Intellectual Property Administration and Japan Patent Office for the same protections. The Company expects the US patent to be granted by the end of 2024, subject to the fulfilment of certain formalities with the USPTO. Sareum believes that dual TYK2 and JAK1 inhibition of SDC-1801 offers significant potential in autoimmune disease compared to agents that block just one of the two kinases. SDC-1801 Phase 1 clinical trial: On 1 July 2024, Sareum provided positive topline data from its Phase 1a clinical trial of SDC-1801. Although data remains blinded, there appears to be no significant changes in blood cell counts or increases in serum creatinine levels, which may be dose limiting side-effects of brepocitinib, currently the most advanced TYK2/JAK1 dual inhibitor. This stage of the SDC-1801 clinical trial demonstrates that high blood levels of a dual TYK2/JAK1 kinase inhibitor can be achieved without serious side effects. Together with the long half-life observed, management believes that this potentially gives SDC-1801 significant advantages over its competitors. Half-life is an estimation of the time it takes for an initial concentration of SDC-1801 to be reduced by half in the body. Sareum expects that further data, unblinded from drug/placebo recipients, including details of any mild or moderate adverse events and biomarkers of TYK2 and/or JAK1 inhibition, will be available in Q3 2024. Hybridan’s forecasts: We forecast Sareum ends its financial year in June 2024 conservatively with £1,461k in cash. Assuming the further data, unblinded from drug/placebo recipients, is also positive, we think it may be time for management to seek the out-licensing of SDC-1801 on the back of good clinical results or else it may need to seek further funds for a Phase 2a clinical study in psoriasis patients. For
Sareum announced positive topline data from its Phase 1a clinical trial of SDC-1801, a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases. Sareum believes that dual TYK2/JAK1 inhibition offers the potential for increased efficacy in psoriasis, compared with existing approved oral therapies. The results are summarised as follows: • Blood plasma levels of SDC-1801 significantly in excess of the predicted therapeutic exposure were achieved, with a half-life of between 17 and 20 hours observed, which suggests that once-daily dosing will be possible. Half-life is an estimation of the time it takes for an initial concentration of SDC-1801 to be reduced by half in the body. • No deaths or serious adverse events due to SDC-1801 were reported. • Although data remains blinded, there appear to be no significant changes in blood cell counts or increases in serum creatinine levels, which may be dose limiting side-effects of brepocitinib, currently the most advanced TYK2/JAK1 dual inhibitor. Outlook: The success of this stage of the clinical trial demonstrates that high blood levels of a dual TYK2/JAK1 kinase inhibitor can be achieved without serious side effects. Together with the long half-life observed, management believes that this potentially gives SDC-1801 significant advantages over its competitors. The Company expects that further data, unblinded from drug/placebo recipients, including details of any mild or moderate adverse events and biomarkers of TYK2 and/or JAK1 inhibition, will be available in Q3 2024. Hybridan’s forecasts: We now forecast Sareum ends its financial year in June 2024 conservatively with £1,461k in cash by reflecting the £111k received (RNS on 7 May 2024) and by removing the £761k financing expense from the income statement since all the outstanding balance to RiverFort has now been repaid with the issuance of shares. Assuming the further data, unblinded from drug/placebo recipients is also positive, we think it may be time for management to seek the out-licensing of SDC-1801 on the back of good clinical results or else it may need to seek further funds for a Phase 2a clinical study in psoriasis patients.
Sareum Holdings has announced positive top-line data from the Phase Ia clinical trial for SDC-1801, its lead asset, a novel TYK2/JAK1 inhibitor targeting autoimmune conditions. The results, which include data from the multiple ascending dose (MAD) arm, reiterate the drug-supportive safety profile and once-daily dosing potential, complementing the preliminary data released in February 2024. Notably, no significant change in serum creatinine levels (which tends to affect kidney function) was observed in SDC-1801 treatment, a potential limitation of the TYK2/JAK1 inhibitor category leader, brepocitinib, as seen in several clinical trials. Full, unblinded data from the Phase I study will be available in Q324 and will potentially be followed by a Phase IIa study in psoriasis patients.
We are ceasing coverage of Sareum Holdings. Our last TP was 176p and our recommendation was Buy.
Sareum Holdings’ H124 results highlighted the company’s swift progress for lead asset SDC-1801, since gaining regulatory approval in Australia to start human studies in mid-CY23. SDC-1801, a TYK2/JAK1 inhibitor targeting the autoimmune space, has reported a good safety profile to date and top-line data for the ongoing Phase Ia study are expected in Q2 CY24, a key catalyst for the company. The TYK2 class’s safety and efficacy has been validated by the likes of Sotyktu and TAK-279, and SDC-1801’s dual inhibition may provide differentiation, in our opinion. Funding, however, remains an overhang (period-end cash of £0.4m; operating loss of c £2.5m in H124) and will likely dictate the timing/pace of the Phase IIa study in psoriasis patients, currently planned for end-CY24. We expect the recent £2.3m capital raise and upcoming tax credits (£0.7m) to offer some headroom but anticipate the need for further funds in CY24.
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Pete joined DSW Capital in September 2021 to help facilitate the IPO and is currently the Business Development & Operations Director and Company Secretary. Pete will continue to oversee IT, Recruitment, Facilities Management, Compliance and People Development in his new role as COO, whilst also supporting on Marketing, Investor Relations and stakeholder engagement. Filtronic 37.2p £80.8m (FTC.L) The designer and manufacturer of products for the aerospace, defence, space and telecoms infrastructure markets announces that Richard Gibbs, the Company's Chief Executive Officer, has informed the Company of his decision to step down from executive responsibilities at the end of the current financial year. Richard will relinquish his role of CEO and board member with effect from 13 May 2024 but will continue to be available to support the growth ambitions of the Company until November 2024. Gaming Realms 35.7p £105.2m (GMR.L) The developer and licensor of mobile focused gaming content announces its annual results for the year ended 31 December 2023. Revenue increased 26% to £23.4m (2022: £18.7m), adjusted EBITDA increased 29% to £10.1m (2022: £7.8m) and the profit before tax for the year increased 47% to £5.2m (2022: £3.5m). Furthermore, the year-end cash balance increased to £7.5m (2022: £2.9m), with the Company remaining debt free. Looking forward, the Company is well placed to deliver further growth in new and existing markets. The launch in the regulated Portuguese market in Q3 2023 along with securing licenses for West Virginia and Greece, signifies the Company’s ongoing commitment to increasing distribution and market diversification. Intercede 114.5p £66.7m (IGP.L) The cybersecurity software Company specialising in digital identities today announces further contract and subscription renewals, in excess of $4m in value. Intercede confirms the following order with a large US Federal Government agency for MyID CMS, totalling $3.45m in annual subscription renewal on a longstanding existing project for the period from 1 April 2024 to 31 March 2025 and the pricing has been agreed for a base year (2024/2025) plus four incremental years. Secondly a significant MyID PSM subscription renewal and expansion for an NHS Trust, totalling £0.19m over three years commencing 1 April 2024, has been secured. MTI Wireless Edge 46.5p £40.9m (MWE.L) The technology Company focused on comprehensive communication and radio frequency solutions across multiple sectors announces that its antenna division has received a repeat order for the manufacture of military antennas totalling approximately US$1.2m to be delivered within six months. Naked Wines 57.1p £42.3m (WINE.L) The Company confirms the appointment of Rodrigo Maza as Group Chief Executive Officer effective from today, the first day of the Group's 2025 financial year and also announces the appointment of Paul Calandrella as General Manager, Naked Wines USA. Paul will join the Group from mid-April bringing two decades of experience in consumer-focused roles in both brand and retail, including at Amazon, REI and, most recently, a venture-backed, re-commerce startup. Sareum Holdings * 11.75p £8.4m (SAR.L) The Company announces that due to excess demand for the Company's shares through the WRAP Retail Offer (announced on 28 March 2024), the Company has elected to increase the size of the WRAP Retail Offer. The Company is delighted to be oversubscribed having crossed the original target of £300,000, and the Board has therefore decided to accept excess demand from shareholders up until the original deadline of 12pm today. The Company will provide another update in due course when the final demand has been received. The Mission Group 21p £19.1m (TMG.L) The digital marketing and communications Group Agencies announces its final results for the year ended 31 December 2023. Revenue increased to £86.3m (2022: £79.6m) and the reported loss before tax was £10.9m (2022: 3.7m profit). The outlook for 2024 trading has started well and in line with expectations.
SAR WINE MWE IGP GMR FTC DSW SNDA
28th March 2024 Happy Easter @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. 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As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU ("MIFID II Directive"); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority's Conduct of Business Sourcebook). This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority's Conduct of Business Sourcebook. Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world. Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP. Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: Asimilar Group Plc (AQSE:ASLR) has left the Aquis Stock Exchange What’s baking in the oven? ** Potential**** Initial Public Offerings: 21 March 2024: Helix Exploration is pursuing the exploration, commercial development and monetisation of a non-hydrocarbon associated helium rich gas structure in the Ingomar Dome located in central Montana, USA. The Company announces its intention to list its shares on AIM. Total capital to be raised on Admission of up to £7.5m. Expected Admission date of early April 2024. 18 March 2024: European Green Transition is developing a portfolio of green economy assets in Europe which aims to capitalise on the opportunity created by the green energy transition and announces its intention to conduct a fundraise and to list its ordinary shares on AIM. The Company intends to implement a disciplined M&A focused model and has already acquired a portfolio of assets, notably their principal Olserum Rare Earth Element (REE) project. Reverse Takeovers: Change of Market: Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs research@hybridan.com Banquet Buffet*** Audioboom 242.5p £39.7m (BOOM.L) The global podcast company announce the continued expansion of its creator network through new exclusive partnerships with top tier podcasts including Pretty X Unfiltered, BDA with Katherine Schwarzenegger, Soder, Omnibus, Do We Know Them?, and George Conway Explains It All To Sarah Longwell. These shows are expected to contribute more than 4 million downloads per month to the Audioboom Creator Network. Expansion of the podcast partnerships has been integral to the Company establishing the fourth biggest podcast network in the US. Baron Oil 0.0575p £14.7m (BOIL.L) The oil and gas exploration and appraisal company, provides an update in relation to the offshore United Kingdom Licence P2478 (Licence), in which Baron holds a 32% interest. Offshore UK Licence P2478 will be surrendered to the UK North Sea Transition Authority (NSTA) on 31 March 2024, following unavoidable and significant delays to the acquisition of 3D seismic data, as had been stipulated in the Deed of Variation concerning the extension to Phase A of the Licence. Commitments have been fulfilled and there remain no further obligations beyond the statutory submission of a relinquishment report. Coro Energy* 0.19p £5.4m (CORO.L) The South East Asian energy company with a natural gas and clean energy portfolio, announces that binding Key Terms have been agreed for the sale and purchase of the domestic portion of Mako gas with PT Perusahaan Gas Negara Tbk (PGN), the gas subsidiary of PT Pertamina (Persero), the national oil company of Indonesia. Under these binding Key Terms, Conrad, the operator of the Duyung PSC, and PGN will agree in good faith and sign a fully termed Gas Sales Agreement (GSA) for the domestic portion of the gas produced from the Mako field located in the Duyung Production Sharing Contract (PSC). Coro has a 15% working interest in the PSC. The Company further notes updates in Mako Gas Field Resources. The net attributable to Coro 2C resources are reduced from 42.1 to 36.6 Bcf gas. Revisions pertain to the revised FID timing and delay in Mako field production startup until mid-2026. Global Connectivity* 0.425p £1.5m (AQSE:GCON) The Company focused on communication services and technologies that enhance connectivity, announces that the Board has agreed that the terms of the warrants attached to shares subscribed during its IPO in October 2020, which total 101,622,400 warrants, will be amended. The Company are extending the warrant exercise period by two years from 21 April 2024 to 20 April 2026 for the 100,000,000 investor warrants and decreasing the warrant exercise price to 1.5p per share. The 1,622,400 adviser warrants which expire on 21 October 2025, will be extended by six months to 20 April 2026 and on the same terms at a warrant exercise price of 1.5p per share, which will take effect at the same time as the 100,000,000 investor warrants are being extended and amended. Journeo 275p £45.3m (JNEO.L) The provider of information systems and technical services to transport operators and authorities, announces it has received a £1.5m purchase order from Swansea Council. The purchase order is for the manufacture, installation and maintenance of a range of the latest Journeo Thin-Film Transistor (TFT), Liquid Crystal Display (LCD) and interactive totem technologies. The revenues are included in management's expectations of performance for the current financial year and add to the Company's strong order book, providing further future revenue visibility. MediaZest* 0.0625p £1.1m (MDZ.L) The creative audio-visual solutions provider, announces an update ahead of its Annual General Meeting (AGM) to be held at Unit 9, Woking Business Park, Albert Drive, Woking, GU21 5JY at 11:00 a.m. today. Ongoing long term project roll outs with existing customers have continued into FY24 as expected, with new projects confirmed with Pets at Home and Lululemon in the UK, a first LED installation for Arc'Teryx at its London Flagship store, and further orders secured with a large global automotive client in Europe. The Board is confident in MediaZest’s ability to deliver year-on-year growth, alongside targeting a return to profitability. Microlise Group 140p £162.3m (SAAS.L) The provider of SaaS based transport technology solutions to fleet operators, announces that it has signed an initial 5-year contract for a total value of AU$20M (approximately £10.6m), with WooliesX, part of the Woolworths Group, Australia's largest supermarket chain. WooliesX has selected Microlise to deploy applications across its entire online delivery fleet operation throughout Australia. WooliesX roll out of Microlise's solutions has already begun, with the remainder taking place across the rest of 2024. One Heritage Group* 10p £3.9m (OHG.L) The UK-based residential developer focused on the North of England, yesterday announced its interim results for the six months ended 31 December 2023. Revenue was £9.15m, up 59% (H1 FY23: £5.75m), as a result gross profit improved by £0.44m to a profit of £0.16m (H1 FY23: loss £0.28m). Net debt was £18.67m (H2 FY23: £16.94m) an increase of £1.73m. Post period, the Company announced Practical completion of St. Petersgate, Stockport and North Church House, Queen Street, Sheffield. The Company is on track to deliver strong revenue for FY24, driven by robust pipeline of property sales. Quiz 5.4p £6.7m (QUIZ.L) The omni-channel fashion brand, specialising in occasion wear and dressy casual wear announces that Tarak Ramzan, Chief Executive Officer (CEO) and founder of the business, is to step down as CEO with immediate effect. Tarak, will assume a Non-Executive Director role. Sheraz Ramzan, current Chief Commercial Officer, has been appointed as Chief Executive Officer with immediate effect. The Company also provides a trading update. Sales from 1 April 2023 to 29 February 2024 amounted to £74.4m, a £10.3m or a 12% reduction on the prior year period. Sareum Holdings* 11.25p £8.1m (SAR.L) The biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, announces its unaudited results for the six months ended 31 December 2023. Loss on after taxation was £2.5m and the Group held cash at 31 December 2023 of £0.4m. Post period end a UK R&D tax credit of £0.4m received in January 2024. The Company further announces a equity fundraise of up to £1.5m via the issue of new ordinary shares at 10 pence per new ordinary share, i.e. a discount of 31% to the closing price of 14.5 pence on 27 March 2024. As part of the equity raise, a retail offer is being made via Winterflood Retail Access Platform (WRAP) to raise up to £300k also at 10 pence per new share.
SAR ZNT MDZ JNEO CORO SNDA BOOM
Sareum Holdings has announced positive clinical progression for SDC-1801, its lead asset and novel TYK2/JAK1 inhibitor targeting the autoimmune space (with an initial focus on psoriasis). Preliminary data from the single ascending dose (SAD) study (part 1) and the food effects study (part 3), from its ongoing Phase Ia trial (in healthy volunteers) for SDC-1801, indicated a favourable safety profile and were supportive of once-daily oral dosing. The multiple ascending dose (MAD) arm continues to onboard patients and the Phase Ia trial’s full safety data are expected in H1 CY24. The swift progression of SDC-1801 through the clinic is encouraging, given that the study commenced in May 2023, and we see the initiation of a Phase Ib study (if Phase Ia data are supportive) in psoriasis patients in H224 (target completion end-CY24) as a major inflection point. Management expects to be funded to this milestone, supported by the £5m equity prepayment facility (£2.3m drawn down to date) and expected tax credits of £1.6m.
Sareum today announced the completion of the single ascending dose (SAD) part and the food effect study of its Phase 1a clinical trial for the lead programme SDC-1801. The Phase 1a trial is designed to investigate the safety, tolerability, pharmacokinetics and pharmacodynamics of an oral formulation of SDC-1801 in healthy subjects (trial ID ACTRN12623000416695p). These preliminary results indicate that SDC-1801 has the potential to achieve therapeutically effective dose levels with no serious adverse events. The results of the food safety study demonstrated no significant food effect on SDC-1801 blood levels, which will allow full flexibility in dose timing in future clinical studies. Phase 1 trial includes a single ascending dose study (Part 1), a multiple ascending dose study (Part 2) and a food effects study (Part 3). The multiple ascending dose study is ongoing and full safety data from the Phase 1a clinical trial are expected to be available during the first half of 2024. If the results are satisfactory and subject to financing, regulatory requirements, and recruitment preparations, the Company plans to initiate a Phase 1b clinical study. The goal is to recruit up to 24 psoriasis patients, with the study expected to be completed by the end of 2024. SDC-1801: SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. Sareum believes that dual TYK2 and JAK1 inhibition offers significant potential in autoimmune disease compared to agents that block just one of the two kinases. Hybridan’s forecasts: We expect the positive safety profile and pharmacokinetic data up to date to underpin Sareum’s plan for the Phase 1b part of the study and beyond and we look forward to the data from the multiple ascending dose part of this trial. Our model has factored into revenue of US$137,500 announced on 2 January 2024, i.e., Sareum’s share of the upfront payment from the Licensing Agreement with its co-development partner, the CRT Pioneer Fund (CPF) for development and commercialisation licence agreement for SRA737, a clinical-stage oral, selective Checkpoint kinase 1 (Chk1) inhibitor. We also assume a total of £4.3m drawdown of the RiverFort Facility during this financial year.
Sareum Holdings’ co-development partner CRT Pioneer Fund (CPF) has signed a new licensing agreement with an unnamed US-based private biopharma company for SRA737, its Phase II stage CHK1 inhibitor targeting the DDR network for the treatment of solid tumours. Deal terms include an upfront payment of $0.5m, additional fees of up to $1m in cash and 500,000 shares of the partner and potential milestone payments of up to $289m (comparable to the $290m allocated under its revised deal with Sierra Oncology in 2020, that has since been terminated). CPF will also be entitled to tiered high single-digit royalties on net sales. Sareum remains a passive partner in the programme with a 27.5% economic stake in SRA737, translating to $137.5k in upfront and a proportionate share of future payments. Given Sareum’s focus on progressing its lead clinical candidate SDC-1801 (Phase Ia trials ongoing), we expect any additional funds to be deployed in the asset’s development. We expect full safety data from the Phase Ia trial (expected H1 CY24) to be the next catalyst for the company.
Sareum’s co-development partner, the CRT Pioneer Fund (CPF), has entered into a development and commercialisation licence agreement for SRA737 (the Licensing Agreement) with a private biopharma company based in the U.S. Under the terms of the Licensing Agreement, an immediate upfront payment of US$0.5m is due to CPF. An additional fee of up to US$1.0m cash and 500,000 shares in the Licensee Company (Consideration Shares) may be payable upon the sooner of twelve months following the signing of the Licensing Agreement, or the event of the Licensee Company achieving certain commercial and material financing objectives. Additional payments to the aggregate amount of up to US$289m may become payable to CPF under the Licensing Agreement, subject to achievement of certain development, regulatory and commercial milestones. The Licensee Company will also pay tiered high single digit royalties to CPF on the net sales of any product successfully commercialised. Under the terms of Sareum's co-development agreements with CPF and Cancer Research Technology Ltd, Sareum is entitled to receive 27.5% of any income arising from this licensing of the SRA737 programme. Therefore, Sareum is entitled to receive US$137,500 from the upfront fee payable under the Licensing Agreement, as well as 27.5% of any future payments payable by the Licensee Company (including Consideration Shares). SRA737: SRA737 is a clinical-stage oral, selective Checkpoint kinase 1 (Chk1) inhibitor that targets cancer cell replication and DNA damage repair mechanisms. It was discovered and initially developed by the Institute of Cancer Research in collaboration with Sareum, with funding from Sareum and Cancer Research UK. SRA737 was licensed by CPF to Sierra in September 2016. Sierra progressed SRA737 through Phase 1/2 clinical development and, at the 2019 American Society of Clinical Oncology (ASCO) meeting, reported positive preliminary efficacy and safety data from two clinical trials evaluating SRA737 as a monotherapy and in combination with chemotherapy. Following the acquisition of Sierra by GSK in July 2022, primarily for Sierra's momelotinib myelofibrosis asset, the rights to SRA737 were returned to CPF in January 2023. Hybridan’s forecasts: We have incorporated revenue of US$137,500, i.e., Sareum’s share of the upfront payment for this financial year. The potential amount of up to US$289m payable to CPF under the Licensing Agreement is similar to the US$290m under the terms amended in November 2020 with Sierra. Any further monetisation of SAR737 will contribute to the financial support to Sareum’s development of its lead asset SDC-1801, a dual TYK2/JAK1 kinase inhibitor currently in Phase 1 clinical trial.
Sareum Holdings plc Sareum Holdings plc
Sareum provided an update on operational activities and pipeline progress ahead of its Annual General Meeting (AGM) today. The Company made good progress in 2023 with its lead programme, SDC-1801, with a Phase 1a clinical trial underway in Melbourne, Australia. SDC-1801: SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. Sareum believes that dual TYK2 and JAK1 inhibition offers significant potential in autoimmune disease compared to agents that block just one of the two kinases. On 9 November 2023, Sareum began dosing the first subjects in the food effects part of its Phase 1a clinical trial of its lead programme SDC-1801. The food effects study is designed to determine how the presence of food might affect the absorption and pharmacokinetic profile of SDC-1801. Full safety data from the Phase 1a trial are expected to be available in H1 2024 and, provided satisfactory results are obtained and subject to financing and regulatory and recruitment preparations, the Company plans to initiate a Phase 1b clinical study, aiming to recruit up to 24 psoriasis patients. This study is expected to be completed before the end of 2024. Equity Prepayment Facility from RiverFort: As announced on 3 August 2023, Sareum agreed the terms on an Equity Prepayment Facility (the Facility) of up to £5.0m with RiverFort Global Opportunities PCC Ltd. The Company received an initial deposit of £2.0m on 4 August 2023 and drew down an additional £0.3m in November 2023. The Company intends to use the Facility, if fully drawn, along with anticipated tax incentives, to complete the Phase 1a/b clinical development of SDC-1801, expected to be a primary catalyst for driving shareholder value, and for general working capital to Q4 2024. Hybridan’s forecasts: Our model has factored into £2m gross proceeds in August 2023 and the second deposit of £0.3m in November 2023 received by Sareum and assumes the third deposit of £0.3m in early February 2024 from the Riverfort Facility, as well as up to £1.4m as a Fourth potential Deposit and £0.5m as part of the Future Deposit during the financial year ended in June 2024. The availability of RiverFort Facility’s potential deposits (i.e., Fourth Deposit and Future Deposits) up to a total of £2.4m will depend on the trading conditions of Sareum shares held by RiverFort Global Opportunities PCC Ltd.
9th November 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU ("MIFID II Directive"); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority's Conduct of Business Sourcebook). This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority's Conduct of Business Sourcebook. Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world. Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP. Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: Barryroe Offshore Energy Plc (BEY.L) has left AIM What’s cooking in the IPO kitchen?** Tekcapital announced intention to spin off and IPO on 2 October: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-November. Stranger Holdings announced 02 October 2023, a Company formed for the purpose of acquiring a business, project or assets announces a Proposed Acquisition of up to a 70% interest in the Henkries Uranium Deposit and Prospecting Right in the Republic of South Africa. The Company will acquire this indirect ownership via the acquisition of two intermediary holding companies, namely Mayflower Energy Metals Limited and Neo Uranium Africa Proprietary Limited. The Acquisition constitutes a Reverse Takeover under the Listing Rules since, in substance it results in a fundamental change in the business of the issuer. Trading in the Existing Ordinary Shares continues to be suspended. It is anticipated that Re-Admission and trading in the Company's Enlarged Share Capital will occur on or around 7 November 2023. . Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** ADM Energy* 0.5p £1.8m (ADME.L) A natural resources investing company with an existing asset base in Nigeria and the United States announces the appointment of Lord Henry Bellingham as Chairman of the Board of Directors and the resignations of Oliver Andrews and Richard Carter. Lord Bellingham has served as a non-executive director of the Company since July 2020 and has enjoyed a distinguished Parliamentary career of almost 40 years and held a number of senior positions. The appointment of Lord Bellingham and the resignation of Mr. Andrews is with effect from 8 November 2023 and the resignation of Mr. Carter will be with effect from 1 December 2023 . Angle 11.25p £29.3m (AGL.L) A liquid biopsy company with circulating tumour cell (CTC) diagnostic solutions for use in research, drug development and clinical oncology, provides a trading update. The Company expects revenue for 2023 will be c.£2.2m, an increase of 120% over 2022 but below current market consensus of c.£3.0m. New sales secured in 2023 are expected to be c.£3.3m however revenue recognition for some of these sales will fall into the 2024 financial year. The cash position at 2023 year end is in line with consensus at c.£15m. The Company announce that they have taken the decision to streamline their services operations by closing the US clinical laboratory and focusing on a single UK-based centre of excellence. Aptamer Group 1.18p £5.5m (APTA.L) The developer of Optimer® binders to enable innovation in the life sciences industry, announces its full year results for the twelve months ended 30 June 2023 (Period). Revenue decreased by 55% to £1.8m (2022: £4.0m), as a result, adjusted EBITDA loss increased to £4.7m (2022: loss £1.7m). Operating loss for the Company stood at £8.1m (2022: loss £2.5m) and the Company holds cash at end of year of £234k (2022: £6.7m). The Company announced that contracts have been signed with a top five pharmaceutical company to develop multiple Optimer® binders to support pipeline development and early discovery targets and post year end, the Company has refinanced with £3.5m in two equity placings. European Metals Holdings 31.5p £65.3m (EMH.L) The lithium exploration and development company with assets in the Czech Republic announces the results of the Lithium Chemical Plant (LCP) pilot programme. The Pilot programme has confirmed industrial viability of the LCP process flowsheet, including clean battery grade lithium carbonate (>99.9%) produced with single-stage purification (bicarbonation) of crude lithium carbonate. The Pilot programme also confirmed at 99.7% purity, greater than battery grade (99.5%) in the carbonate precipitation step without any additional processing. The Company announces that the work to produce battery grade lithium hydroxide monohydrate is underway. Gelion 24.85p £26.9m (GELN.L) The Anglo-Australian battery innovator, has conditionally agreed to acquire the entire issued share capital of OXLiD for an aggregate consideration of up to approximately £4.2m. OXLiD is a UK based lithium-sulfur (LiS) battery technology developer. In addition, the Company announces a proposed equity Fundraising of up to approximately £4.5m (before expenses) by way of the issue of new New Shares, each at an Issue Price of 24 pence per New Share. The Issue Price represents a discount of approximately 3.0 per cent. to the closing mid-market price on 8 November 2023. Net proceeds of the Fundraising will be used alongside the Company's existing cash resources, to part fund the Acquisition, general capex and opex, expansion of the LiS technology team. Libertine Holdings 2.65p £3.7m (LIB.L) A developer of Linear Generator technology, provides an update on trading and operations for the six months ended 30 September 2023. The Company announce that the phase 1 engineering development with Hyliion is complete and the contract has entered 6-month Option Period for HEXAGEN™ platform technology IP licensing. Furthermore, the design, manufacture and first phase of combustion testing of Libertine's intelliGEN™ performance validation prototype for heavy-duty powertrain applications has been completed. As of 30 September 2023, the Group had cash reserves of £0.9m, which provide the Group, with the funds required to maintain current operations through to May 2024. PCI-PAL 41p £26.8m (PCIP.L) The provider of secure payment solutions for business communications, announces full year results for the year ended 30 June 2023. Revenue increased by 25% to £14.95m (FY22: £11.94m), as a result adjusted EBITDA loss decreased to £1.11m (FY22: loss £1.88m). Loss before tax increased 57% to £4.89m (FY22: loss £3.11m) and the Company has cash resources including maximum debt headroom of £4.17m. The Company announced continued strong momentum in the US market, with £2.5m new business ACV won in the year representing 61% of new business for the Group and is well positioned to deliver financial milestones this year. Poolbeg Pharma* 7p £35.0m (POLB.L) A clinical-stage biopharmaceutical company targeting diseases with a high unmet medical need, announces the appointment of key former executives of Amryt Pharma to its leadership team. Poolbeg's Chairman, Cathal Friel, co-founded both Poolbeg and Amryt Pharma. Amryt went on to list on Nasdaq and earlier this year, was sold to Chiesi Farmaceutica for $1.48bn. David Allmond will join Poolbeg Pharma as Chief Business Officer from 1 December 2023. David was previously Chief Business Officer at Amryt. John McEvoy will become SVP, Chief Legal Officer, at Poolbeg from 1 January 2024. John was Global General Counsel at Amryt from 2017 and continued in his role at Amryt following its sale. Laura Maher will join the Company as Vice President of Clinical Operations from 8 January 2024. Laura joined Amryt in 2018 and as Associate Director of Clinical Operations she led the clinical research programmes for multiple products in Amryt's pipeline. Poolbeg have made excellent progress since IPO and now plan to follow a similar strategic approach to Amryt which focused upon developing a number of very exciting clinical assets and the acquisition of approved and marketed drugs, which not only generate revenue but also fund the development of a robust pipeline of innovative products. Sareum Holdings* 57.5p £40.4m (SAR.L) A biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, announces the dosing of the first subjects in the food effects part of its Phase 1a clinical trial of lead programme SDC-1801. Dosing has started at a specialist clinical unit in Melbourne, Australia. The food effects study will provide key information about the absorption of SDC-1801 in fed or fasted healthy subjects, and forms an essential part of the safety data the company are compiling which will support the next stages of development. This is another important milestone in Sareum’s clinical development. The company continue to make progress in this trial and look forward to obtaining full safety data in the first half of 2024. TruFin 56.5p £59.8m (TRU.L) The holding company of an operating group comprising three technology businesses operating in niche markets announces that its subsidiary Oxygen, the early payments programme provider has entered into a binding agreement to acquire bidstats.uk. bidstats.uk offers users a suite of tools bundled into easily accessible freemium and subscription services that help businesses win public sector work. The Acquisition will be purchased for a total cash consideration of £0.5m (including a £0.1m earn out) from Axiom P1 Ltd. The acquisition complements Oxygen's existing Insights Services data products, providing valuable cross-selling opportunities. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs research@hybridan.com
SAR SAR POLB PCIP GELN AGL ADME EMH
Sareum today announced the dosing of the first subjects in the food effects part of its Phase 1a clinical trial of lead programme SDC-1801. The food effects study is designed to determine how the presence of food might affect the absorption and pharmacokinetic profile of SDC-1801. This will inform whether the drug should be taken with food or on an empty stomach, optimising its potential benefits whilst potentially minimising any possible side effects. This study runs in conjunction with the Single Ascending Dose (SAD) and the Multiple Ascending Dose (MAD) parts of the trial, which are concurrently dosing subjects as planned, ensuring a robust assessment of SDC-1801's pharmacological profile. Full safety data from the Phase 1a trial are expected to be available in H1 2024 and, provided satisfactory results are obtained, a Phase 1b clinical study is expected to commence as soon as possible thereafter in psoriasis patients. SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. Patent protection: On 2 November 2023, Sareum announced that the Japan Patent Office has issued a Notice of Allowance for a patent relating to SDC-1801. The newly approved Japanese patent, Special Application 2021-543577, safeguards SDC-1801 and its medical applications in treating inflammatory or immune disorders. Sareum expects that the patent in Japan will be granted in the near future, subject to certain formalities being completed. This follows the approval by the China National Intellectual Property Administration (CNIPA), which issued patent number CN113056456B for the same protections earlier this year. Patent applications in Europe (EP3864009), the US (US2021387981), and other territories are under review. Synergy anticipated between SDC-1801 and SDC-1802: SDC-1802 is also a TYK2/JAK1 inhibitor but currently under translational studies for cancer and cancer immunotherapy applications. We believe that the clinical experience of SDC-1801 will aid the development of SDC-1802 in the practical understanding of pharmacological profiles and mechanism of action of dual inhibition of TYK2 and JAK1. This insight may prove valuable in the selection of indications for SDC-1802. We note the patent granted by the United States Patent and Trademark Office (USPTO) in June 2023 covering the treatment of autoimmune diseases with SDC-1802 and several analogues and extending protection for this compound beyond immuno-oncology in the US.
Sareum Holdings recently announced its FY23 results and the key highlight, which was initiation of the clinical development of SDC-1801, its lead asset, in Australia. While the Phase Ia study is continuing according to plan, we view its timely progression as a material catalyst for the company. The FY23 operating loss increased by 57.6% y-o-y to £4.1m, driven by higher R&D costs associated with the start of the Phase Ia trial. Sareum ended FY23 with a cash balance of £1m, which was further supported by the receipt of £2m in August as part of a £5m equity prepayment facility. Management estimates that, along with expected tax credits of £1.6m, the prepayment facility should fund operations into Q4 CY24, providing adequate coverage for the Phase Ia/b study of SDC-1801.
A differentiated TYK2/JAK1 asset – The outlook statement references the scientific momentum in the TYK2/JAK1 class of inhibitors and we believe both SDC-1801 and SDC-1802 have a strong profile on this backdrop. We reiterate our 304p target price and Buy recommendation. Miles.Dixon@peelhunt.com
Sareum today announced the successful dosing of the first subjects in the multiple ascending dose part of its Phase 1a clinical trial for its lead programme SDC-1801. Dosing has started at a specialist clinical unit in Melbourne, Australia, and subjects will receive SDC-1801 orally once daily for 10 days. This follows approval by the safety review committee granted upon review of preliminary data generated from the three initial cohorts in the single ascending dose part of the study. The committee deemed this data as satisfactory to continue dose escalation in the single ascending dose group, as well as to commence the multiple ascending dose group of the study. Full safety data from the Phase 1a trial are expected to be available in H1 2024. Provided satisfactory results continue to be obtained, and funding is available under the RiverFort Equity Prepayment Facility signed on 3 August 2023 or in a different form. A Phase 1b clinical study is expected to commence as soon as possible thereafter in psoriasis patients, with a readout expected before the end of 2024, subject to recruitment and progress. Hybridan thoughts on competitive landscape: SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. Sareum believes that dual TYK2 and JAK1 inhibition offers significant potential in autoimmune disease compared to agents that block just one of the two kinases. Priovant Therapeutics’ brepocitinib is the only candidate we are aware of with a similar mechanism of action to SDC-1801. Despite good efficacy results of a Phase 1 trial of oral brepocitinib as a therapy against psoriasis and a Phase 2a trial of oral brepocitinib for patients with moderate-to-severe plaque psoriasis, Priovant did not further pursue psoriasis as an indication for brepocitinib and has been focusing on dermatomyositis (an orphan indication) and systemic lupus erythematosus (SLE) for this drug candidate. We believe that this is a commercial decision because of its launch of VTAMA® cream (an aryl hydrocarbon receptor agonist) for adult plaque psoriasis in June 2022. Whilst direct comparisons are difficult, the abovementioned context may provide a window of opportunity for Sareum to establish SDC-1801 as a best-in-class TYK2/JAK1 inhibitor based on an oral administration and targeting psoriasis, if Sareum's Phase 1b clinical trial yields good results next year. Oral administration is considered an advantage as it may potentially encourage better patient adherence.
Ahead of its full FY23 results, Sareum Holdings has received the first instalment (£2m) of its newly announced funding facility (£5m in total). Additionally, management shared an operational update on its lead asset, SDC-1801. The Phase Ia study is progressing as planned and the second part of the study (multiple ascending doses) is expected to start in Q323, subject to approval from the safety review committee. Sareum ended FY23 with a cash balance of £1m, further supported by the announced £5m (gross proceeds) equity prepayment facility, which will be split in five deposits at defined time intervals. Management believes that the prepayment facility, along with expected tax credits of £1.6m, should fund its operations into Q424, thus covering the Phase Ia/b study of SDC-1801.
Sareum today provided a business update ahead of its full year results for the year ended 30 June 2023. The Company also gave an update on the progress of its SDC-1801 Phase 1a clinical trial, financing and other operational activities. The loss for the year to 30 June 2023 is expected to be £3.3m after tax and the cash position was approximately £1.0m as at 30 June 2023, in line with our forecast. Equity Prepayment Facility of up to £5m: On 4 August 2023, the Company received an initial deposit of £2.0m, net of a 4.5% fee and other associated costs, from RiverFort Global Opportunities PCC Ltd (RiverFort). Two further deposits of £0.3m each are expected on the 3-month and 6-month anniversaries of this initial deposit. Sareum believes that this facility, if fully drawn, alongside anticipated tax credits to the amount of £1.6m, will allow it to complete the Phase 1a/b clinical development of its lead candidate SDC-1801 and to fund the general working capital to Q4 2024. SDC-1801 program: SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. Part 1 of the Phase 1a clinical trial is ongoing in Australia. Part 2 of the Phase 1a trial on the multiple ascending dose is expected to commence in Q3 2023, pending the review of the results by the safety review committee. Full safety data from the Phase 1a trial are expected to be available in H1 2024. Provided satisfactory results continue to be obtained, and funding is available under the RiverFort Equity Prepayment Facility or otherwise, a Phase 1b clinical study is expected to commence as soon as possible thereafter in psoriasis patients, with a readout expected before the end of 2024, subject to recruitment and progress. Hybridan forecast: We have now modelled out to June 2024 (FY24). We assume a burn rate of £5.2m for the year given the ongoing clinical trial. We also assume Sareum will be able to receive a £1.4m potential deposit on 3 February 2024, i.e., the 6-month anniversary of 4 August 2023 when the initial deposit was received, as well as able to negotiate future deposits and receive tax credits in order to complete the Phase 1b clinical trial. In the event that the Company is unable to draw down the majority of the additional £2.4m potentially available under the RiverFort Equity Prepayment Facility as and when expected, the Company will likely require alternative funding to complete the Phase 1b clinical development activities and to provide working capital in due course.
Sareum today announced that the first patent specifically relating to SDC-1801, its lead TYK2/JAK1 kinase inhibitor, has been granted in China. Further, a patent has been formally granted for SDC-1802 and several analogues, in the United States, extending the scope of protection beyond immuno-oncology. SDC-1801: SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. The China National Intellectual Property Administration (CNIPA) has officially issued patent number CN113056456B, safeguarding SDC-1801 and medical applications of it in treating inflammatory or immune disorders. This is the first patent granted to Sareum for SDC-1801 in any territory. Patent applications in Europe (EP3864009), the US (US2021387981) and other territories are still under review. The patent applications protecting SDC-1801 that have been submitted in other territories should further strengthen Sareum’s intellectual property around this asset in due course. A Phase 1a clinical trial on SDC-1801 is ongoing in Australia (see below). SDC-1802: SDC-1802 is being developed for cancer immunotherapy. Sareum continues to work on the translational studies needed to support development of SDC-1802, defining the optimal cancer application prior to completing toxicology and manufacturing studies. The United States Patent and Trademark Office (USPTO) has formally granted patent number US 11,673,870 B2. While Sareum has previously secured international patents providing comprehensive protection for the compound SDC-1802, this patent extends its scope beyond immuno-oncology in the US, specifically covering the treatment of autoimmune disorders with SDC-1802 and several analogues. Although oncology remains the primary focus of SDC-1802, the extension of patent protection scope in the U.S. gives Sareum the optionality to explore opportunities in other therapeutic areas.
On 6 June 2023, Sareum announced the successful dosing of the first subjects in a Phase 1a (single ascending dose) clinical trial for its lead programme SDC-1801. The dosing has started at a specialist clinical unit in Melbourne, Australia. The Phase 1a trial is designed to investigate the safety, tolerability, pharmacokinetics and pharmacodynamics of an oral formulation of SDC-1801 in healthy subjects. This will be a randomised, placebo-controlled trial with single and multiple ascending oral dose studies. Sareum expects to provide a further update on the trial once the initial safety and pharmacokinetic data in the single ascending dose study provides sufficient support for progression to Part 2 (multiple ascending dose) of the Phase 1a study, expected to be in H2 2023. Full safety data from this trial are expected to be available during the first half of 2024. SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. Sareum believes that dual TYK2 and JAK1 inhibition offers significant potential in autoimmune disease compared to agents that block just one of the two kinases. On the back of SDC-1801 clinical progress with the first dosing of patients, we think it is a good idea to look at FDA-approved Sotyktu (deucravacitinib, an oral selective allosteric TYK2 inhibitor), developed by Bristol Myers Squibb (BMS) and brepocitinib, an orthosteric TYK2/JAK1 inhibitor developed by Priovant Therapeutics. These two candidates are different both in terms of target (TYK2 only vs. TKY2/JAK1) and mechanism of action (allosteric inhibition on the regulatory site vs. orthosteric inhibition on the active site). As brepocitinib is the only candidate we are aware of with a similar mechanism of action to Sareum’s SDC-1801, we think the background information on how different JAK inhibitors work may help investors understand SDC-1801’s potential as a treatment for psoriasis when its clinical trial progresses and study data becomes available in due course. Both SDC-1801 and brepocitinib inhibit TYK2 and JAK1. Sareum believes that dual targeting of TYK2 and JAK1 differentiates SDC-1801 from first gen JAK inhibitors such as tofacitinib (JAK1/JAK3), baricitinib (JAK1/JAK2) and deucravacitinib (TYK2 only).
Sareum continues to make rapid progress with its clinical plans for SDC-1801 (lead TYK2/JAK1 kinase inhibitor) and has announced the dosing of first participants (Phase Ia study) just a month into receiving regulatory approval in Australia. The Phase Ia study is a randomised and placebo‐controlled trial evaluating the safety, tolerability, pharmacokinetics and pharmacodynamics of SDC-1801 in healthy adults, which is expected to be conducted in three parts. The data from part one, a single ascending dose across six cohorts of eight patients each, are anticipated in H2 CY23. Sareum intends to provide full safety data from the trial in H1 CY24 that, if favourable, will be followed by a Phase Ib study in patients with plaque psoriasis. We see the swift start of dosing as a sentiment booster for Sareum’s clinical development plan and expect Sareum might need to raise additional funds before end-CY23, given the anticipated rise in burn rates (c £0.5m/quarter historically) with the announced trial beginning.
Sareum yesterday announced the initiation of a Phase 1a clinical trial for its lead molecule SDC-1801. The trial has started with patient recruitment in progress at specialist clinical units located in Victoria, Australia. SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. The initial Phase 1a trial is designed to investigate the safety and pharmacokinetics of an oral formulation of SDC-1801 in ascending doses, administered to healthy subjects (trial ID ACTRN12623000416695p). Provided satisfactory safety data are obtained from this initial study, a Phase 1b clinical study is expected to commence in psoriasis patients in 2024. Why Australia? A thriving R&D ecosystem, efficient regulatory process and supportive R&D tax credits system are the reasons why Australia is one of the global centres for clinical trials. For Sareum’s clinical study, there are also benefits in patient recruitment given its ethnically diverse population and psoriasis treatment protocols that are similar with the UK. Commercial value and competitive landscape: The commercial value of the TYK2 inhibitor for psoriasis has been proven by the Food and Drug Administration’s approval of Bristol Myers Squibb’s Sotyktu™ (deucravacitinib) in September 2022 and then Takeda’s $4bn upfront payment in February 2023 for the acquisition of Nimbus’ Phase 2 TYK2 inhibitor NDI-034858. When it comes to dual inhibition of TYK2 and JAK1, Priovant Therapeutics’ brepocitinib is the only candidate we are aware of with a similar mechanism of action to Sareum’s SDC-1801. The lead indications Priovant is focusing on are dermatomyositis and systemic lupus erythematosus (SLE). A Phase 1 trial of brepocitinib as an oral therapy against psoriasis saw good results (https://pubmed.ncbi.nlm.nih.gov/29266308/). A phase 2a trial of oral brepocitinib shows it was generally effective and well tolerated in patients with moderate-to-severe plaque psoriasis (https://pubmed.ncbi.nlm.nih.gov/32311398/). Whilst direct comparisons are difficult, we think some lessons may be drawn from these other candidates. This may prove to be important for Sareum to establish a best-in-class TYK2/JAK1 inhibitor for SDC-1801, based on an oral administration and targeting psoriasis, if Sareum's Phase 1b clinical trial yields good results next year.
In an encouraging development, Sareum announced that its clinical trial application to commence Phase I studies for its lead asset, SDC-1801 (a TYK2/JAK1 inhibitor), has been approved by Australian authorities. Sareum had filed its application in March 2023 under the Clinical Trial Notification Scheme (CTN) after stalled discussions with the UK Medicines and Healthcare products Regulatory Agency (MHRA) for SDC-1801’s clinical trial authorisation (CTA) application based on the submitted data package. Following the Australian approval, Sareum intends to initiate the Phase Ia clinical trial (safety and dose-finding study in healthy volunteers) in Q223, which if successful will be followed by a Phase Ib study in 2024 in patients with plaque psoriasis. With burn rates likely to rise with trial commencement (c £0.5m/quarter currently), we expect Sareum will need to raise additional funds before end-CY23 (H123 cash balance of £2.9m).
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Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Golden Metal Resources Plc a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA intends to join AIM. It was established on 22 April 2021 as a company registered in England and Wales for the purpose of holding all of the Nevada mining assets of Power Metal Resources plc (AIM:POW). The Company holds four mining assets comprising the wholly owned Pilot Mountain, Garfield and Stonewall projects together with an earn-in option over the Golconda Summit project. Each of the projects consists of mining claims located entirely on land managed by the United States Bureau of Land Management. £1.98m total capital to be raised. Anticipated market capitalisation on Admission £7.16m. Expected Admission 10 May 2023. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** Anpario 242.5p £58.2m (ANP.L) The independent manufacturer of natural sustainable animal feed additives for health, nutrition and biosecurity, advises that Kate Allum will step down as Non-Executive Chairman and Chair of the Nomination Committee, leaving the Board at Anpario's AGM on 29 June 2023. Matthew Robinson will take over as Non-Executive Chairman from that date. Aptamer Group 13p £9.0m (APTA.L) The developer of Optimer® binders to enable innovation in the life sciences industry, announces a trading update for the year ending 30 June 2023. The Group expects full year revenues to be materially below FY2022. Revenue for the ten months ended 30 April 2023 was approximately £1.4m, as the existing pipeline of new business has taken longer than expected to convert, especially their licensing and royalty-based contracts. The Group cash balance was £0.7m and is making cost savings in order to extend the cash runway. CleanTech Lithium 40p £42.6m (CTL.L) An exploration and development company advancing sustainable lithium projects in Chile for the EV transition, announces its audited final results for the twelve months to 31 December 2022. The Company has raised £17.9m comprised of 1) IPO on London Stock Exchange's AIM market after raising £5.6m and 2) raised an additional £12.3m in October 2022 to fund work programme for 2023. The Company holds cash of £12.4m at year end. The Company demonstrated robust economics at Laguna Verde for a multi-decade commercial (20,000tpa) lithium operation with low operating cost of US$3,875 per tonne of lithium carbonate. Results included an NPV8 of US$1.83bn, IRR of 45.1% and a payback period of 1 year and 8 months. Corcel 0.38p £3.4m (CRCL.L) The industries exploration and development company, with interests in battery metals including nickel, cobalt, and rare earth elements, announces that it has agreed the sale of a 20% interest in its Mt. Weld Rare Earth Element project to Extraction Srl, for a cash consideration of AUD$1.0m payable by 31 May 2023. Following this transaction CRCL will have an 80% interest in the project pending the results of the first earn in period. The Company will now focus on its first transaction following its recent pivot to oil and gas. Eden Research 4.25p £16.2m (EDEN.L) The company focused on sustainable biopesticides and plastic-free formulation technology for use in the global crop protection, animal health and consumer products, announces its preliminary results for the year ended 31 December 2022. Revenue for the year increased 50% to £1.8m (2021: £1.2m ), with a loss before tax of £2.6m (2021: £3.4m). Adjusted EBITDA was £1.7m loss, a reduction of 15% (2021: £2.0m loss) and the Company held cash position of £2.0m (2021: £3.9m). The Company also received regulatory approval granted by the United States Environmental Protection Agency in September 2022 for all six petitions submitted. The team are focused on delivering strong sales growth in the future. EQTEC 0.185p £21.4m (EQT.L) A technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels and energy generation announces its audited results for the year ended 31 December 2022. Revenue decreased 13% to EUR8.0m (2021: EUR9.2m). EBITDA loss increased by 29% to EUR4.9m (2021: EUR3.8m), net loss including significant and non-recurring items was EUR10.5m (2021: EUR4.7m). This includes an investment impairment of EUR4.7m in relation to the North Fork project in California. The Company added contaminated plastics to their feedstock library after testing success, followed by a collaboration agreement with a French waste management company towards future plants. EQTEC continue to focus on core capabilities and development to support its design, engineering and technology integration. Goldplat 9p £15.1m (GDP.L) The mining services group, with international gold recovery operations located in South Africa and Ghana, servicing the African and South American Mining Industry, announces an operational update for the 3rd quarter ended 31 March 2023 (Q3). The two recovery operations achieved a combined operating profit for the quarter of £1.47m, a 36% decrease (Q3 2022 - £2.286m). The combined operating profit for the operating entities for 9 months decreased 20% to £4.84m (Q3 2022 - £6.045m). Despite the reduced operating performance in Q3, the Company still expects to meet current market expectations for the current financial year. Proton Motor Power Systems 11p £170.9m (PPS.L) The developer and producer of fuel cells and fuel cell electric hybrid systems with a zero-carbon footprint, announces that it has received an order from Shell Deutschland Oil GmbH, a subsidiary of the international energy group (Shell), for two HyShelter® 240 containerised hydrogen fuel cell hybrid systems. Proton Motor's technology is reflected in the HyShelter and the rest of the Hy-brand portfolio of solutions for infrastructural applications. They ensure a safe and clean energy supply where there is no or insufficient infrastructure. Sareum Holdings* 140p £95.3m (SAR.L) A biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, announces that its application to conduct Phase 1 clinical studies on SDC-1801 in Australia has been granted approval by the Human Research Ethics Committee (HREC). SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis, an autoimmune condition affecting the skin. With the approval, Sareum, working alongside specialist clinical units in Melbourne, Australia, expects to initiate a Phase 1a trial in the coming weeks. Provided satisfactory safety data are obtained from this initial study, a Phase 1b clinical study is expected to commence in psoriasis patients in 2024. TPXimpact Holdings 42.5p £49m (TPX.L) The technology-enabled services company focused on digital transformation, provides an update on its Q4 trading for the year ended 31 March 2023. The Board expects to report revenue of c.£83m with an adjusted EBITDA margin of approximately 3% and its net debt position below £18m. New business generation totalled £36m, and the momentum has continued into the new financial year with business wins exceeding £80m. The Board is raising its guidance on organic revenue growth to 15-20% for FY24 (from 10-15% previously) and is targeting an adjusted EBITDA margin of 5-6%. Trading for the fourth quarter of the year was at the higher end of previous guidance. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Chef: Emily Liu 0203 764 2344 emily.liu@hybridan.com Chef: Sacha Morris 0203 764 2345 sacha.morris@hybridan.com
SAR GDP EQT EDEN CRCL CTL ANP
Sareum today announces that its application to conduct Phase 1 clinical studies on SDC-1801 in Australia has been granted approval. Management is planning to initiate a Phase 1 trial in the coming weeks. SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis, an autoimmune condition affecting the skin. The Company’s application under the Clinical Trial Notification (CTN) scheme has been approved by the Human Research Ethics Committee (HREC) and acknowledged by Australia's medicines regulator, the Therapeutic Goods Administration (TGA), meaning the Phase 1 trial is now able to proceed. Clinical trial design: With this approval, Sareum, working alongside specialist clinical units in Melbourne, Australia, expects to initiate a Phase 1a trial as soon as possible to investigate the safety and pharmacokinetics of an oral formulation of SDC-1801 in ascending doses, administered to healthy subjects. Preparatory work for the trial is complete, including synthesis of the SDC-1801 drug substance under GMP (Good Manufacturing Practice) conditions and GMP-compliant manufacturing of the SDC-1801 capsules. Provided satisfactory safety data are obtained from this initial study, a Phase 1b clinical study is expected to commence in psoriasis patients in 2024. SDC-1801 and SDC-1802: SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for autoimmune diseases with an initial focus on psoriasis. SDC-1802 is a TYK2/JAK1 inhibitor being developed for cancer and cancer immunotherapy applications. Sareum is currently working on the translational studies needed to support the development of SDC-1802, defining the optimal cancer application prior to completing toxicology and manufacturing studies. Expertise and experience gained through SDC-1801 will support Sareum in optimising its planning and maintaining its good cost discipline. Hybridan’s view: Australia accounted for 4.2% share of global clinical trial activity in 2021 according to Clinical Trials Arena, higher than the UK’s 3.8% share. A thriving R&D ecosystem, diverse patient population, efficient regulatory process and supportive R&D tax credits system are the reasons why Australia is one of the global centres for clinical trials. For Sareum’s clinical study, there are also benefits in patient recruitment given its ethnically diverse population and psoriasis treatment protocols that are similar with the UK.
Following a tumultuous H123 marked by UK regulatory challenges for SDC-1801, Sareum has pivoted to Australia as a clinical trial destination. With the trial application filed and awaiting confirmation (expected in Q223), we anticipate the long-due Phase Ia trial to commence by mid-2023, followed by the crucial Phase Ib study in 2024, if initial safety data are positive. The operating loss during the period increased c 72% y o y to £1.75m, reflecting increased investment in the preparation for clinical studies. We expect this figure to rise with trial commencement. This will likely translate to a material increase in cash burn in the coming months (vs the H123 run rate of £1.3m) and we expect Sareum will need to raise additional funds before the end of CY23 (H123 cash balance of £2.9m). We see initiation of the Phase I study as a key catalyst for a potential re-rating.
Sareum today announces its unaudited results for the six months ended 31 December 2022. The Company’s operating expenses were £1.748m, up 72% year-on-year, reflecting the increased R&D associated with preparation for clinical trial, and this resulted in a loss before tax of £1.731m. As at 31 December 2022, the cash balance was £2.941m (vs. 30 June 2022: £4.261m). Application in Australia for clinical studies on SDC-1801: Post period end, Sareum submitted an application for Phase 1 clinical studies on SDC-1801 in Australia under the Clinical Trial Notification (CTN) scheme. A decision on approval by the HREC (Human Research Ethics Committee) and acceptance of the CTN by Australia’s medicines regulator, Therapeutic Goods Administration (TGA), is expected in Q2 2023. Sareum has designed a Phase 1a/b clinical trial. Subject to regulatory approval, Sareum plans to commence a Phase 1a trial as soon as possible to investigate the safety and tolerability of an oral formulation of SDC-1801 in ascending doses administered to healthy subjects. If the safety data proves satisfactory, Sareum intends to commence a Phase 1b clinical study in psoriasis patients in 2024. Preparatory work for the trial is complete, including synthesis of the SDC-1801 drug substance under GMP (Good Manufacturing Practice) conditions and GMP-compliant manufacturing of the SDC-1801 capsules. SDC-1801 and SDC-1802: SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for autoimmune diseases with an initial focus on psoriasis. SDC-1802 is a TYK2/JAK1 inhibitor being developed for cancer and cancer immunotherapy applications. Sareum is currently working on the translational studies needed to define the optimal cancer application. SDC-1801 experience will support optimal planning for SDC-1802. Why Australia? Australia accounted for 4.2% share of global clinical trial activity in 2021 according to Clinical Trials Arena, higher than the UK’s 3.8% share. A thriving research and development ecosystem, diverse patient population, efficient regulatory process and supportive R&D tax credits system are the reasons why Australia is one of the global centres for clinical trials. Hybridan’s forecast: We have changed our assumption for operating expenses in FY23 ended 30 June 2023 from £3.480m to £3.900m, to account for additional R&D and costs associated with the regulatory application in Australia. We also expect higher tax credits in FY23. As a result, we now model Sareum’s closing cash balance to be £1.087m. Other TYK2 inhibitors in clinical development The approval in September 2022 by the Food and Drug Administration (FDA) of Bristol Myers Squibb’s Sotyktu™ (deucravacitinib), a first-in-class, oral, selective TYK2 inhibitor for the treatment of adults with moderate-to-severe plaque psoriasis and the completion in February 2023 of Takeda’s $4bn upfront payment for the acquisition of Nimbus’ Phase 2 TYK2 inhibitor NDI-034858 for psoriasis are the two recent milestone events in the TYK2 space. SRA737: joint development with CRT Pioneer Fund LP (CPF) SRA737 is a clinical-stage oral, selective Checkpoint kinase 1 (Chk1) inhibitor that targets cancer cell replication and DNA damage repair mechanisms. It was discovered and initially developed by The Institute of Cancer Research in collaboration with Sareum and Cancer Research UK. Sareum is entitled to a 27.5% share of any commercialisation revenues from SRA737. SRA737 was licensed by CPF to Sierra in September 2016. Sierra progressed SRA737 through Phase 1/2 and reported positive preliminary efficacy and safety data from two clinical trials evaluating SRA737 as a monotherapy and in combination with chemotherapy. Sierra has not progressed the asset beyond the Phase 1/2 clinical trials in 2019. Following the acquisition of Sierra by GSK in July 2022, primarily for Sierra’s momelotinib myelofibrosis asset, the rights to SRA737 were returned to CPF in January 2023. Based on preclinical and early clinical data, Sareum believes that SRA737 has great potential in the treatment of cancer, particularly in combination settings. Clinical trial data published by Sierra shows that SRA737+LDG (low dose gemcitabine) specifically achieved a 25% response rate in anogenital cancer patients.
Early but different – we think that Sareum’s TYK2/JAK1 assets (SDC-1801 and SDC-1802) have a differentiated position in a recently reinvigorated JAKinhibs landscape. We note there are no marketed products possessing identical selectivity profiles (targeting TYK2 and JAK1). Miles.Dixon@peelhunt.com, Edward.Sham@peelhunt.com
Following the protracted stalemate with the UK Medicines and Healthcare products Regulatory Agency (MHRA) for its clinical trial authorisation (CTA) for SDC-1801, Sareum has now announced the filing of an application to commence Phase I studies for SDC-1801 in Australia under the Clinical Trial Notification scheme. The company intends to initiate the first part of the Phase Ia/b clinical trial (safety and dose-finding study in healthy volunteers) following regulatory approval, expected in Q223. This will be followed by the Phase Ib study in psoriasis patients in 2024, provided safety is established. As a reminder, in November 2022, SDC-1801’s CTA was turned down by the MHRA and Sareum has been awaiting further clarity prior to data resubmission. We note that the net cash balance at end-June 2022 stood at £4.3m and based on historical burn rates of £0.5m per quarter, we estimate Sareum to be able to commence the Phase Ia trial but it will require additional funds to advance the studies.
Sareum today announces that it has initiated an application to perform Phase 1 clinical studies on SDC-1801 in Australia under the Clinical Trial Notification (CTN) scheme. The documents required have been submitted to a Human Research Ethics Committee (HREC). A decision on approval by the HREC and acceptance of the CTN by Australia’s medicines regulator, the Therapeutic Goods Administration (TGA), is expected in Q2 2023. SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for autoimmune diseases with an initial focus on psoriasis. By working alongside consultants, contract research organisations (CROs), and clinical units, Sareum has designed a Phase 1a/b clinical trial with SDC-1801. Subject to regulatory approval, Sareum plans to commence a Phase 1a trial as soon as possible to investigate the safety and tolerability of an oral formulation of SDC-1801 in ascending doses administered to healthy subjects. If the safety data proves satisfactory, Sareum intends to commence a Phase 1b clinical study in psoriasis patients in 2024. Preclinical development activities required for the application have been successfully concluded. Synthesis of SDC-1801 drug substance under Good Manufacturing Practice (GMP) conditions has also been completed, with a surplus of material for the planned Phase 1 clinical trials. GMP-compliant manufacture of capsules of SDC-1801 for the Phase 1 trial, is also complete. Why Australia? Australia offers state-of-the-art research facilities and an efficient approval process. Moreover, the government provides significant tax incentives by allowing up to 43.5% of eligible R&D expenditure to be claimed back as cash. As such, Sareum has established a legal entity in Australia. Following the non-acceptance by the UK Medicines and Healthcare Products Regulatory Authority for Clinical Trial Authorisation (CTA) in November 2022, Sareum has not received further clarity as to how it could resubmit its CTA application. Hybridan’s view: We think the application to conduct clinical trials in Australia should accelerate the progress of SDC-1801. If management can benefit from rebates of R&D expenditure, it will free up financial resources for other programmes. We believe Sareum and its SRA737 co-development partner CRT Pioneer Fund will need to find a new licensee and/or structure a clinical trial program to maintain SRA737’s best-in-class status. In addition to SDC-1801, Sareum has two other development programs in progress. SDC-1802 (cancer immunotherapy) SDC-1802 is a TYK2/JAK1 inhibitor being developed for cancer and cancer immunotherapy applications. Sareum continues to work on the translational studies needed to define the optimal cancer application prior to completing toxicology and manufacturing studies. In April 2022, the Company was granted a new patent, protecting the SDC-1802 molecule and pharmaceutical preparations thereof as a therapeutic to treat T-cell acute lymphoblastic leukaemia (T-ALL – a cancer of a particular type of white blood cell called a T lymphocyte) and other cancers that are dependent on TYK2 kinase for survival. SRA737 (cancer) Sareum is entitled to a 27.5% share of any commercialisation revenues from SRA737. SRA737 is a clinical-stage oral, selective Checkpoint kinase 1 (Chk1) inhibitor that targets cancer cell replication and DNA damage repair mechanisms. It was discovered and initially developed by The Institute of Cancer Research in collaboration with Sareum and Cancer Research UK. SRA737 was licensed by CPF to Sierra in September 2016. Sierra progressed SRA737 through Phase 1/2 and reported positive preliminary efficacy and safety data from two clinical trials evaluating SRA737 as a monotherapy and in combination with chemotherapy. Sierra has not progressed the asset beyond the Phase 1/2 clinical trials in 2019. Following the acquisition of Sierra by GSK in July 2022, primarily for Sierra’s momelotinib myelofibrosis asset, the rights to SRA737 were returned to CPF in January 2023. Based on preclinical and early clinical data, Sareum believes that SRA737 has great potential in the treatment of cancer, particularly in combination settings.
Sareum today announces that Sierra Oncology (a subsidiary of GSK) has completed the return of the Clinical Study Reports and other associated documents and data related to SRA737 to Sareum’s co-development partner, the CRT Pioneer Fund LP (CPF). Sareum is entitled to a 27.5% share of any commercialisation revenues from SRA737. Sareum is evaluating next steps with CPF and will provide further updates as appropriate. SRA737 is a clinical-stage oral, selective Checkpoint kinase 1 (Chk1) inhibitor that targets cancer cell replication and DNA damage repair mechanisms. It was discovered and initially developed by The Institute of Cancer Research in collaboration with Sareum and Cancer Research UK. SRA737 was licensed by CPF to Sierra in September 2016. Sierra progressed SRA737 through Phase 1/2 and reported positive preliminary efficacy and safety data from two clinical trials evaluating SRA737 as a monotherapy and in combination with chemotherapy. Sierra has not progressed the asset beyond the Phase 1/2 clinical trials in 2019. Following the acquisition of Sierra by GSK in July 2022, primarily for Sierra’s momelotinib myelofibrosis asset, the rights to SRA737 were returned to CPF in January 2023. Hybridan’s view: In terms of competition, we note that there are two competing Chk1 candidates currently in Phase II: ACR-368 (formally known as Prexasertib) developed by Acrivon and ESP-001 developed by Esperas Pharma. Founded in 2012, CPF is 64% owned by Syncona Ltd, a FTSE 250 company focused on founding, building and funding healthcare companies. Given CPF’s objectives of bridging the investment gap to take potential cancer drugs from discovery through to Phase II, it looks likely that a new licensee for SRA737 is needed. Before a licensee is identified and the licensing deal is finalised , it may be worthwhile designing a Phase 2b trial that contributes to the identification of the indications or preselection biomarkers with the highest likelihood of approval. Clinical trial data published by Sierra shows that SRA737+LDG (low dose gemcitabine) specifically achieved a 25% response rate in anogenital cancer patients. Sierra estimated in 2019 that a Phase 2 trial in anogenital cancer would cost approximately $10m. We believe that a well-designed and executed Phase 2b trial will help SRA737 to maintain its best-in-class status. Other Chk1 candidates Chk1 is a key modulator of the cell division cycle and the DNA damage response (DDR) signalling. Inhibition of Chk1, in conjunction with genetic alteration and/or a DNA damaging agent, results in a mitotic catastrophe (cell death due to defective checkpoints) and apoptosis (programmed death) of cancer cells. Some Chk1 candidates are designed to have secondary specificity to Chk2. No Chk1/2 inhibitors have been approved by the FDA yet. ACR-368 (previously known as Prexasertib) Initially developed under a collaboration between Array Biopharma and Icos starting in 2001, Prexasertib became Lilly’s asset after its acquisition of Icos in 2007. Lilly abandoned the Prexasertib program in 2019. Acrivon (NASDAQ: ACRV) obtained rights to the drug in 2021. According to Acrivon’s IPO prospectus in October 2022, the overall response rate of Lilly’s trials without a predictive biomarker was 29% at the single centre Phase 2 ovarian cancer trial on the intent to treat (ITT) population, and approximately 12% across the platinum-resistant ovarian cancer cohorts in the large Phase 2 trial that Lilly undertook. Acrivon believes that with its proteomics platform, it can better identify patients who will respond to ACR-368. ESP-001 (formerly LY2880070) This compound was originally discovered by Eli Lilly, with the potential to treat certain types of cancers including high-grade serous ovarian cancer (HGSOC). Esperas Pharma, founded in Montréal, Québec in 2015 by a US$16.5m financing led by TVM Life Science Ventures, acquired the worldwide rights to develop and commercialise this candidate in 2016. In a Phase 1 study in HGSOC, ESP-01 combined with low-dose gemcitabine showed a significant rate of disease control (59.3%). The new trial will be on a genetically selected sub-population of HGSOC. Enrolment is expected to start in March 2023. PEP-07 (previously known as SOL-578) SOL-578 was developed by Sentinel Oncology in Cambridge, UK. After the initial collaboration with PharmaEngine (a listed company in Taiwan) in November 2020 for the funding of IND enabling studies, a global exclusive licensing contract was signed in September 2022 for a total sum of $140.5m from development, regulatory and sales milestones in addition to royalties from net product sales of SOL578. The candidate is now renamed as PEP-07 and currently developed for haematological cancers. A poster was released on 25 January 2023. (https://www.pharmaengine.com/tw/newsView_585).
Sareum has announced that the UK Medicines and Healthcare products Regulatory Agency (MHRA) has turned down the clinical trial authorisation (CTA) for SDC-1801 based on the submitted data package. While Sareum awaits the formal letter of non-acceptance, initial insights suggest that the MHRA will seek a review by the UK Good Laboratory Practice Monitoring Authority or request additional information to support the submitted non-clinical data. As a reminder, Sareum filed the CTA for SDC-1801 in July 2022 with the intention of commencing the Phase Ia trial in Q4 CY22. While the company is seeking further clarification from the MHRA on the requirements for resubmission, we now anticipate a delay in launching clinical activity.
Sareum Holdings plc yesterday announced that the UK Medicines and Healthcare Products Regulatory Agency (MHRA) has given notice that it has not been able to approve the Clinical Trial Authorisation (CTA) to evaluate the safety and tolerability of Sareum’s lead programme SDC-1801. We have published research on this which is attached and a snapshot of the research is below. The MHRA has indicated that it seeks a further review of the non-clinical data submitted as part of the application to approve the clinical study. Sareum is seeking additional clarification from the MHRA and other advisers and will provide an update on next steps for resubmission as soon as possible. Due to uncertainties around the timeline for resubmission, Sareum therefore no longer expects the clinical trial to commence before the end of 2022. SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases, with an initial focus on psoriasis. TYK2/JAK1 inhibition has demonstrated benefits in maintaining a healthy immune system and has strong clinical validation in psoriasis and psoriatic arthritis. Psoriasis affects more than 60 million adults worldwide and Sareum estimates the market size for potential treatments to be worth more than US$30bn. Value milestone: We expect the resubmission of the (CTA) to evaluate the safety and tolerability of SDC-1801 will be the next milestone. Further clarity from Sareum is required to assess the likely timeframe and any costs associated with the resubmission. We hope that the progression of SDC-1801 into the clinical stage will be the next major positive catalyst for Sareum’s share price, against the backdrop of increasing recognition in the potential for the TYK2/JAK1 class evidenced in September 2022 by the FDA approval of Bristol Myers Squibb’s Sotyktu, the first approved TYK2 therapeutic. The licensing deals for autoimmune skin diseases including psoriasis during the past two years (shown below) provide an indication of the likely upfront fees and total contract sizes for candidates from preclinical stage to Phase III. Recent licensing deals in autoimmune diseases including psoriasis The most recent relevant licensing deal is between Almirall and Pharmaceutical Group Limited (2096.HK) announced in September 2022. The drug candidate SIM0278 covers a range of autoimmune indications and the licensee Almirall is a is a global biopharmaceutical company focused on skin health. In addition to SDC-1801, Sareum has two other development programs in progress. SDC-1802 (cancer immunotherapy) SDC-1802 is a TYK2/JAK1 inhibitor being developed for cancer and cancer immunotherapy applications. Sareum continues to work on the translational studies needed to define the optimal cancer application prior to completing toxicology and manufacturing studies. In April 2022, the Company was granted a new patent, protecting the SDC-1802 molecule and pharmaceutical preparations thereof as a therapeutic to treat T-cell acute lymphoblastic leukaemia (T-ALL – a cancer of a particular type of white blood cell called a T lymphocyte) and other cancers that are dependent on TYK2 kinase for survival. SRA737 (cancer) SRA737 is a clinical-stage oral, selective Chk1 inhibitor that targets cancer cell replication and DNA damage repair mechanisms. The asset was originally developed by Sareum and several Cancer Research UK-related organisations, including Cancer Research Technology Pioneer Fund (CPF) with whom the Company entered a co-development agreement in 2013. Under the terms of the agreement, Sareum is entitled to a 27.5% share of any commercialisation revenues. As announced on 12 October 2022, Sareum has been informed by Sierra Oncology that it intends to terminate the SRA737 licence agreement and return the rights for SRA737 to CPF. Sareum will discuss with CPF the potential options for future development opportunities for SRA737 and evaluate its next steps accordingly. The SRA737 licence agreement has a 90-day notice period for termination, therefore Sareum expects the rights to the programme to be returned to CPF during January 2023. SRA737 was licensed by CPF to Sierra Oncology in September 2016. Sierra Oncology progressed SRA737 through Phase 1/2 clinical development and, at the 2019 ASCO Annual meeting, reported positive preliminary efficacy and safety data from two clinical trials evaluating SRA737 as a monotherapy and in combination with chemotherapy. Sierra has not progressed the asset beyond the Phase 1/2 clinical trial. Based on preclinical and early clinical data, Sareum believes that SRA737 has great potential in the treatment of cancer, particularly in combination settings.
Sareum’s FY22 results (to end-June 2022) provided both a financial and operational update on the company’s progress with its developmental pipeline. Encouraging progress has been made with SDC-1801 and the company has filed an exploratory clinical trial application (CTA) to initiate a UK-based Phase Ia/b study. Subject to regulatory approval, management intends for Phase Ia of the trial to commence in Q4 of CY22. Additionally, the company continues to progress its preclinical pipeline through the development of its immunoncology asset SDC-1802 as well as explore strategic options for its clinical oncology asset SRA737. With a gross cash balance of £4.3m at the end of FY22, Sareum expects to have sufficient funding to take SDC-1801 through the Phase Ia portion of the study. We see regulatory approval to initiate the SDC-1801 Phase Ia trial as the next major catalyst for Sareum.
Sareum Holdings plc today announced its audited results for the year ended 30 June 2022. The operating loss of £2.6m and the cash balance of £4.3m were in line with our forecasts. We maintain our June 23 forecasts for the P&L but have updated the balance sheet and cash flow numbers, positively, mainly to reflect the better cash balance at 30 June 2022. SDC-1801 (autoimmune disease): SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic with an initial focus on psoriasis. Sareum believes that SDC-1801 has significant potential for superior efficacy in autoimmune disease compared to oral therapies currently available and in development. A Clinical Trial Authorisation (CTA) application was submitted in July to the UK Medicines and Healthcare products Regulatory Agency (MHRA) for a Phase 1a/b study. Subject to the regulatory approval, Sareum aims to begin clinical trials in healthy volunteers in 4Q22. Subject to additional funding, a Phase 1b study on psoriasis patients is planned for 2023. SDC-1802 (cancer immunotherapy): SDC-1802 is a TYK2/JAK1 inhibitor. Sareum continues to work on the translational studies in order to define the optimal cancer application prior to toxicology and manufacturing studies. SRA737 (cancer): SRA737 is a clinical-stage oral, selective Chk1 inhibitor that targets cancer cell replication and DNA damage repair mechanisms. The licensee Sierra Oncology progressed SRA737 through Phase 1/2 clinical development in 2019 with positive results and is expected to return the rights to Cancer Research Technology Pioneer Fund (CPF) in January 2023. Sareum will discuss the potential options for SRA737 with CPF. Sareum is entitled to a 27.5% share of any commercialisation revenues for this co-development program with CPF. Value creation and catalysts to share price: With a 95% free float, Sareum’s share price reacts well to value creation events, such as positive study results and patents (shown in the graph below). We think the progression of SDC-1801 into the clinical stage and quality human data are likely to be the next major catalysts, against the backdrop of increasing recognition in the potential for the TYK2/JAK1 class evidenced in September 2022 by the FDA approval of Bristol Myers Squibb’s Sotyktu, the first approved TYK2 therapeutic. Sareum’s Share Price Catalysts The news flows on SDC-1801’s potential as a therapy for COVID-19 and study results pushed Sareum’s share price from the low point of £0.85 in April 2021 to the high point of £3.775 on 5 July 2021, days after the study results announcement on 1 July 2021. We also observe the positive momentum immediately after Non-Executive Chairman Dr. Stephen Parker’s purchase of 277,777 shares on 23 November 2021, as well as the weaker share prices post the consolidation of the share combination effective on 1 March 2022, and in line with the rest of the market which was on a downward trajectory after war broke out in Ukraine, and with rising inflationary pressures, interest rates and general economic, political and global uncertainty. SDC-1801’s positive toxicology report and the FDA’s approval of Bristol Myers Squibb’s (BMS) Sotyktu, the first approved TYK2 therapeutic, created a positive momentum. Sareum’s share price dropped 32% from £1.975 on 11 October 2022 to £1.35 on 17 October 2022, in response to the announcement on 12 October 2022 regarding the return of SRA737. We believe this fall in the share price is overdone as Sareum and its co-development partner CPF now has what was once its lead programme under its control, a programme which had been “stuck” and not moved forward since 2019. The graph below shows that Sareum’s share price reacts very well to news on its in-house development programmes, patents and intellectual properties and trial study results. Corporate Strategy Sareum is a small molecule drug development company focused on advancing inhibitors of the JAK kinase family into clinical development for autoimmune disease and cancer. It is led by a highly experienced team with expertise in kinase inhibition and decades of experience in R&D and public company management. The pipeline is focused on TYK2/JAK1 inhibitors, which are involved in signalling pathways that are deregulated in multiple autoimmune diseases. Inhibition of TYK2 and JAK1 has the potential to yield a superior efficacy compared with agents that block just one of these two kinases and with a superior safety profile than “first generation” JAK family inhibitors that also modulate JAK2 and JAK3. Sareum seeks to monetise its discovery and development programmes, from late preclinical to early clinical stages via licensing or partnering. The Company maintains a lean cost base and uses trusted third-party providers to maximise the return on its investment. SDC-1801 (autoimmune disease) SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases, with an initial focus on psoriasis. Psoriasis is an autoimmune dermatological condition affecting more than 60 million adults worldwide, with a market size for potential treatments worth more than US$30bn. Sareum believes that TYK2/JAK1 inhibition offers the potential for increased efficacy in psoriasis, compared with existing approved oral therapies. Sareum, working alongside a specialist contract drug development organisation, has designed a Phase 1a/b clinical trial with SDC-1801 in healthy subjects and psoriasis patients. Subject to regulatory approval from the MHRA, the Phase 1a trial is planned to commence in Q422 and will investigate the safety and tolerability of an oral formulation of SDC-1801 in ascending doses administered to healthy subjects. In addition, the trial will evaluate the effect of SDC-1801 on certain biomarkers of autoimmune disease that could be predictive of efficacy when tested in patients. The Phase 1a part of the trial is expected to provide safety and dosing information applicable for any future trials in patients with other autoimmune diseases and the acute respiratory symptoms of viral infections, including COVID-19, should the Company decide to progress such trials. Provided satisfactory safety data is obtained from this initial study, and subject to additional funding, a Phase 1b clinical study will commence in psoriasis patients in 2023. The Clinical Research Organisation conducting and managing the studies has extensive experience in conducting trials in inflammatory diseases and up to 120 subjects will be recruited at a site in Manchester, UK. Synthesis of SDC-1801 drug substance under Good Manufacturing Practice (GMP) conditions has been completed successfully, with a surplus of material for the planned Phase 1 clinical trials. GMP-compliant manufacture of capsules of SDC-1801, intended for use in the Phase 1 trial, is also complete, and the capsules are undergoing rigorous quality control checks before delivery to the clinical unit. SDC-1802 (cancer immunotherapy) SDC-1802 is a TYK2/JAK1 inhibitor being developed for cancer and cancer immunotherapy applications. Sareum continues to work on the translational studies needed to define the optimal cancer application prior to completing toxicology and manufacturing studies. In April 2022, the Company was granted a new patent, protecting the SDC-1802 molecule and pharmaceutical preparations thereof as a therapeutic to treat T-cell acute lymphoblastic leukaemia (T-ALL – a cancer of a particular type of white blood cell called a T lymphocyte) and other cancers that are dependent on TYK2 kinase for survival. SRA737 (cancer) SRA737 is a clinical-stage oral, selective Chk1 inhibitor that targets cancer cell replication and DNA damage repair mechanisms. The asset was originally developed by Sareum and several Cancer Research UK-related organisations, including Cancer Research Technology Pioneer Fund (CPF) with whom the Company entered a co-development agreement in 2013. Under the terms of the agreement, Sareum is entitled to a 27.5% share of any commercialisation revenues. As announced on 12 October 2022, Sareum has been informed by Sierra Oncology that it intends to terminate the SRA737 licence agreement and return the rights for SRA737 to CPF. Sareum will discuss with CPF the potential options for future development opportunities for SRA737 and evaluate its next steps accordingly. The SRA737 licence agreement has a 90-day notice period for termination, therefore Sareum expects the rights to the programme to be returned to CPF during January 2023. SRA737 was licensed by CPF to Sierra Oncology in September 2016. Sierra Oncology progressed SRA737 through Phase 1/2 clinical development and, at the 2019 ASCO Annual meeting, reported positive preliminary efficacy and safety data from two clinical trials evaluating SRA737 as a monotherapy and in combination with chemotherapy. Sierra has not progressed the asset beyond the Phase 1/2 clinical trial. Based on preclinical and early clinical data, Sareum believes that SRA737 has great potential in the treatment of cancer, particularly in combination settings. (Please refer to our note published on 12 October 2020 for the context of Sierra’s de-prioritisation of SRA737 since 2019.)
FY22 results – in line and clinical trials set to begin in CY22 The results include a broader update on the operational activities and the pipeline progress. The financials are in line with our expectations for YE and the all-important cash position (£4.3m) is sufficient to allow the company to execute on its immediate plans (especially so given the judicious use of capital with net operating costs at just £2.1m). We believe there has been a sea-change for 2nd generation JAKinhibs and that the selectivity profile of SAR’s assets should be of interest to Pharma. Miles.Dixon@peelhunt.com
Sareum has announced that Sierra Oncology has decided to return the rights to the out-licensed CHK1 asset SRA737 (held in partnership with the CRT Pioneer Fund, CPF), following GlaxoSmithKline’s (GSK) $1.9bn acquisition of Sierra in July 2022. SRA737 was in-licensed by Sierra in 2016 and Sareum holds a 27.5% economic stake in the proceeds. Development work on SRA737 had been put on hold (due to funding constraints), but Sierra had recently indicated plans for renewed development as a potential combination therapy. This was before Sierra was picked up by GSK for its lead asset momelotinib (targeting myelofibrosis, a haematological cancer of the bone marrow). We see this latest development as a mild setback for Sareum given that GSK’s support could have accelerated development activity on the drug, triggering a $0.55m payment to Sareum from first patient dosing in a new clinical trial. However, it does provide Sareum and partner CPF with an opportunity to actively assess future development plans for SRA737, leveraging the positive clinical data.
On 9 September 2022 the US FDA approved Bristol Myers Squibb’s first-in-class tyrosine kinase 2 (TYK2) inhibitor Sotyktu (deucravacitinib) for the treatment of moderate-to-severe plaque psoriasis in adults, making it the first selective TYK2 inhibitor to be approved for any indication. We expect this news to have a positive read-across for Sareum Holdings’ lead asset, SDC-1801, a dual TYK2/JAK 1 inhibitor. As a reminder, Sareum recently announced the filing of a clinical trial authorisation application for SDC-1801 with the UK Medicines and Healthcare products Regulatory Agency. The Phase Ia (in healthy subjects) is planned to start in Q4 CY22, and a Phase Ib (in psoriasis patients) is planned to start in CY23 subject to regulatory approval. The approval of Sotyktu was widely expected and validates the potential of this new asset class, in our opinion. Sareum asserts that SDC-1801’s dual targeting could potentially accord superior efficacy, which if proved could translate to a sizeable market opportunity for Sareum.
Sareum Holdings plc notes the announcement from Bristol Myers Squibb (BMS) that the US Food and Drug Administration (FDA) has approved Sotyktu™(deucravacitinib), a first-in-class, oral, selective, allosteric tyrosine kinase 2 (TYK2) inhibitor for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy. This is the first approval by the FDA of a medicine based on TYK2, a member of the JAK cell signalling family. This news is very important clinical validation which supports Sareum’s confidence in its broader portfolio of TYK2/JAK1 inhibitors focused on autoimmune disease. Sareum believes the TYK2/JAK1 signalling pathway which it is pursuing offers potential for superior efficacy compared with agents, such as deucravacitinib, which block just one of the two kinases. The Sotyktu approval is based on a pivotal Phase 3 study of deucravacitinib which demonstrated superior efficacy against placebo and standard of care. It is also encouraging to note that deucravacitinib was well tolerated in the Phase 3 study. Unlike some other medicines in the JAK inhibitor class, the FDA is not requiring boxed warnings for deucravacitinib around the heightened risk of serious heart-related events. "We're encouraged that the FDA has approved Sotyktu (deucravacitinib)," said Tim Mitchell, CEO of Sareum. "We believe this validates the potential of this new therapeutic class and supports our own growing confidence around our lead programme and our broader portfolio of TYK2/JAK1 inhibitors.” Sareum has submitted a Clinical Trial Authorisation (CTA) to the UK's Medicines and Healthcare Products Regulatory Agency to initiate a clinical trial of SDC-1801, with an initial focus on psoriasis, and hopes to begin dosing patients for Phase 1b in 2023, subject to regulatory approvals. Phase 1a in healthy volunteers is still scheduled (regulators permitting) to start in 4Q 2022. Sareum will update on the regulatory progress of SDC-1801 in due course. Hybridan has summarised a list of other TYK2 inhibitors in clinical development in the table on the next page.
Sareum has announced that it has filed a clinical trial authorisation (CTA) application for its lead asset, SDC-1801, with the UK Medicines and Healthcare products Regulatory Agency. The announcement marks a key milestone for the company and paves the way for the clinical transition of its flagship TYK2/JAK1 inhibitor targeting the autoimmune space. Subject to regulatory approval, the Phase Ia trial is expected to start in Q4 CY22 and will evaluate the safety and tolerability of SDC-1801 in healthy subjects. If successful, Sareum will initiate a Phase Ib study in psoriasis (PS) patients in 2023. The £4.3m cash balance at the end of June should be sufficient to take SDC-1801 through Phase Ia clinical trials, with the company continuing to assess funding options to further clinical development.
Sareum Holdings plc announced this morning that it has submitted an application for Clinical Trial Authorisation (CTA) to the UK Medicines and Healthcare Products Regulatory Agency (MHRA) for the development of SDC-1801. We have published research on this which is attached and a snapshot of the research is below. Sareum Holdings plc announced this morning that it has submitted an application for Clinical Trial Authorisation (CTA) to the UK Medicines and Healthcare Products Regulatory Agency (MHRA) for the development of SDC-1801 as a potential new therapeutic for a range of autoimmune diseases with a focus on psoriasis. Subject to regulatory approval from MHRA, the Phase 1a trial is planned to commence in Q4 2022 and will investigate the safety and tolerability of an oral formulation of SDC-1801 in ascending doses administered to healthy subjects. In addition, the trial will evaluate the effect of SDC-1801 on certain biomarkers of autoimmune disease that could be predictive of efficacy when tested in patients. Phase 1a trial is expected to provide safety and dosing information applicable for any future trials in patients with other autoimmune diseases and the acute respiratory symptoms of viral infections, including COVID-19. Provided satisfactory safety data is obtained from this initial study, a Phase 1b clinical study will commence in psoriasis patients in 2023. The contract research organisation (CRO) conducting and managing the study has extensive experience in conducting trials in inflammatory diseases and will recruit up to 120 subjects at a site in Manchester, UK. Management indicates that psoriasis is an autoimmune dermatological condition affecting more than 60 million adults worldwide, with a market size for potential treatments worth more than US$30bn. Sareum believes that TYK2/JAK1 inhibition offers potential for increased efficacy in psoriasis, compared with existing approved therapies. Cash position. Sareum has a cash position of more than £4m as of June 2022. We have revised our prior forecast for the Company to reflect a lower cash burn for the year ended in June 2022 than we previously anticipated. However, we maintain our forecast of £3.5m operating expenses for the year ended in June 2023, given all the trial activities in planning. We now model the Company will have £1.1m in cash as of June 2023. (Our note published on 14 April 2022 forecasted the Company would have £3.5m in cash as of June 2022E and £0.6m as of June 2023E.) There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP.
Small molecules are still a firm Pharma favourite After the Biotech rout of 1H22, investors should start looking for where Pharma will see mispriced assets: ideally those with minimal near-term cash requirement for clinical development, yet with strong therapeutic applications. Sareum has what we think is an overlooked asset class in the UK investment landscape: small molecules. Sareum’s lean business model looks to licence its promising assets to Pharma after early-stage clinical development (mitigating pipeline risk), and its ‘kinase inhibitor’ assets have potential applications across cancer and autoimmune disease. We see fair value of 304p (c.60% upside). Buy. Miles.Dixon@peelhunt.com 54-page note
Sareum Holdings, the specialist drug development company, noted yesterday that Sierra Oncology, Inc, the licence holder for SRA737 (a novel Chk1 inhibitor), had agreed to be acquired by GlaxoSmithKline for US$1.9bn in cash. The transaction is expected to close in the third quarter of 2022 or before. GSK has noted that the key driver of the acquisition was momelotinib, a drug Sierra is developing for the treatment of myelofibrosis, which reported positive topline results in a Phase III study in January 2022. Whilst SRA737 is at an earlier stage clinically, we believe it has considerable appeal for GSK to take further. In 2019, Sierra presented preliminary efficacy data from Phase 1/2 clinical trials with SRA737. This included a 30% response rate for SRA737 + low dose gemcitabine (LDG) in anogenital cancer and anti-cancer activity demonstrated across multiple indications and genetic profiles. SRA737 was discovered and initially developed by scientists at The Institute of Cancer Research in collaboration with Sareum, and with funding from Sareum and Cancer Research UK. SRA737 was licensed to Sierra in September 2016. During the second half of 2021 and early 2022, Sierra noted it is finalising the design of several potential clinical trials to advance its pipeline candidates, including SRA737, which it said could start in 2022. These trials would investigate SRA737 in combination with other agents in haematologic and solid tumour indications. Under an amended US$299m licensing deal on SRA737 between Sierra and CRT Pioneer Fund LP, Sareum is eligible to receive a 27.5% share of any future milestone payments as well as royalties on any future sales. The dosing of the first patient with SRA737 in any new clinical trial would result in a US$2.0m payment from Sierra, with 27.5% of this due to Sareum. Sareum also reported earlier this week that further to its announcement on 15 December 2021, the European Patent Office has now issued a formal notification of grant for a patent in respect of an invention associated with Sareum's proprietary SDC-1802 TYK2/JAK1 inhibitor programme. The patent will come into effect on 4 May 2022. The patent (EPO Patent no. EP3528806) will protect the SDC-1802 molecule and pharmaceutical preparations thereof as a therapeutic to treat T-cell acute lymphoblastic leukaemia (T-ALL - a cancer of a particular type of white blood cell called a T lymphocyte) and other cancers that are dependent on TYK2 kinase for survival. For analyst certification and other important disclosures, refer to the Disclosure Section The strong intellectual protection being built around Sareum’s TYK2/JAK1 inhibitor programmes is an essential component when it comes to negotiating attractive licensing deals. We remind you that Sareum is planning to submit a clinical trial application (CTA) in mid-2022 for SDC-1802’s stablemate, SDC-1801 for autoimmune conditions and the acute respiratory symptoms of Covid-19. Whilst we will have to await further updates from GSK for a firm plan for SRA737, the bid shows that big pharma will pay top dollar for good assets as they scramble to replenish their pipelines. As each hurdle in the clinical and regulatory process is cleared, Sareum’s bargaining power increases. The next major hurdle for Sareum’s proprietary programmes is the CTA of SDC-1801. Shares in Sareum have performed well of late, up 98% in the last month, equating to a total market value of £160m. As a reference point the US$1.9bn bid for Sierra was a 47% premium to Sierra’s value on NASDAQ yesterday and Sierra’s share have already run up 73% on a month view. It is worth noting that according to Reuters, this compares to consensus peak sales expectations of just $630m for Sierra’s lead experimental drug, momelotinib. Meanwhile BMS is predicting US$4bn of sales for its TYK2 inhibitor deucravacitinib in 2029. BMS is hoping for its first FDA approval for deucravacitinib in 2029. Sareum’s TYK2/JAK1 inhibitors are sufficiently differentiated in the space that they have the potential to become class leaders.
GlaxoSmithKline (GSK) has announced the acquisition of Sierra Oncology, Sareum’s licensing partner for its CHK1 asset SRA737 (held in partnership with CRT Pioneer Fund) targeting solid tumours. The deal values Sierra at $55/share (a 39% premium to the closing price on 12 April) for a total consideration of $1.9bn. As a reminder, SRA737 was in-licensed by Sierra in 2016 and Sareum holds a 27.5% stake in the proceeds of the licence agreement. Development work on SRA737 had been deprioritised (due to funding constraints) until recently, when Sierra indicated a revival in development work on a potential combination therapy. Sareum’s share price has responded favourably following news on the acquisition, suggesting that the market is expecting progress on the asset to accelerate given the significantly heftier resources at GSK’s disposal. We note that first patient dosing in any studies involving SRA737 will trigger a milestone payment of $2m (translating to $0.55m to Sareum).
Dish of the day Joiners: New Energy One Acquisition Corporation Plc, has joined the Main Market (Standard). NEOA is a special purpose acquisition company incorporated in the United Kingdom that has been established to focus on pursuing a Business Combination with targets that are positioned to participate in or benefit from the global transition towards a low carbon economy. Capital raised £175m. Leavers: No leavers today. What’s cooking in the IPO kitchen? Aquis Exchange (AQX.L) the exchange services group, announced its intention to apply for admission of the Group to trading on the Apex Segment of the Aquis Stock Exchange Growth Market. Aquis' shares will continue to trade on the AIM market of the London Stock Exchange plc to satisfy certain regulatory requirements. The Group is targeting admission to the AQSE Growth Market on 29 March 2022. Anglesey Mining, a UK mining company currently listed on the Main Market (Premium) intends to move to AIM. Anglesey’s principal asset is a 100% interest in the Parys Mountain copper-zinc-lead-gold-silver project on the island of Anglesey in North Wales. Anglesey is currently exploring and developing the property, which has a high potential for the discovery of additional mineral resources through the development of a new, modern mine in an environmentally sustainable manner. Anticipated Mkt Cap tbc, current capitalisation c£8m. Expected 8 April 2022. Summerway Capital plc, (AIM:SWC) to be renamed Celadon Pharmaceuticals plc following completion of the acquisition of Vertigrow Technology Ltd, is to relist on AIM. Vertigrow is a UK based pharmaceutical Company specialising in the researching, growing and supply of medicinal cannabis, for a total consideration of £80m. Summerway is an investing company focused on investment and acquisition opportunities across the healthcare and pharmaceutical sectors, particularly within new and emerging therapeutic areas. Capital to be raised on admission £8.5m. Anticipated Mkt Cap approximately £101.8m. Due 28 March 2022. Cordiant Global Agricultural Income plc intends to float on the Main Market (Premium). The Company's investment objective will be to seek to provide an attractive yield, with potential capital growth, by providing secured medium-term finance to the global agricultural sector. The Company will seek to promote more sustainable crop production and help address a capital solutions gap which exists in the agricultural sector in select regions. The Company will provide finance for crop inputs and for capital investment in new technologies and infrastructure which help increase crop yields and have a sustainable benefit. Mkt Cap and Capital to be raised TBC. Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC. Expected 18 March 2022. Cleantech Lithium intends to join AIM. The Group is intending to produce lithium using a sustainable direct lithium extraction method, which returns water to its source instead of depleting vital aquifers. Each of the Projects are based in Chile, one of the world's best regions for solar and other renewable energy. The intention is to utilise renewable energy for process power. The result being that the overall process will have a very low CO2 footprint potentially giving a critical advantage in the European Union market which has set strict CO2 emissions limits. Capital to be raised on admission ££5.6m. Anticipated Mkt Cap approximately £23.71m. Due 17 March 2022. Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company's proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late March. Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Mkt Cap and Capital to be raised TBC. Due early April 2022. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Alkemy Capital 72.5p £4.3m (ALK.L) Alkemy announced that its wholly-owned subsidiary, Tees Valley Lithium is working rapidly towards establishing the UK's first low-carbon, battery-grade lithium hydroxide processing facility, located in Britain's largest and fastest growing Freeport, Teesside. A key milestone in this journey is the completion of the Class 4 Feasibility Study, which will define (among other things) the base case technical and economic basis for the operation. The Study will also become the basis for the finalisation of approvals, as well as the next stages of detailed engineering development and major equipment procurement. TVL has commissioned Wave International to deliver the Study, which is scheduled for release in April 2022. Wave is a leading consulting firm in the battery and tech metals sector, with extensive upstream and downstream lithium processing experience. The scope of the Study includes: Metallurgical testwork programmes; Technical development of both conventional and electrochemical processing routes for producing lithium hydroxide; Engineering development for a multi-train refinery on site at Wilton International Chemical Park; Development of lithium supply strategies; Development of lithium and non-lithium product sales and marketing strategies; Base data for completion of approvals; Capital and operating cost evaluations; Project economic evaluation. As the Study nears completion, key work programmes have advanced to a mature stage. Angling Direct 52p £39.3m (ANG.L) The omni-channel specialist fishing tackle and equipment retailer, announced that its new European distribution centre is now fully operational and despatching to customers across the EU. The successful opening of the 3,940 square metre facility located in Venlo, south Netherlands, marks a significant milestone in the Company's international omni-channel growth strategy. The new facility provides significant logistical capacity to support future growth and will help the Company mitigate the increased export costs and extended customer fulfilment times seen post-Brexit that have impacted recent periods. The new facility will stock over 18,000 SKUs from more than 80 suppliers, tailored specifically for Angling Direct's European customers, and enables the Company to offer priority delivery across the EU. The management team is now focused on optimising its European growth strategy, supported by a dedicated International Commercial team and looks forward to updating shareholders in due course. Atlantic Lithium 35p £200.8m (ALL.L) The fully funded, African- focussed lithium exploration and development company on track to become West Africa's first lithium producing mine, announces that Chief Financial Officer & Company Secretary Amanda Harsas has been appointed to the Board as Finance Director with immediate effect. Amanda is a senior finance executive with a demonstrable track record and over 20 years' experience in strategic finance, business transformation, commercial finance, customer and supplier negotiations and capital management. Prior to joining Atlantic Lithium, Amanda worked across several sectors including healthcare, insurance, retail and professional services. Amanda is a Chartered Accountant, holds a Bachelor of Business and has international experience in Asia, Europe and the U.S. Bradda Head Lithium 15.75p £46.2m (BHL.L) The North America-focused lithium development group, announces that it has received conditional permission to begin a drilling programme at its Eureka project in Nevada. Bradda Head has received permission to commence a 23-hole drilling programme at its Eureka project, pending a 30-day bond payment adjudication. Previous surface sampling carried out by Bradda Head geologists identified grades of up to 550ppm Li at Eureka, this programme is designed to test the potential for a shallow clay project at surface, similar to Bradda's other clay assets in Arizona (Wikieup and Basin). Previous geophysics surveys carried out by Zonge Engineering and Terravision Exploration (PR dated 24/01/2022), results demonstrate the potential presence of both brine and clay deposits at Eureka, which is located in Central Nevada, not far from Tesla's Gigafactory and Albemarle's existing Silver Peak Lithium mine, notably the only US lithium mine in operation currently. Surveys also showed geothermal potential at Eureka, which could be used to lower the carbon footprint of lithium production at Eureka. Cora Gold 7.2p £20.8m (CORA.L) Further to the announcement of 17 February 2022, resource drilling has now commenced at the Company's Sanankoro Gold Project in southern Mali. Highlights include: 7,500m drill programme underway; Focused on enhancing the current Mineral Resource Estimate ('MRE') of 809.3 koz at 1.15 g/t Au; Strong expansion potential - all deposits remain open at depth and along strike; Drilling due to be completed in Q2 2022 with results to be released as they are received. Bert Monro, CEO of Cora, commented, "We have multiple workstreams underway as we set our sights on delivering a Definitive Feasibility Study in the coming months, alongside a resource expansion programme, which we believe will further enhance both the quantum and confidence levels of our MRE. We have consistently demonstrated Sanankoro's potential to become an open-pittable, free-digging oxide mine and work will accelerate throughout 2022 as we look to make this into reality. We look forward to sharing updates from this drill programme over the coming weeks." IDOX 63.8p £284.5m (IDOX.L) The specialist information management software and solutions to the public and asset-intensive sectors, issued a trading update ahead of today's Annual General Meeting for the period 1 November 2021 to date. Highlights for the period include: Continued resilient operational and financial performance, in line with the Board's expectations.; Order book visibility remains strong, underpinning confidence; The Group secured new contract wins and extensions in the period across both our Public Sector Software and Engineering Information Management businesses; Acquisitions completed in 2021 are integrating well and to plan; good line of sight over an attractive M&A pipeline; Further to the announcement dated 21 February 2022, Anoop Kang joins the Board and assumes the position of Chief Financial Officer of Idox following the conclusion of today's AGM. He is succeeding Rob Grubb who is taking up a newly created role focussed on advancing the Group's inorganic growth strategy. IOG 41.25p £214.6m (IOG.L) The Net Zero UK gas and infrastructure operator focused on high return projects, confirmed First Gas from the Elgood field, part of Phase 1 of its Saturn Banks Project. Following the confirmation of First Gas at Blythe on Monday, the Company yesterday also brought Elgood into production. Elgood has been developed as a subsea tie-back to the Blythe normally unmanned platform, which is controlled from Bacton terminal. As previously indicated, an initial view on flow rates will be assessed once stable production has been established from both fields. The Company intends to analyse reservoir performance data over the initial months of production to inform an annual production guidance range. ITM Power 350.4p £2,144.8m (ITM.L) The energy storage and clean fuel company, announces an update for investors as to progress on the 24 MW Leuna contract. As announced with the Half Year Results in January 2022, the Company's expectation was that Factory Acceptance Testing (FAT) on all 12 modules would be concluded by late April, with some timing risk associated with the financial year end on 30 April 2022. The Company has experienced a constraint in the local supply chain involving tooling for the scale up of stack manufacture and as a consequence, now expects the majority, but not all 12, of the modules to complete FAT in April. The balance of modules not complete as at the 30 April 2022 year end are expected to complete FAT early in the new financial year. A longer term solution for this supply chain constraint has already been defined and implemented, the benefit of which will be felt in the new financial year. Kooth 255p £84.3m (KOO.L) The UK's leading digital mental health platform, announces positive momentum for its strategy to expand its mental health support throughout the UK to people of all ages in 2022. Kooth has secured a contract to support the adult population of Greater Manchester. This builds on Kooth's success in supporting 10- to 18-year-olds in the region, and will make professional mental health support available free to the population of nearly 2m people. Kooth has further expanded its mental health support for the adult population across the UK with contract wins in Norfolk, Warwickshire and the Wirral. Kooth already provides support for children and young people (11- to 18-year-olds) in these regions. Supporting Children and Young People (CYP) Kooth has continued to expand its platform for CYP into devolved nations, with commissions in Aberdeenshire, Borders, Clackmannanshire, Falkirk, Highland, and Western Isles. These contracts are anticipated to add over £1m to Kooth's ARR during the course of 2022 as part of the Board's existing growth plan. Sareum Holdings* 142.5p £97m (SAR.L) Update on the development of its proprietary TYK2/JAK1 inhibitor SDC-1801 towards first-in-human trials. As disclosed in the Company's half-year results on 21 February 2022, the data analysis from the preclinical toxicology and safety studies required to file for an exploratory Clinical Trial Authorisation (CTA) is complete. The Company has now received the final signed report from the Contract Research Organisation that conducted these studies and, as previously reported, these data fully support the Company's plan to submit a CTA application in mid-2022 and to commence a Phase 1a clinical trial with SDC-1801 in H2 2022. SDC-1801 is being developed as a potential new treatment for a range of autoimmune diseases and for the acute respiratory symptoms of Covid-19. The report confirms that the studies met their objectives of identifying any organs or tissues that might be susceptible to high-dose toxicity and determining an appropriate dose range to test in first-in-human studies. Sareum is working with specialist clinical trial consultants to design the first clinical trial with SDC-1801. This Phase 1a trial will investigate the safety of ascending doses of SDC-1801 in healthy subjects prior to the selection of an initial indication for further clinical study in patients in any subsequent trials. The Phase 1a trial will also investigate the effect of SDC-1801 on certain biomarkers of autoimmune disease that could be predictive of efficacy when tested in patients.
SAR ITM ANG IDOX CORA IO7
Sareum Holdings plc today provides an update on the development of its proprietary TYK2/JAK1 inhibitor SDC-1801 towards first in human trials. We have published research on this which is attached and a snapshot of the research is below. The specialist drug development company today announced that it has received a final signed report from the Contract Research Organisation that has conducted the preclinical toxicology and safety studies required to file for an exploratory Clinical Trial Authorisation (CTA) for its proprietary TYK2/JAK1 inhibitor SDC-1801 to enter first in human trials. As previously reported, these data fully support the Company’s plan to submit a CTA application in mid-2022 and to commence a Phase 1a clinical trial with SDC-1801 in H2 2022. SDC-1801 is being developed as a potential new treatment for a range of autoimmune diseases and for the acute respiratory symptoms of Covid-19. The report confirms that the studies met their objectives of identifying any organs or tissues that might be susceptible to high-dose toxicity and determining an appropriate dose range to test in first-in-human studies. Sareum is working with specialist clinical trial consultants to design the first clinical trial with SDC-1801. This Phase 1a trial will investigate the safety of ascending doses of SDC-1801 in healthy subjects prior to the selection of an initial indication for further clinical study in patients in any subsequent trials. The Phase 1a trial will also investigate the effect of SDC-1801 on certain biomarkers of autoimmune disease that could be predictive of efficacy when tested in patients. We are encouraged by this approach which we believe could optimise the potential to negotiate a licensing agreement with a third party and given that TYK2/JAK1 inhibition is already relatively well characterised, there is a solid chance of a positive read out. Further, the manufacture of SDC-1801 drug substance and oral capsule formulation under Good Manufacturing Practice (GMP) conditions is on track to enable the Phase 1a trial to commence in H2 2022, pending their successful completion and the requisite CTA approval. Shares in Sareum are some 71.6% off their 12-month highs despite the significant progress made in advancing SDC-1801 towards the clinic, and the raising of sufficient funds to complete the first stage of its clinical development. The JAK Inhibitor space remains a growing multi-billion dollar market despite the further proliferation of safety warnings for existing therapies by the FDA and there is evidence to suggest that the combination of TYK2/JAK1 inhibition may offer a better safety profile than pan-JAK inhibitors as well as superior efficacy in certain auto-immune conditions. TYK2 as a target has been further de-risked of late by the submission by Bristol Myers Squibb (BMS) of a New Drug Application for their TYK2 inhibitor deucravacitinib for the treatment of adults with moderate to severe plaque psoriasis, which if successful could see marketing authorisation in the US granted by 10 September 2022, and would be the first TYK2 inhibitor approved for the treatment of any disease. There has been hope expressed by commentators close to the deucravacitinib study that the FDA may not apply the same black box warnings to TYK2 inhibitors as it has currently across the broader JAK Inhibitor family. In the autoimmune space SDC-1801’s selectivity and potential for once daily oral dosing are factors that could contribute to it becoming a class-leader. BMS believes that deucravacitinib has the potential to generate more than US$4bn in annual revenues by 2029. Meanwhile not far behind SDC-1801 in the development cycle is its stablemate SDC-1802 being investigated for cancer and cancer immunotherapy which currently faces little if any competition from TYK2 inhibitors being investigated for oncology. Having two candidates addressing multiple indications gives the Company plenty of optionality. We see multiple potential catalysts in the months ahead from Sareum’s proprietary programs, be it grant funding, delivering of the CTA on SDC-1801, or partnering progress. There is also the potential for upside from the Chk1 inhibitor SRA737 which is under licensed to Sierra Oncology (NASDAQ:SRRA) which is finalising the design of several new clinical trials, which could start in 2022. There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP.
Sareum’s H122 results (to end-December 2021) provided an update on the company’s progress with its therapeutic pipeline. With final toxicology and safety studies for lead asset SDC-1801 completed in Q4 of CY21 (final report expected by end-Q122), the company is on track to file an exploratory clinical trial application (CTA) in mid-2022 and start clinical studies in H222. The cash balance of £5.6m at the end of H1 should be sufficient to take SDC-1801 through Phase Ia clinical trials and accelerate SDC-1802’s preclinical progress, with the company continuing to assess options to further clinical development. Sareum completed the 50:1 share consolidation it announced at the December 2021 AGM, with the new shares starting trading on 1 March.
Good Afternoon, Sareum Holdings plc this week released a patent update, an AGM statement and a successful subscription raising £1.63m. We have published research on this which is attached and a snapshot of the research is below. The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of autoimmune diseases and cancer yesterday released its AGM statement, in which it has reported that the final toxicology and safety studies required to file for an exploratory Clinical Trial Authorisation (CTA) have been completed. Sareum expects the finalised reports in the first quarter of 2022. The data from these studies will be crucial to the progression of this CTA, which the Company remains on track to submit during mid-2022. Whilst data analysis is still in progress, Sareum is confident that the studies have met their objectives of identifying any organs or tissues that might be susceptible to high-dose toxicity and determining the appropriate first-in-human dose. Sareum stated that the results received to date fully support its plan to submit the CTA for SDC-1801. Today, Sareum announced that it has raised gross proceeds of £1.63m through a subscription by new and existing high net worth individuals at a price of 5p. The net proceeds from the Subscription will enable the Company to advance its two proprietary TYK2/JAK1 inhibitor programmes: SDC-1801, which is targeting autoimmune diseases, including the potentially life-threatening hyper-inflammatory response (the “cytokine storm”) that affects some Covid- 19 patients, through Phase 1a clinical development; and SDC-1802, which is targeting cancers, through preclinical development; as well as for working capital purposes. We are increasing our FY June 22E expenditure expectations to £3m and are forecasting £3.5m of expenditure in FY June 23. Based on our projections which assume the CTA is filed and accepted on a timely basis, and no non-dilutive grant funding or milestones from SRA737, Sareum would be left with cash of £0.6m as at the end of June 2023. Whilst SDC 1801 is further down the development pathway than its stablemate SDC-1802, experience in the development of SDC-1801 will aid development of SDC-1802, including the design of toxicology and manufacturing studies. Earlier this week, Sareum announced that the European Patent Office has issued an Intention to Grant notice for a patent in respect of an invention associated with Sareum's proprietary SDC-1802 TYK2/JAK1 Kinase Inhibitor Programme. The anticipated patent will protect the SDC-1802 molecule and pharmaceutical preparations thereof as a therapeutic to treat TYK2- dependent T-cell acute lymphoblastic leukaemia (T-ALL - a cancer of a particular type of white blood cell called a T lymphocyte) by inhibiting TYK2 kinase. Sareum is building a broad robust patent protection for its proprietary TYK2/JAK1 inhibitor candidates as they advance through their respective development programmes, to ensure that Sareum retains full value in these programmes as part of its business development discussions. In the AGM statement, Sareum affirmed that it is highly encouraged by recent disclosures from Sierra Oncology, the licence holder of SRA737, its promising clinical-stage Checkpoint Kinase 1 (Chk1) inhibitor, relating to its possible advancement. In August 2021, Sierra in-licensed the BET inhibitor AZD5153 (now known as SRA515) from AstraZeneca and noted how it might combine SRA515 with SRA737 as a potential pipeline expansion opportunity. Sierra has subsequently referred to its plans to initiate additional clinical studies in the first half of 2022 with pipeline agents including SRA737 in other haematologic and solid tumour indications. Specifically, reference was made to a potential role for SRA737 in combination studies with novel agents in solid tumours, including pancreatic cancer, where patients have become resistant to PARP inhibitors. The PARP combination has been supported by recent research, namely a study published by researchers from the Sapienza University of Rome in October 2021, “A combination of PARP and CHK1 inhibitors efficiently antagonizes MYCN-driven tumors” implying potential chemotherapy-free treatment of neuroblastoma and childhood medulloblastoma. The synergistic activity of the two inhibitors, allowed the researchers to reduce the dosage of the Chk1 inhibitor to be administered in vivo, thus significantly reducing the toxicity problems associated with this type of drug, while still maintaining a strong anti-tumour efficacy. The dosing of the first patient with SRA737 in any clinical trial would trigger a $2.0m payment from Sierra, under the amended $290m licensing deal between Sierra and CRT Pioneer Fund LP (CPF) on SRA737, signed in November 2020. Under the amended agreement, Sareum is eligible to receive a 27.5% share of this and any future milestone payments. We are not currently assuming such a receipt in our forecasts. Sareum continues to believe that, based on preclinical and early clinical data, SRA737 holds great promise for the treatment of cancer, particularly in combination settings, and looks forward to further updates on progress from Sierra. Shares in Sareum are some 40% off their 12-month highs. However, the completion of toxicology studies for SDC-1801 and the receipt of sufficient funding to complete Phase 1a studies on the same candidate are both significant milestones for Sareum and strengthen the Company’s position when it comes to prospective partnering discussions. The JAK Inhibitor space remains a growing multi-billion dollar market despite the further proliferation of safety warnings for existing therapies by the FDA and there is evidence to suggest that the combination of TYK2/JAK1 inhibition may offer a better safety profile than pan-JAK inhibitors as well as superior efficacy in certain auto-immune conditions. TYK2 as a target has been further de-risked of late by the submission by Bristol Myers Squibb of a New Drug Application for their TYK2 inhibitor deucravacitinib for the treatment of adults with moderate to severe plaque psoriasis, which if successful, could see marketing authorisation in the US granted by 10 September 2022, and would be the first TYK2 inhibitor approved for the treatment of any disease. In the auto-immune space, SDC-1801’s selectivity and potential for once daily oral dosing are factors that could contribute to it becoming a class-leader. Meanwhile SDC-1802 currently faces little if any competition from TYK2 inhibitors being investigated for oncology. Whilst Sareum does not intend to take either SDC-1801 or SDC-1802 to marketing authorisation, the Directors will continue to review the potential value of a later-stage licensing deal versus the requirement for any additional funding. Having two candidates addressing multiple indications gives the Company plenty of optionality. We see multiple potential catalysts in the months ahead, be it grant funding, delivering of a CTA on SDC-1801, partnering progress on the proprietary programs, or progress on SRA737 which still has the potential under the renegotiated agreement with Sierra to generate $88m for Sareum in milestone payments, plus sales royalties. There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP.
Sareum’s annual general meeting (AGM) on 16 December provided key updates on its upcoming business plans. Final toxicology and safety studies for lead asset SDC-1801 (which is essential in applying for an exploratory clinical trial authorisation, CTA) have been completed, with study data expected to be finalised by Q122. CTA filing remains on track for mid-2022. The funding situation has been bolstered with the most recent fund-raising (£1.63m on 16 December) and Sareum estimates the pro forma cash balance (c £6m) to be sufficient to take SDC-1801 through Phase Ia clinical trials and complete preclinical studies for SDC-1802. A key highlight of the AGM was the board’s decision to consider undertaking a share consolidation in 2022 (terms of the consolidation will be discussed at an extraordinary general meeting (EGM) planned for early 2022). The intention is to reduce the number of shares outstanding (currently 3.37bn) with the objective of generating interest from institutional investors.
Sareum’s lead asset SDC-1801 is inching closer to completing its preclinical toxicology studies, although the decision to pursue a capsule alternative to the original suspension formulation, at the cost of a further delay in the clinical trial application (CTA) filing (now expected mid-2022), comes as a surprise. Management asserts that the new formulation adds value to the programme (removing the need to develop capsules at a later stage) and is supported by £4.6m of funds raised in calendar Q221/Q321. While we see merits in the strategy, continued delays may concern the market. Encouragingly, out-licensed asset, SRA737, seems to be gaining traction after Sierra Oncology’s decision to reassess it in combination with other targeted therapies. We expect that the next few months will be crucial for Sareum.
Sareum Holdings PLC have published Final Year Results. We have published research on this which is attached and a snapshot of the research is below. The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of autoimmune diseases and cancer, announced its results for the year ended 30 June 2021. It has been a period of significant progress for its selective TYK2/JAK1 Inhibitors, which have reported further strong pre-clinical results, attracted grant funding for research into the treatment of Covid-19 and have had their IP rights further protected through several patent filings and grants. Meanwhile there are promising signs that the Chk1 inhibitor SRA737, that has already shown encouraging clinical efficacy, is seeing its clinical program restarted by the licensee Sierra Oncology, which could generate cash inflows relatively quickly and generate significant value over the long term. Sareum reported a net loss for the year of £1.5m (2020: loss of £0.96m), reflecting the increased R&D expenditure required for preclinical development. The Company raised £2.37m before expenses in June 2021 through two subscriptions to a high net worth individual. Cash at bank as of 30 June 2021 was £2.7m (£1.3m as at 31 December 2020) and post period Sareum raised a further £2.18m (before expenses) through share subscriptions to two additional high net worth individuals plus an exercise of warrants. Sareum has disclosed that cash at bank was £4.4m as at 30 September 2021. We highlight the key progress and next steps to be taken in Sareum’s proprietary pipeline. SDC-1801 (autoimmune diseases and severe Covid-19) SDC-1801 continues to advance with its preclinical phase nearing completion. Drug product manufacturing in preparation for first clinical studies is underway and expected to complete during H1 calendar 2022. Consultants have been appointed to assist in developing the plan for initial clinical studies and an Exploratory Clinical Trial Application (CTA) is now expected to be filed mid-2022 owing to the additional time needed to manufacture a capsule drug product. Sareum believes this will add value to the programme and remove the need to develop capsules at a later stage. First clinical studies are targeted to begin shortly thereafter, subject to drug product supply, and gaining the requisite approvals and additional funding. Promising cellular and in-vivo results from the completed UK Research & Innovation (UKRI) funded research project (£171k awarded) suggest the therapeutic potential of SDC-1801 in severe phase Covid-19. These results in infected lung cells and in vivo disease models demonstrate that SDC-1801 reduces levels of key inflammatory agents known to play a role in the serious and potentially life-threatening hyper-inflammatory response that affects some Covid-19 patients. Sareum is now considering how it might make use of the UK government’s AGILE clinical trial platform, or other equivalent programmes, to fund and support Phase 1 trials with SDC-1801 for Covid-19 applications and potentially fast-track its development. It is evident that that there is still a clear need for new therapies to treat severe respiratory inflammation arising from viral infections such as Covid-19 despite the success of the UK vaccination programme and the availability of vaccines around the world. With TYK2 acknowledged as a key therapeutic target for severe Covid-19 in an article published in December in the leading scientific journal Nature, Sareum believes that SDC-1801 could have a role to play in this area in the future. Encouraging preclinical data was also reported with Sareum’s TYK2/JAK1 inhibitors in systemic lupus erythematosus disease models – studies conducted by co-development partner SRI International under a US Department of Defence grant. Furthermore, a patent application describing a number of crystalline forms of a TYK2 inhibitor for medicinal applications, filed by Sareum in April 2020, was published on 14 October 2021. This type of patent is standard pharmaceutical industry practice and an important step to fully protect the intellectual property surrounding the Company’s research programmes and to extend the life span of its patent portfolio. SDC-1802 (cancer immunotherapy) Translational studies are underway to define the optimal cancer application prior to completing toxicology and manufacturing studies and two new US patents have been granted (January and September 2021) strengthening patent protection, which is now in place across all major territories. The JAK inhibitor space is already a multi-billion dollar market, but the currently marketed therapies face significant issues. In September the FDA expanded safety warnings and restricted use of three approved rheumatoid arthritis drugs—Pfizer's Xeljanz, Eli Lilly's Olumiant and AbbVie's Rinvoq, citing an increased risk of serious cardiac events as a class effect. This will of course need to be considered in Sareum’s clinical plans. The first TYK2 inhibitors, with no marketed therapies yet authorised are heading towards authorisation and validation/safety data is growing. Bristol Myers recently reported data from the Phase 3 POETYK PSO-1 and POETYK PSO-2 trials showing that response rates for deucravacitinib continued to increase through Week 24 and were maintained through Week 52 in patients with moderate to severe plaque psoriasis. Deucravacitinib was well-tolerated and had a similar safety profile in both trials, with no new safety signals identified through 52 weeks of data. Sareum’s compounds also are selective against Jak 1 (a point of differentiation). There is evidence to support that JAK2 and JAK3 inhibition are the stronger drivers of adverse events (JAK selectivity and the implications for clinical inhibition of pharmacodynamic cytokine signalling by filgotinib, upadacitinib, tofacitinib and baricitinib; Paqui G Traves, Bernard Murray, Federico Campigotto, René Galien, Amy Meng, Julie A Di Paolo http://dx.doi.org/10.1136/annrheumdis-2020-219012). Deucravacitinib has been less successful in Ulcerative Colitis missing the primary and secondary objectives in the LATTICE-UC trial announced this month. It is possible once again that the addition of JAK1 inhibition could improve efficacy in this indication. Bristol Myers Squibb continues to expect greater than $4 billion non-risk adjusted revenue target for deucravacitinib in 2029. The increasingly well-trodden clinical path of TYK2 inhibitors in inflammatory skin diseases would perhaps provide the quickest validation for Sareum’s differentiated candidates, but it may well be less well explored options such as Lupus which has reported strong pre-clinical data that prove to be more commercially attractive. Similarly SDC 1802 currently faces little if any competition from TYK2 inhibitors being investigated for oncology. There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP.
Joiners Peel Hunt (PEEL.L) has joined AIM, a leading UK mid and small-cap specialist investment bank operating across three divisions: Investment Banking, Research & Distribution and Execution & Trading. The main country of operation of the group is the UK. In FY21 the Group continued its strong performance momentum, generating revenues of £196.8m, up from £95.5m in the previous year. Size of offer £112m, of which £40m was new shares and the balance was selling shareholders. Market cap on listing £280m. Leavers No leavers today What’s cooking in the IPO kitchen? Castlenau Group to join the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of £170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of £25m in the Initial Placing. Due 18 Oct. Tortilla Mexican Grill, the largest and most successful fast-casual Mexican restaurant group in the UK to join AIM. Offer TBA. Due 8 Oct Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag's growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. Due October. Light Science Tech Holdings, the holding company of the Group's contract electronics manufacturing division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture division, Light Science Technologies Ltd to join AIM. Due early Oct. Offer TBA. Responsible Housing REIT to join the Main Market (Premium) raising up to £250m. The Company's investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals. Made Tech, a provider of digital, data and technology services to the UK public sector to join AIM. Founded in 2008 and now with a headcount of over 240 across four UK locations (London, Manchester, Bristol and Swansea), Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform. Total offer £85.4m. Primary £15m. Mkt cap £180.6m. Due 30 Sep. Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow's wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow's wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. Due end Sep. Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m Timing and offer TBA. Oxford Nanopore Tech—to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. The Company has recently entered into a memorandum of understanding with Oracle Corporation whereby the two companies will explore collaboratively a number of potential new solutions to address opportunities in the applied and clinical markets, and related go-to-market strategies. Separately, the Company and a vehicle controlled by Oracle have entered into a cornerstone investment agreement, pursuant to which such entity has irrevocably agreed, subject to certain customary conditions, to subscribe for £150m of a total raise of circa £300m. Due early Oct. Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA. Optima Health is the UK's leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA. Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October. Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September. Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company's main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Alpha FX Group 2,010p £823.1m (AFX.L) Alpha FX Group plc, a provider of FX risk management and alternative banking solutions to corporates and institutions internationally, today announces the launch of its alternative banking platform for the alternative investment sector. As part of this launch, the Group intends to open an office in Luxembourg to show its commitment to the local market, which represents a significant opportunity for the alternative investment banking solution. This follows a lengthy and highly successful 'private launch' of the platform within Alpha's existing client base. This provided the Group with the time to gather user insights and develop further enhancements as it worked towards launching 'Version 2' of the platform, released in May 2021. Anglo Asian Mining 135p £154m (AAZ.L) Anglo Asian Mining, a gold, copper and silver producer operating in Azerbaijan has signed 'Heads of Terms' with the Government of Azerbaijan, which awards the Company three new concessions with a combined area of 882 square kilometres. Two of the new concessions border the existing Gedabek and Gosha Contract Areas. They contain the large-scale Garadagh porphyry deposit and the adjacent Xarxar copper deposit and assessment of these valuable assets will start immediately. A comprehensive exploration programme to prepare JORC compliant mineral resource and ore reserve estimates will commence after ratification of the new concessions. Development will follow the finalisation of the ore reserve estimates and the Company anticipates ore will be extracted by open pit mining. The third new concession area is called Demirli and is adjacent to the Kyzlbulag Contract Area in the Karabakh economic region. The Demirli concession contains the Demirli copper-molybdenum deposit. As part of the Agreement, the Company will relinquish its rights to the Soutely mine in the Kalbajar district. This follows the Company's assessment of Soutely's security risks and the significant capital expenditure required to develop the mine over the longer timeframe. However, the Company is in discussion with the Government to obtain alternative exploration territory in the Kalbajar district. Cadence Minerals 18.25p £27.1m (KDNC.L) Cadence Minerals announces that Castillo Copper (ASX/LON: CCZ) (Castillo) has entered into a 90-day option agreement with Lithium Technologies Pty Ltd and Lithium Supplies Pty Ltd in whichCadence owns a 29% shareholding, to acquire subject to due diligence the Litchfield and Picasso Lithium Projects in the Northern Territory and Western Australia respectively. Consideration for 100% of the holding companies which hold these assets (plus others) is up to AUS$3m in equity of Castillo. Cadence CEO Kiran Morzaria added: "The potential acquisition by Castillo provides Cadence with an exposure to developing copper assets which complements our already substantial lithium portfolio. Moreover, given Castillo's established in country leadership and cash position we see this potential acquisition by Castillo as the best strategic approach to maximize returns for our shareholders. We look forward to seeing Castillo develop these assets further." Gfinity 4.05p £44.4m (GFIN.L) Gfinity, a world-leading esports and gaming solutions provider, today announces it has entered into a commercial agreement with Coca-Cola Hellenic Bottling Company as the tournament operator for its upcoming Coca-Cola COPA Challenge, presented by The Coca Cola Company. The Coca-Cola COPA Challenge (https://www.coca-colacopa.com/ie) is a new competitive gaming tournament launched by Coca-Cola HBC and presented by The Coca Cola Company, which will see gaming influencers compete against one another at the prominent Football Manager title. Football Manager is the highly popular football management simulation game developed by British developer Sports Interactive and published by SEGA. The month-long tournament will run throughout October consisting of 8 shows broadcast digitally. Under the terms of the agreement, Gfinity will be responsible for the full operation of the tournament from the design stage through to launch and broadcast delivery. In addition, Gfinity also announces today it has been appointed by ASK4 as the tournament operator for the company's sponsored FIFA 22 tournament for students in purpose-built student accommodation. The tournament will run week commencing 20th November 2021. ASK4 is a specialist Internet service provider, delivering superfast connections to students and residents in multi-tenant buildings throughout the UK and Europe. Gfinity will be responsible for the full operation of the tournament. ImmuPharma 7.26p £19.3m (IMM.L) The specialist drug discovery and development company announces interim results for the six months ended 30 June 2021. Financial highlights include: Cash balance of £4.2m as at 30 June 2021 (31 December 2020: £5.9m); loss for the period of £3.7m (30 June 2020: £3m); research and development expenses of £1.3m (30 June 2020: £0.9m). Lupuzor™ (P140) is entering a pharmacokinetic study prior to the optimised Phase 3 study in lupus in conjunction with its licensing partner, Avion Pharmaceuticals. P140 for Chronic Inflammatory Demyelinating Polyneuropathy, a neurological disorder targeting the body's nerves is in active preparation for a phase 2/3 clinical study has now been initiated. New Board established: Tim McCarthy appointed as Chief Executive Officer, Dr Tim Franklin appointed as Chief Operating Officer and Dr Sanjeev Pandya & Lisa Baderoon appointed as NED’s. Mirada 65p £5.9m (MIRA.L) A leading provider of integrated software solutions for digital TV operators and broadcasters announces its final results for the year ended 31 March 2021. Highlights include: revenue of $11.13m (2020: $13.16m ), in line with market expectations; gross profit of $10.84m (2020: $12.48m); a net loss for continuing activities of $2.99m (2020: loss of $1.11m); and net debt at 31 March 2021 of $7.07m (2020: $5.05m). José-Luis Vázquez, CEO of Mirada, commented: "The past year has been challenging in many ways, but we emerge from it a stronger business with a powerful product offering that puts us at the forefront of the latest market trends; impressive references; a leaner, more efficient sales strategy; and a growing proportion of recurring revenues. We have ambitious plans to drive the business forward in the coming months and I look forward to keeping shareholders updated." Mosman Oil and Gas 0.1525p £5.7m (MSMN.L) The oil exploration, development, and production company announces an update on the Winters-2 well in Polk County, Texas. Further to the announcement made on 21 September, Mosman confirms the equipment to drill the well has started to arrive onsite. Spud is expected in the next few days and the drilling is scheduled to take 7-10 days. A further update will be made upon completion of drilling. Sareum Holdings* 6.7p £230.6m (SAR.L) The specialist drug development company, notes that Sierra Oncology, the licence holder for SRA737 (a novel Chk1 inhibitor where Sareum stands to receive 27.5% of the economics of a license agreement which comprise aggregate outstanding milestones of up to $290.0m plus royalties), presented at 21.00 BST on 28 September at the 2021 Cantor Virtual Global Healthcare Conference in a Fireside Chat. During this conference and included in a slide of recent and upcoming milestones, Sierra Oncology's CEO, Stephen Dilly, referred to the initiation of additional clinical studies with pipeline agents including SRA737 in other haematologic and solid tumour indications in the first half of 2022. Specifically, reference was made to a potential role for SRA737 in combination studies in solid tumours, including pancreatic cancer, where patients have become resistant to PARP inhibitors. Sareum's CEO, Dr Tim Mitchell, commented : "This timeline for the possible initiation of combination studies by Sierra including SRA737 in the first half of 2022 is very encouraging and would represent a significant advance in the development of the SRA737 programme. We look forward to further updates on the clinical development of SRA737, a molecule that has shown great promise in clinical trials and preclinical studies, particularly in combination with other types of cancer therapy."
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Sareum Holdings PLC made an announcement noting that Sierra Oncology presented as the 2021 Cantor Virtual Global Healthcare Conference. We have published research on this which is attached and a snapshot of the research is below. Sareum Holdings PLC, the specialist drug development company today made an announcement noting that Sierra Oncology (NASDAQ:SRRA), the licence holder for SRA737 (a novel Chk1 inhibitor), presented at 21.00 BST on 28 September at the 2021 Cantor Virtual Global Healthcare Conference in a Fireside Chat. During this conference and included in a slide of recent and upcoming milestones, Sierra Oncology's CEO, Stephen Dilly, referred to the initiation of additional clinical studies with pipeline agents which include Sierra’s SRA515 and/or SRA737 in other haematologic and solid tumour indications in the first half of 2022. Specifically, reference was made to a potential role for SRA737 in combination studies in solid tumours, including pancreatic cancer, where patients have become resistant to PARP inhibitors. In a previous discussion, noted by Sareum on 6 August 2021, of the rationale for in-licensing BET inhibitor AZD5153, now known as SRA515, from AstraZeneca, Sierra referred to possible pipeline expansion opportunities in other haematologic or solid tumour indications. These included potential combinations with SRA737, immune-oncology agents, PARP inhibitors and drugs with other mechanisms of action. Sierra has also noted that SRA515 has shown preclinical efficacy in combination with a diverse range of agents, and that synergy between SRA515 and a family of DNA damage response agents, known as ATR inhibitors, suggested potential utility in combination with SRA737. Previously SRA737 has shown positive preliminary safety & efficacy data in combination with low-dose gemcitabine (LDG) in a broad Phase 1/2 clinical development programme in solid cancers, particularly anogenital cancer, as well as very promising results in preclinical studies in combination with LDG and an immune checkpoint inhibitor. Development of SRA737 has been on hold since H2 2019 as Sierra prioritised its resources on the development of its Phase 3 candidate momelotinib. We are encouraged by the prospective reboot of the SRA737 clinical programme. SRA737 was discovered and initially developed by scientists at The Institute of Cancer Research in collaboration with Sareum, and with funding from Sareum and Cancer Research UK. Sareum stands to receive 27.5% of the economics of a license agreement which comprise aggregate outstanding milestones of up to $290.0m plus royalties. We understand that a milestone payment of $2m would become due to the consortium (Sareum 27.5%) upon the dosing of the first patient of the first trial of SRA737 following an amendment last year. Whilst investor attention has been firmly focussed on Sareum’s TYK2/JAK1 inhibitors, SRA737 has the potential to generate cash inflows beyond the £4.55m of gross proceeds generated by equity subscriptions over the summer, the last of which was issued at a price of 8.25p, and material value over the long term. With Sareum having a greater economic interest in the TYK2/JAK1 programmes however, the potential for value creation here is much larger and Sareum last guided that the Company aims to commence Phase 1 clinical trials for SDC-1801 in early 2022, subject to successful completion of the ongoing preclinical toxicology studies, gaining the requisite approval and financing and to file a Clinical Trial Application (CTA) by the end of Q4, subject to no further delays. The JAK inhibitor space has been in the spotlight of late with the FDA recently issuing safety warnings and use restrictions on AbbVie’s Rinvoq, Eli Lilly’s Olumiant and Pfizer’s Xeljanz. As yet there are no TYK2 candidates on the market and we believe that Sareum’s compounds are sufficiently differentiated to carve out a strong position in this multi-billion dollar market, subject to successful clinical progress.
Sareum released a trading update on 19 August ahead of its full-year results (financial year end 30 June 2021) expected in October 2021. Final pre-clinical studies on the lead asset, TYK2/JAK1 inhibitor SDC-1801, are now expected to commence in Q421 (previously Q321) due to COVID-19 induced supply disruptions. The timeline for the clinical trial application (CTA) and Phase I clinical trials, however, remains unchanged (end Q421 and early 2022 respectively). Short-term liquidity issues have been alleviated following two subscriptions to high net-worth individuals raising £2.37m in June and a further c £2.18m in July and August 2021. Although increased R&D expenses widened the FY21 net loss to £1.6m (versus £0.96m in FY20), the cash balance has improved (£2.7m at the end of June 2021 versus £1.3m at the end of December 2020).
Sareum Holdings have published a Trading Update ahead of their full year results. We have published research on this which is attached, and a snapshot of the research is below. The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases has given a trading update ahead of its full year results for the year ended 30 June 2021, expected for release in October 2021. Despite recent delays in compound supply leading to a delay in final preclinical trials, Sareum still aims to submit a Clinical Trial Application for the first of its compounds in the programme, SDC-1801 (autoimmune diseases) by the end of Q4, subject to no further delays. First clinical trials – safety studies in healthy volunteers – may commence in early 2022, subject to gaining the requisite approval and funding. With gross proceeds of £2.37m raised in subscriptions in June 2021, and a further £2.18m raised post period, we believe that only a modest amount of funding would be required to complete a Phase 1 trial, regardless of whether Sareum pursues options such as the U.K. government's AGILE clinical-development platform, which was established to fund Phase 1 trials and fast-track the development of potentially ground-breaking Covid-19 treatments. In a recent UKRI-funded Covid-19 research project for SDC-1801, it was found that SDC-1801 reduced the levels of cytokines associated with Acute Respiratory Distress Syndrome (ARDS) in human lung cells infected with SARS-CoV-2 and demonstrated a profile that was superior to the anti-inflammatory steroid dexamethasone and similar to baricitinib, a JAK1/JAK2 inhibitor. Subsequently completed in-vivo studies have shown SDC-1801 to down-regulate type 1 interferons (IFNa and IFNb), cytokines implicated in multiple auto-immune conditions as well as severe-phase Covid-19. On SDC-1802 (cancer immunotherapy) Sareum continues to work on the design of the translational studies needed to define the optimal cancer application prior to completing toxicology and manufacturing studies. The Company announced, on 30 July 2021, that a notice of allowance had been received from the US Patent and Trademark Office in respect of a patent (Application no. 16/343,639) protecting SDC-1802 and its use in treating certain cancers. Subject to certain formalities being completed, the patent is expected to be granted within three months. The Company continues to monitor licence holder Sierra Oncology’s activities as it explores options to fund the future development of SRA737, a Selective Chk1 inhibitor. Sareum continues to believe that the amended licensing agreement between Sierra and CRT Pioneer Fund (CPF) could expedite the advancement of the SRA737 programme in a timely manner. Post period-end, during an Investor Presentation on 6 August 2021, Sierra announced the in-licencing of the BET inhibitor, AZD5153, from AstraZeneca and noted potential combinations with SRA737 as a possible pipeline expansion opportunity. Further clinical activity on this promising programme could herald the resumption of milestone payments to Sareum. There still remains the prospect of SRA737 becoming a class leader and we have recently seen the revival of another candidate in the space prexasertib which Eli Lilly has now out licensed to Acrivon Therapeutics. SRA737 which has already shown good signs of efficacy in the clinic offers the advantage of oral delivery, and we understand superior selectivity. In terms of other financial highlights Sareum reported that the loss on ordinary activities (after taxation) for the year ended 30 June 2021 is expected to be approximately £1.6m (2020: loss of £0.96m), reflecting the increased R&D expenditure required for preclinical development. Cash at bank as at 30 June 2021 is expected to be approximately £2.7m (£1.3m as at 31 December 2020; £1.8m as at 30 June 2020). We have updated our forecasts to reflect this guidance. TYK2 inhibitors promise to herald a new era in the treatment of autoimmune diseases, with a likely significant safety advantage over currently marketed JAK inhibitors. The preclinical data to date suggests that the selectivity of Sareum’s compounds over TYK2 and JAK1 kinases, combined with oral availability could generate one or more class leaders in a likely multi-billion dollar market. Furthermore, Sareum has first mover advantage with SDC-1802 in terms of TYK2 candidates targeting cancers. As Sareum closes in on moving this programme to the clinical stage, we would expect investor interest to remain high. TYK2 remains a key focus area of larger industry players exemplified by Nimbus Therapeutics recent US$105m fundraise, and BMS targeting the launch of Deucravacitinib for Psoriasis (potentially the first in the class and thereby fantastic validation) next year. There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP.
The specialist drug development company, this week announced that it had raised £1m before expenses, through a subscription by a high net worth individual at a price of 7p. The new Subscriber will also be issued one fiveyear warrant, exercisable at the subscription price, in the event that the Company's closing middle market share price is above 9p per Ordinary Share for five consecutive days. If exercised in full, the warrant would generate further gross proceeds of £1m. There remain 10m warrants outstanding, at a strike price of 4.9p, from the subscription announced on 15 June 2021 which could generate a further £0.49m. There are also management options in issue at strike prices between 0.59p to 1.65p which if all exercised would generate proceeds of circa £1.7m. Sareum ended December 2020 with £1.3m of cash, and it has since had in-flows (gross) of some £3.7m from subscriptions, warrant exercises and tax credits. Sareum’s CEO, Dr Tim Mitchell, disclosed that these new funds will allow Sareum both to advance SDC-1801 into clinical development in autoimmune diseases, including the immune overreaction to Covid-19 and other viral infections, and to progress the preclinical development of its second TYK2/JAK1 inhibitor SDC-1802 against cancers. Subject to a smooth applications process and final preclinical results, these funds could conceivably see SDC-1801 through to the end of a small Phase 1 study in healthy volunteers. The Company is targeting the completion of preclinical studies for SDC-1801 in Q3 2021 We have re-introduced forecasts for the Company out to FY Jun 2022 expecting an increase in expenditure next year to circa £2.5m which anticipates further pre-clinical work on SDC-1802 and the likely initiation of an initial clinical trial in SDC-1801 to establish safety and tolerability in humans. With over £2m projected cash balances for June 2022 (assuming no milestone receipts or further fundraising activity), this should provide sufficient cash runway to complete the initial leg of the preliminary study in the following financial year. In terms of potential non-dilutive sources of funding, there remains the possibility of further milestones to be received in relation to SRA-737, the Chk1 inhibitor licensed to Sierra Oncology (NASDAQ:SRRA). The recent successful completion of Sareum’s UKRI grant funded Covid-19 research project on DDC- 1801 may also open up other sources of non-dilutive funding. These include the UK government's AGILE clinical development platform, which was established to fund Phase 1 trials and fast-track the development of potentially ground-breaking Covid-19 treatments. TYK2 inhibitors promise to herald a new era in the treatment of autoimmune diseases, with a likely significant safety advantage over currently marketed JAK inhibitors. The preclinical data to date suggests that the selectivity of Sareum’s compounds over TYK2 and JAK1 kinases, combined with oral availability could generate one or more class leaders in a likely multi-billion dollar market. Furthermore, Sareum has first mover advantage with SDC-1802 in terms of TYK2 candidates targeting cancers. As Sareum closes in on moving this programme to the clinical stage, we would expect investor interest to remain high.
The specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases announces encouraging top-line results from its UKRI grant funded Covid-19 research project. The project has completed on schedule, with the final results confirming the initial encouraging results as noted in the Company’s Interim Results, published on 23 April 2021. The results of the project found that SDC-1801 reduced the levels of cytokines associated with Acute Respiratory Distress Syndrome (ARDS) in human lung cells infected with SARS-CoV-2 and demonstrated a profile that was superior to the antiinflammatory steroid dexamethasone and similar to baricitinib, a JAK1/JAK2 inhibitor. Both of these have been important treatments in patients with severe phase Covid-19. Overall dexamethasone reduced the 28-day mortality rate by 17% in the ‘RECOVERY’ trial and reduced deaths by one-third in ventilated patients. The COV-BARRIER trial, which reported results earlier this year, found that Baricitinib-treated patients were 2.7% less likely than those receiving standard of care treatment alone to progress to ventilation or death, but the results were not statistically significant. However, when looking just at deaths, the results showed that treatment with baricitinib in addition to standard care significantly reduced the likelihood of death from any cause by 38%. SDC-1801’s TYK2 selectivity is a key differentiator to currently marketed JAK Inhibitors such as baricitinib. We understand that biochemical assays have shown that baricitinib is 10-fold less potent an inhibitor of TYK2 as it is against JAK1 and JAK2. It is JAK2 inhibition that is thought to be one of the key drivers of side effects of the first generation of JAK inhibitors. Subsequent completed in-vivo studies support the initial cellular results and indicate strong evidence that expression of Type 1 interferons (IFN alpha and IFN beta) is reduced by SDC-1801 treatment in a dose-responsive manner, and that viral loads did not increase after SDC-1801 administration, a potential concern when anti-inflammatory agents are used to dampen down an overactive immune response. Type 1 interferons are key immunoregulatory cytokines implicated in conditions such as Psoriasis, Irritable Bowel Syndrome, Lupus, viral and bacterial pneumonia, as well as resistance to cancer immunotherapies. A secondary objective, the investigation into whether treatment with SDC-1801 in disease models could protect against bacterial pneumonia following SARS-CoV-2 infection was inconclusive, due to technical shortcomings in the disease model. This is a significant moment for Sareum, both as a standalone project and as part of the wider data package for SDC 1801. Subject to successful completion of the ongoing preclinical toxicology studies, requisite approvals and financing, the Company aims to commence Phase 1 clinical trials for SDC-1801 in early 2022, as previously guided. In parallel to the broader development plan for SDC-1801 for autoimmune diseases, Sareum is keen to progress the Covid-19 project to the next stage and will explore options to fund next steps. This could include the UK government’s AGILE clinical development platform, which was established to support Phase 1 trials and fast-track the development of potentially ground-breaking Covid-19 treatments.
The specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases has raised £900,000, before expenses, through a subscription by a high net worth individual at a price of 2.8p per share. The Subscriber will also be issued one five-year warrant, exercisable at the Subscription Price, for every five Subscription Shares issued, which can only be exercised following the Company's closing mid-market share price being above 5p per Ordinary Share for five consecutive days. The Subscription Price represents a premium of approximately 8 per cent. to the closing mid-market price for Sareum Shares on 28 May 2021. The subscription monies will be used to progress the Company's SDC-1801 TYK2/JAK1 inhibitor drug development programmes as well as for working capital purposes. As noted in last week’s Trading Update, Sareum is targeting the completion of these preclinical studies in Q3 2021, subject to successful progress. Clinical trial plans, including priority autoimmune indications and potential Covid-19 application, will also be developed in parallel, subject to additional funding being raised. The revised guidance set out in last week’s update disclosed that Sareum now expects these final toxicity and safety studies to complete in Q3 2021 and a Clinical Trial Application (CTA )for SDC- 1801 to be filed in Q4, subject to no further delays. The Company had previously guided that the filing of the CTA was expected mid-year 2021. Should the CTA be filed in Q4 2021, this may enable the Company to commence first clinical trials in early 2022, subject to financing. This Subscription, together with any further funds raised and grants awarded to Sareum, will also help Sareum to further explore the potential benefit of SDC-1801 against Covid-19 and TYK2/JAK1 inhibitor SDC-1802 against cancers. The nearest term news flow on the horizon is the completion of the UKRIfunded Covid-19 research project for SDC-1801, expected to complete on schedule with the experimental phases finishing in June and the data analysis to complete shortly thereafter. Initial results from this research are encouraging and demonstrate that SDC-1801 reduces the levels of cytokines associated with Acute Respiratory Distress Syndrome (ARDS) in human lung cells infected with SARS-CoV-2. If the completed studies are successful, the Company plans to explore the possibility for further UK government funding from the recently launched AGILE clinical development platform, which has been established to fund Phase 1 trials and fast-track the development of potentially ground-breaking Covid-19 treatments. Sareum is not aware at this time of any additional updates from Sierra Oncology regarding its plans for the further development of SRA737, the CHK1 inhibitor in which Sareum is eligible for 27.5% of the economics of a licensing deal by the CRT Pioneer Fund to Sierra Oncology. Sareum is, however, encouraged by Sierra’s appointment of Mark Kowalski, MD, PhD as Chief of Research and Early Development, to focus on, among other things, the ongoing evaluation of development opportunities for Sierra's pipeline assets. Furthermore, Sareum continues to believe that the licensing agreement amendment signed in November 2020 between CRT Pioneer Fund and Sierra will help expedite the SRA737 development programme. A milestone payment of $2m would become due to the consortium upon the dosing of the first patient of the first trial of SRA737 following the amendment. The funding is a strong show of confidence in Sareum’s ability to deliver best in class compounds. The TYK2 pathway is showing considerable promise as an effective mechanism for targeting autoimmune conditions and has the potential to be both safer and more effective than the broader JAK class inhibitors currently on the market. The successful completion of dose ranging studies for SDC-1801 earlier this year have helped to significantly de-risk the pathway to first in human studies. As yet there have been no approvals of selective TYK2 inhibitors and as such Sareum is well positioned to target commercially viable indications. The space is receiving significant attention from the likes of Bristol Myers Squibb whose deucravacitinib has recently been the subject of encouraging phase 3 data. SDC-1801’s additional JAK1 inhibition provides valuable differentiation. Further it is our belief that SDC-1801 is the only TYK2 inhibitor being formally investigated for the 'cytokine storm' immune system overreaction to Covid-19 and other viral infections. There is potential for significant clinical advantages over the likes of Pan-JAK inhibitors such as baricitinib which was recently granted emergency use approval in India to help combat the country’s devastating second wave. Sareum’s shares have performed outstandingly up 339.7% over the last year. Today’s funding has been conducted with limited dilution to existing holders and enables Sareum to continue advancing SDC-1801, through its final preclinical studies. Progress on that front or successful result from the UKRI study (and the potential additional non-dilutive funding that would bring) are the most likely near-term catalysts for further share price appreciation.
Kinase inhibitor specialist Sareum develops small molecule therapeutics with application in oncology and autoimmune disease areas. Lead asset SDC-1801 targets the autoimmune space and is nearing an inflection point, with a planned clinical trial application (CTA) filing in mid-2021 and clinical progression in Q421. The other candidate, SDC-1802, is focused on cancer and holds first-in-class promise with value to be unlocked with clinical validation. The out-licensed assets, SRA737 and FLT3+Aurora kinase, are currently de-prioritised but offer upside potential on revived activity.
The specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases today reported half yearly results for the six months to December 2020. Against a backdrop of modest losses, the period was one of significant progress for Sareum’s two selective TYK2/JAK1 programmes, namely SDC1801, targeting autoimmune diseases, and SDC-1802, targeting cancer. Today’s release reveals that for SDC-1801 pre-clinical studies have enabled Sareum to establish the doses to take it forward into the pivotal toxicology studies required for a Clinical Trial Application (CTA) submission. An Exploratory Clinical Trial Application is expected to be filed mid-year 2021 subject to successful completion of final toxicity and safety studies. Further Sareum has reported that initial results from the UKRI grant-backed project to investigate the therapeutic potential of SDC-1801 in severe phase Covid-19, have been encouraging and demonstrate that SDC-1801 reduces the levels of cytokines associated with Acute Respiratory Distress Syndrome in human lung cells infected with SARS-CoV-2.
Watchstone Group plc (LON:WTG) intends to apply for admission of its Ordinary Shares to trading on the Access segment of the AQSE Growth Market operated by the Aquis Stock Exchange (AQSE). It is expected trading will commence on 30 April 2021. Catena Group (CTNA.L) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager's data science and machine learning strategy. Capital to be raised on Admission approximately £6.1m. Mkt cap c. £66.4m. Due 10 May. Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Emmerson EML.L moving from the Standard List to AIM, The Company's current market capitalisation is approximately £46m, based upon its share price at close of business on 24 March 2021 of 6 pence per Ordinary Share. Raising £5.5m on admission. Emmerson is a potash development company focused on the development of the Khemisset Potash Project located in Northern Morocco, approximately 90km from the capital city, Rabat, and the planned bulk port of Kenitra Atlantique and 175km from the port of Mohammedia. The Project has a JORC Resource Estimate (2019) of 537Mt @ 9.24% K2O and exploration potential with a development pathway targeting a low capital expenditure and high margin potash mine. Due 27 April. Dispersion Holdings PLC, an investor in the high growth FinTech sector within the UK, the USA and Canada, has announced its intention to IPO on the Access Segment of the Aquis Stock Exchange Growth Market. The Board intends to deploy the majority of the Company’s cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad FinTech sector, and to apply expertise to the business operations and strategic plans of these companies. Target Admission Date of 30 April. Darktrace plc. Intends to float on the main market of the London Stock Exchange (premium). Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security. Due early May. Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m. Expected April.
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AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7 million by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this Spring. Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company's premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.” NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Auction Technology Group is considering an IPO on the Main Market. The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions . In FY20 the Group delivered pro forma revenue of £52.3 million, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3 million pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent. Expected March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. 4basebio UK Societas is a specialist life sciences group focused on therapeutic DNA for gene therapies and DNA vaccines and providing solutions for effective and safe delivery of these DNA based products to patients. The Company has been divested from 4basebio AG , a German company listed on the Prime Standard segment of the Frankfurt Stock Exchange . No capital to be raised on Admission. Anticipated market capitalisation on AIM Admission: £14.53m.
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The bulk of Sareum’s value rests on the late preclinical autoimmune therapy SDC-1801, with planned filing to start clinical development in H121 followed by possible exploratory clinical studies, if funding allows, from H221. This could open the way to a substantive partnering deal from Q222. Partnering could be helped if the related BMS therapeutic deucravacitinib gains FDA approval and blockbuster sales in psoriasis. Sareum could offer a partner a promising route to an autoimmune therapy with potentially broad indications.
The specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases reported that the licensing partner for its FLT3+Aurora kinase programme (FLT 3 programme) has decided not to exercise its option to continue the development of the programme. Worldwide rights to the FLT3 programme, as well as data relating to progress made by the Licensee, will therefore revert to Sareum.
Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan. HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
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The specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases has noted that a multi-centre analysis of DNA samples from patients with severe forms of Covid-19, including symptoms caused by the over-active inflammatory response or "cytokine storm", has identified TYK2 as a key causative genetic mechanism and a potential target for therapy. This observation, which was published online as an Accelerated Article Preview by Nature on 11 December 2020 (Pairo-Castineira, E. et al.) is consistent with the scientific rationale supporting Sareum's recent successful UK Research & Innovation (UKRI) grant application for its proprietary TYK2/JAK1 inhibitor, SDC-1801.
Further to Sareum’s announcement on 27 October 2020, it has today confirmed that the formal Grant Offer Letter from UK Research & Innovation (UKRI) has been approved. This confirms Sareum’s successful application for approximately £174,000 in grant funding to investigate the therapeutic potential of SDC-1801, its selective, small molecule TYK2/JAK1 kinase inhibitor, in severe phase Covid-19.
The specialist drug development Company, delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases, has announced amended terms to the 2016 licensing agreement between Sierra Oncology and CRT Pioneer Fund LP (CPF) for the Chk1 inhibitor SRA737.
Sareum Holdings PLC, the specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases, this week announced that its application for approximately £174k grant award by UK Research & Innovation (UKRI) to investigate the therapeutic potential of SDC-1801, its selective, small molecule TYK2/JAK1 kinase inhibitor, in severe phase Covid-19, has been conditionally approved. Subject to formal approval, Sareum has agreed to contribute an additional c.£64k in cash and commit additional management time to the project, which is expected to take circa six months to complete.
The specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases has announced its results for the year ended 30 June 2020. The period reported and beyond has been one of strong progress for the Company and includes a licensing deal for its FLT3+Aurora kinase inhibitor programme, strong pre-clinical progress for its Selective TYK2/JAK1 Inhibitors in Autoimmune Diseases and Cancer as well as a grant application to fund initial studies for the use of these compounds to treat the most serious symptoms associated with COVID 19. This has all been achieved with a significantly reduced cost-base and further action has been taken to strengthen the balance sheet. The end of 2020 and early 2021 have the potential to see a clinical trial application for SDC-1801, a grant award and initial studies for the use of TYK2/JAK1 inhibitors for the symptomatic treatment of COVID 19 and a £0.9m milestone payment from the FLT3+Aurora programme.
Last week the specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases provided a trading update ahead of its full year results for the year ended 30 June 2020. In the same week, Sareum also hosted an online presentation for investors, highlighting that its development activity is now 100% focused on the development of its proprietary TYK2/JAK1 inhibitors where Sareum is continuing initial discussions with potential partners to secure commercial licences for its assets when they reach late preclinical or early clinical stages. Sareum’s compounds in this space, SDC1801 (for autoimmune) and SDC-1802 (cancer immunotherapy) are differentiated from existing ‘JAK’ family inhibitors by their selectivity (and implied favourable safety profile) and potential for once daily oral dosing.
The specialist drug development Company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases has announced a fundraise of £1.02m at 0.6p. This included £0.3m via the PrimaryBid platform whereby retail investors were given the opportunity to participate on the same terms as institutional investors.
Caribbean Investment Holdings. Incorporated in Belize. Readmission to AIM. CIHL.L primarily operates financial services businesses through its subsidiaries The Belize Bank Limited and Belize Bank International Limited, both located in Belize and international corporate services through Belize Corporate Services Limited. CIHL shares are also traded on the Bermuda Stock Exchange. Lord Ashcroft holds 75%. No capital raise. 2019 net profit US$ 10.7m. Mkt cap £38.6m.
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The specialist cancer drug discovery and development business has today announced a deal which is set to crystallise value and near term cash generation from what was viewed by many to be a non-core asset for Sareum. Sareum has entered into an agreement with a Shanghai main market-listed Chinese specialty pharmaceutical company; the Licensee will make an initial upfront payment of £50,000 to Sareum, with a further Development Payment of c. £0.9m due on the earlier of achieving certain milestones on the oral bioavailability of the Compounds or nine months from the date of the agreement.
African Export-Import Bank a supranational financial institution whose purpose is to facilitate, promote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE. DNEG Limited intends to apply for admission of its Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities. The Offer will be comprised of new Shares to be issued by the Company (to raise expected gross proceeds of £150m). Admission is expected to take place in November 2019.
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Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected 18 Oct 2019. African Export-Import Bank a supranational financial institution w hose purpose is to facilitate, prom ote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE.
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The specialised small molecule drug development business, today announced its results for FY June 2019. Sareum’s greatest focus at present is the progression of its two distinct proprietary selective TYK2/JAK1 inhibitors in autoimmune diseases and cancer. SDC 1801 (autoimmune) is the furthest advanced in terms of work completed to move towards clinical trials and has progressed into longer-term toxicology and dose-finding studies, which would form part of the regulatory documentation needed to apply to begin human trials. However SDC 1802 (cancer) is showing signs of potentially netting a bigger prize with positive preclinical data demonstrating the antitumour activity of SDC-1802 via novel immunotherapeutic mechanism of action to be presented at the upcoming 2019 AACR-NCI-EORTC International Cancer Conference.
Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected Oct 2019.
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Kaspi.kz, the largest Paym ents, Marketplace and Fintech Ecosystem in Kazakhstan w ith a leading m arket share in each of its key products and services. GDR offering expected Oct 2019. In the first half of 2019, the Company generated total revenue of KZT226,862m (U.S. $598m), up 34% and net income of KZT77,001m (U.S. $203m), up 54%. Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019.
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The specialist cancer drug discovery and development business has provided a trading update for the year ending 20 June 2019. In many ways 2019 has been an astonishing validation for Sareum’s strategy of designing best in class targeted therapeutics focussing on emerging but clinically justified targets. The first Sareum candidate to enter human trials, the oral selective Chk1 inhibitor SRA737, currently under the stewardship of Sierra Oncology (SRRA) demonstrated notable anti-cancer activity in multiple indications including a 30% Overall Response Rate in evaluable patients with anogenital cancer treated with SRA737+LDG (low-dose gemcitabine).
The specialist cancer drug discovery and development business has conducted a successful fundraising of £681k at 0.4p. The recently appointed Non-executive Director Clive Birch subscribed for 1.25m shares at the placing price. The net proceeds will be used to progress the Company's TYK2/JAK1 drug development programmes as well as for working capital purposes.
IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas w hich have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC
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SRA737, the Sareum originated Chk1 inhibitor which is the subject of the Company’s first licensing deal, has had data released from the ongoing monotherapy and low dose gemcitabine (LDG) trials by Sareum’s licensing partner Sierra Oncology, Inc. (Nasdaq:SRRA), in two poster presentations at the 2019 Annual Meeting of the American Society of Clinical Oncology. We believe the results and implications for further clinical development significantly de-risk the program and accelerates the possible pathway to development for the first indication.
Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
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Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. Offer TBC, expected 29 May 2019. Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
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The specialist in small molecule drug development has highlighted data announced this week at the American Association of Cancer Research annual meeting by Sierra Oncology (NASDAQ:SRRA) the license holder for the Chk1 inhibitor SRA737 originally developed by Sareum. The oral presentation described significant anti-tumour activity when combined with anti-PD-L1 immunotherapy and low dose gemcitabine (LDG) in a mouse model of small cell lung cancer (SCLC). Immunotherapy, which harnesses our own immune system in the fight against cancer, has been heralded as a new paradigm in cancer treatment and indeed the current market leading immunotherapy, Merck’s PD-1 Inhibitor Keytruda is on track to gross $8bn of revenues this year.
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC
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Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
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The specialist in small molecule drug development has summarised its recent activity, ahead of today’s AGM. On the Chk 1 program out-licensed to Sierra Oncology (NASDAQ:SRRA), Sierra has been helping to stack the odds of future clinical success of SRA737 in its favour by prioritising patients with high-grade serous ovarian cancer, where data suggests that genetically prescreened patients could have a strong chance of responding favourably. A clinical trial data update is now expected to take place in mid-2019, with Sierra suggesting that these data will be submitted for presentation at the ASCO annual conference.
PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised. Due 21 Dec. Mkt cap c.£80m Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer raising £20m at 52p. Due 19 Dec. Mkt Cap £56.5m. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected mid December.
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Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission. Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected early December. Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA. Due early Dec The Panoply parent company of a digitally native technology services group founded in 2016 with the aim of identifying and acquiring best-of-breed specialist information technology and innovation consulting businesses across Europe, is looking to join AIM. Offer £5m new capital, £400k sell-down, market cap of £30m, expected late 4 Dec 2018.
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The specialist in small molecule drug development, has this week seen the admission of shares to trading on AIM relating to a placing of £850k at a price of 0.65p. The net proceeds of the placing will be used to progress the Company's TYK2/JAK1 drug development programmes as well as for working capital purposes. We leave our FYJun19E profit and loss projections unchanged, but have amended our cashflow forecast accordingly, leaving Sareum with an estimated year end cash balance of £0.45m (previous estimate:£0.35m cash deficit). Sareum now has two distinct molecules in the class which it is aiming to advance towards clinical trials in humans.
PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quoting before the end of 2018. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due Mid October 2018. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
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PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM listing before the end of 2018. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due 28 Sep. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa. Recent press reports suggests listing on track before end of 2018.
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The specialist small molecule drug development Company has made the formal selection of a development candidate from its TYK2 inhibitor programme to advance through preclinical development as a potential new treatment for autoimmune diseases. The Company is also completing its assessment of promising dual TYK2/JAK1 inhibitors for the potential treatment of certain cancers and expects to nominate a lead candidate in the near future.
Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due late Sep. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m. Offer TBA. Due Mid September Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
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The licence holder advancing clinical cancer candidate SRA737 (the Chk1 inhibitor), has reported its Second Quarter Results. Simultaneously, it updated on SRA737’s clinical development. In the monotherapy study Sierra had previously announced that it would focus on high grade serous ovarian cancer (HGSOC), supported by emerging data in the field that provides clinical validation for Chk1 inhibition in this indication. Due to the enrolment of approximately 65 genetically defined HGSOC patients into this trial, Sierra is now expecting to report preliminary data in H1 2019, a small extension from the previous Q4 2018 target. We believe that the change in the trial designs to prioritise patients with high grade serous ovarian cancer (HGSOC) optimises the chance of a positive outcome, given the validation of this target evidenced by Lily’s Prexasertib data released earlier this year. Preclinical data by Sierra is also supportive of this rationale. We therefore believe the trade-off between trial optimisation and slightly extended timeline, is a decision well made.
The specialist cancer drug discovery and development business has regained worldwide rights to preclinical-stage small molecule inhibitors of Aurora and FLT3 kinases that have shown potential in acute myeloid leukaemia (AML) and other haematological cancers. The preclinical development candidate, to which Sareum regains the rights, has shown promise against a range of haematological cancer models including AML and Acute Lymphoblastic Leukaemia (ALL) with good tolerance of the candidate drug at the predicted therapeutic dose, and no significant side effects being seen.
Block Energy— UK based oil exploration and production company whose main country of operation is the Republic of Georgia. Raising £5m at 4p. Mkt cap £10.3m. Due 11 June. | Codemasters Group— video game developer and publisher, specialising in high quality racing games. Offer primary raise of £15m, secondary of £170m at 200p. Market cap of £280m. Due 1 June.| Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June. | Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Offer TBA. Due Late May
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Rosenblatt Group -specialist litigation and contentious restructuring law firm established in 1989 based in the City of London. Offer TBC. Due 8 May. Supreme, a leading manufacturer and supplier of branded consumer batteries, a manufacturer and supplier of branded and licensed consumer lighting and a leading manufacturer and supplier of vaping products in the United Kingdom, is looking to join AIM. Offer TBC, expected early May 2018 KRM22, a closed-ended investment company with a particular focus on risk management in capital markets, is looking to join AIM. Offer tbc, expected 30 April 2018 Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase). Raising c.£10m. Offer TBA. Due mid May.
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The specialist cancer drug discovery and development business has released H1 Dec 2018 results. Chk1 remains the key short-term value driver and potential source of cash flow. Sareum’s licensing partner Sierra Oncology (NASDAQ:SRRA) is spearheading the push to commercialise SRA737 as a best in class oncology therapy focussed on disabling cancer cells’ DNA damage repair (DDR) capabilities. It has made excellent progress in the dose escalation portions of both the monotherapy, and low-dose Gemcitabine studies, and the efficacy stages of these trials are now targeting some ten cancer indications. Initial results from these studies are due in Q4 calendar 2018, and any positive news could potentially trigger a material six figure milestone payment. Furthermore, a combination study with an existing DDR therapy, niraparib, is planned by Sierra to start in Q4 and a trial design for an immunotherapy combo trial is under way.
SimplyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money. Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area. Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. Expected Mid March Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due 26 March Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
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VR Education Holdings—a virtual reality software and technology company. Raising £6m, mkt cap c €22m. Due 12 March SimplyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money. Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd Stirling Industries—Acquisition vehicle focusing on industrials. Offer TBA. Due 5 March. GRC International Group— holding company for a group of companies providing a range of products and services to address the IT governance, risk management and compliance requirements of organisations. Offer raising £5m at 70p with market cap of £40.2m, expected 5 Mar 2018 Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area. Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. Expected Mid March Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due Early March Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
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implyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money. Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd Stirling Industries—Acquisition vehicle focusing on industrials. Offer TBA. Due 5 March. GRC International Group— holding company for a group of companies providing a range of products and services to address the IT governance, risk management and compliance requirements of organisations. Offer TBC, expected 5 Mar 2018 Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area. Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. Expected 21 Feb Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due Early March Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
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The specialist cancer drug discovery and development business has released its AGM statement, recapping on a transformational year, and looking ahead to 2018. The key event of the last financial year was the licensing agreement with Sierra Oncology over Sareum’s Chk1 program. This has already significantly improved Sareum’s P&L and balance sheet with FYJun17 seeing payments of nearly £2m relating to the agreement, and Sareum recognising a maiden profit of £400k.
Pelatro— The precision marketing software specialist. Due 19 Dec. Raising £3.8m new money plus £0.6m vendor sale. 62.5p. Mkt cap £15.2m. HYJun17 revenues increased to US$1.55m from US$0.2m and profit before tax increased to £1.0m from a small loss in the comparable period. Fusion Antibodies— Sch1 from the Belfast based contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Offer to raise £5.5m for the Company and £1.075m for selling shareholders at 82p with market cap of £18.1m. Due 18 Dec Erris Resources PLC—a mineral exploration and development company currently focused on two geographic areas. Offer TBC, expected 21 December 2017 CIP Merchant Capital—Closed ended investment Company. Sector focus oil & gas, healthcare, pharma, and real estate. Offer TBA. Due 21 Dec Panthera Resources— The Company was established to act as a holding company for Indo Gold Limited, an unlisted Australian registered company. The Company aims to explore and develop gold assets in India and West Africa. Offer TBC, expected 20 Dec Sumo Group—one of the UK's largest independent developers of AAA-rated video games providing both turnkey and codevelopment solutions, including initial concept and pre-production. Offer TBC. Due late Dec Pelatro—provider of proprietary software solutions to enterprise-level customers for various aspects of precision marketing for use in B2C applications. Offer TBC, expected 19 December 2017 Fusion Antibodies—contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Raising £5.5m at 82p plus £1.075mn vendor sale. £mkt cap £18.1m Due 18 Dec. Sirius Petroleum—RTO. Becoming an operating company in the Ororo Field in Nigeria. Raising £7.2m/ Mkt Cap £35.6m. Due 19 Dec. Bushveld Minerals—RTO of Bushveld Vametco and therefore 78.8% of Strategic Minerals Corporation, the intermediate holding company that owns a 75 per cent. interest in the Vametco Vanadium Mine. Eqtec—Company with access to a proprietary advanced gasification technology used in industrial size power plants to convert waste into synthetic gas to generate electricity. Raising £1.6m. Mkt Cap £8.7m. Due 21 Dec. Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £71m market cap. FYMar18E rev £241.5m and £7.19m PBT Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native invideo advertising. 2016 rev £0.7m and £7.3m operating loss. Offer TBA. Expected 19 Dec. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
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The specialist cancer drug discovery and development business has reported FYJun2017 results showing a £1.45m swing in profitability and a bottom line of £400k. Sareum ended the period with a significantly enhanced balance sheet. The key event in the period was the inking of a commercial licensing agreement of the Company’s novel Chk1 inhibitor targeting solid cancers (now named SRA737) with Sierra Oncology (NASDAQ:SRRA). Sareum is eligible to 27.5% of up to $328.5 million in upfront, development and commercialisation milestones, as well as royalties on sales. Sareum’s share of payments received so far is $2.475m.
Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov | Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017. | Totally (TLY) - Sch 1 for £11m RTO of Vocare, a provider of integrated urgent care services to the NHS throughout the UK. £76.8 million rev in the year ended 31 March 2017. Totally to address Care Quality Commission concerns. Due 24 Oct. | Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. | OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. | Orogen plc, to be renamed Sosandar plc on Admission. Sosander is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap| of £16.1m, expected 2 November 2017 | OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, epected late October | ContourGlobal LP— contracted wholesale power generation businesses, with 69 thermal and renewable power generation assets in Europe, Latin America and Africa. In the year ended 31 December 2016 it generated $905.2 million of combined revenue and $440.4 million of Adjusted EBITDA. Raising c.$400m. Expected November | TI Fluid Systems—Maybe second time lucky? Pulled last October. global manufacturer of automotive fluid storage, carrying and delivery systems seeking to raise €425m to reduce financial leverage (to approximately 2.0x net debt to Adjusted EBITDA by the end of FY 2017). Possible partial sale by Bain. Revenue for FY 2016 was €3.3 billion and Adjusted EBIT was €362.1 million | M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 13 Nov | Bakkavor Group - Provider of fresh prepared food intends to float in November. FY 16 Revenue: £1,763.6 million FY 16 Adjusted EBITDA: £146.4 million (13.7% CAGR FY 14-FY 16). Part vendor sale and primary raise of c. £100m. Price TBA | Russia’s En+, owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower. reported to be seeking dual London and Moscow listing raising $1.5bn | TMF Group , which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m. | People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance
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The specialist cancer drug discovery and development business has updated on trading for the year ended 30 June 2017. Sareum now expects that subject to audit, net profit and cash balances will be ahead of market expectations. Our forecasts were suggesting net profit of £0.2m and cash of £2.1m and we therefore expect those to be exceeded. We have increased our expected cash balances by 10% to £2.3m and continue to forecast a flat working capital position implying that the enhanced cash flow is purely enhanced by profitability. We therefore increase our net profit forecast to £0.4m. An R&D update will be given in mid-October with the full year results.
Warehouse REIT - The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas. The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 per cent. for the year ending 31 March 2019. Issue price 100p. Raising up to £150m. | Destiny Pharma—A clinical stage biotechnology company - lead asset (XF-73) targets antibiotic-resistant bacterial infections in hospitals. Offer TBA. Due early September. | Avingtrans (AVG.L) Sch1 on its Reverse Takeover of Hayward Tyler (HAYT). Combined market cap of c.£75m. Expected 01 September 2017 | OnTheMarket—Intention to float on AIM to raise c. £50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. | Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 September 2017
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Touchstone Exploration— Oil exploration and production company active in the Republic of Trinidad and Tobago. Interests of approximately 90,000 gross acres. Production c. 1,300 boepd. Raising £1.45m. Expected mkt cap £7.5m. Due 26 June. I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in Early June Tiso Blackstar Group—Schedule 1 update. Media, entertainment and marketing solutions group/ £160m mkt cap. Admission only. Expected late June. ScotGems—Admission due 26 June. Seeking £50-£100m. To investing in a diversified portfolio of Small Cap Companies listed on global stock markets DP Eurasia—Intention to float from the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia . £20m primary raise plus a partial vendor sale. Film Finances—Sky News reports that ‘movie financing company with credits including the Hollywood hits La La Land and Nocturnal Animals is plotting a blockbuster premiere on the London stock market that will value it at several hundred million pounds.’ Expected ‘during the summer’. AIB—Intention to float from AIB, Ireland's leading retail and commercial bank . The Minister for Finance intends to sell approximately 25% of the Ordinary Shares of AIB. Prospectus and announcement of the price range due in mid-June 2017. Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. Flying Brands (FBDU.L)—Prospectus approved by FCA. RTO of Stone Checker Software, supplier of technology solutions in the field of kidney stone analysis and prevention. Has raised £550k at 3p. Subject to GM on 15 Jun. Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe
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The specialist cancer drug discovery and development business yesterday flagged the progress announced by its licensing partner, Sierra Oncology’s (NASDAQ: SRRA) on the two ongoing Phase 1 trials of the Chk1 inhibitor, SRA737. We have made some small adjustments in our indicative valuation model marginally improving the probability of progressing to phase II, but also reflecting the recent US patents which extend protection in the world’s largest market to 2033.
I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 26 May admission. Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in late May. Tiso Blackstar Group—Schedule 1 update. Media, entertainment and marketing solutions group/ £160m mkt cap. Admission only. Expected late June. Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. Flying Brands (FBDU.L)—Prospectus approved by FCA. RTO of Stone Checker Software, supplier of technology solutions in the field of kidney stone analysis and prevention. Has raised £550k at 3p. Subject to GM on 15 Jun. AEW UK Long Lease REIT—Intention to Float. Up to £150m raise. Admission early June. UK specialist and alternative property Alfa Financial Software –Intention to float. Mission-critical software platform purpose-built for asset finance enterprises. Vendor sale of 25% plus. FYDec16 rev £73.3m (CAGR of 24% from 2012). Adjusted EBIT £32.8m. Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe ADES International— Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa, seeking raise up to $170m plus vendor sale under a Standard Listing of the Main Market. Admission due May 2017. PRS REIT—Private rental sector REIT raising up to £250m. Admission due 31 May
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Opera Investments –Reverse Takeover of Kibo Mining’s subsidiary Kibo Gold. Raising £1.5m. Expected mkt Cap £6.5m. 23 May. Eve Sleep— Schedule 1 from the e-commerce focused, direct to consumer European sleep brand. Offer details TBC. Expected Mid May Velocity Composites—Schedule 1. Manufactures advanced carbon fibre and ancillary material kits (predominantly carbon fibre) for use in the production of aircraft. Mid May admission expected. Offer details TBC. Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in May. Alfa Financial Software –Intention to float. Mission-critical software platform purpose-built for asset finance enterprises. Vendor sale of 25% plus. FYDec16 rev £73.3m (CAGR of 24% from 2012). Adjusted EBIT £32.8m. Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe ADES International— Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa, seeking raise up to $170m plus vendor sale under a Standard Listing of the Main Market. Admission due May 2017. Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $200m+ raise including $75m primary offer. Expected price range 735p to 875p. Mkt cap up to £539m Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence. PRS REIT—Private rental sector REIT raising up to £250m. Admission due 31 May
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The specialist cancer drug discovery and development business has reported HY December 2016 results registering a maiden net profit of £573k driven by the licensing deal agreed in September 2016 with Sierra Oncology (NASDAQ:SRRA). In H1, Sareum booked a £1.3m share of profits on the initial up-front payment. Post year end, a further £0.45m share from the first milestone payment, has left the Company confident of reporting a modest full year profit. We are forecasting a FY June 2017 profit of £0.2m reflecting increased investment in the TYK2 programmes and our projections are looking for a year end cash balance of £2m (£2.3m as at December 2016).
Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
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The specialist cancer drug discovery and development business this week announced the attainment of a US$2m success milestone payment as part of the Chk1 licence agreement between its co-investment partner, the CRT Pioneer Fund, and Sierra Oncology, Inc. (NASDAQ: SRRA), formerly, until this week, ProNAi Therapeutics, Inc. The fee has become payable because of the successful transfer of the two ongoing Phase 1 clinical trials to Sierra Oncology. Under Sareum's agreements with Cancer Research Technology and the CRT Pioneer Fund, Sareum is entitled to 27.5% of all payments arising from the Chk1 licence agreement. Therefore, Sareum will receive $550,000 as its financial share of this milestone event. Sareum will also be returned the unspent balance, now estimated at c£200,000, of the financial commitment to the trial funding of £797,500 made in December 2015.
Sareum Holdings * (SAR.L) | ABCAM (ABC.L) | Wey Education (WEY.L) | H&T Group (HAT.L) | Everyman Media Group (EMAN.L) | Impax Asset Management (IPX.L) | Nichols (NICL.L) | Focusrite (TUNE.L) | Majestic Wines (WINE.L) | Science in Sport (SIS.L)
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The specialist cancer drug discovery and development business has announced final results for the year ending 30 June 2016. It is a year that saw the Company get its first clinicaltrial approvals granted, a milestone that resulted in a significant licensing deal being granted to Sareum and its co-development partner less than four months after clinical trials of the Chk1 inhibitor cancer drug candidate opened. This substantially strengthens Sareum’s cash position. In addition to the $1.9M upfront payment, there could be up to $88.4m in further milestones, plus sales royalties. Sareum is well placed to progress the assets that remain under its control and explore new potential autoimmune and anti-cancer drug candidates, either from its own kinase library or by in-licensing early stage discoveries from external sources.
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Followers of the specialist cancer drug discovery and development Company were rewarded for their patience at the end of May this year when its CHK1 inhibitor programme saw a candidate (CCT245737) enter the clinic, some nine years after its Company and its partners announced that its compounds showed activity in targeting Checkpoint Kinase 1. The journey between the first in man dosage and license agreement has been much quicker with an agreement announced this week with NASDAQ listed ProNAi therapeutics for up to US$319.5m in milestone payments, plus an upfront payment of $7m and a further $2m payable upon the successful transfer of the two ongoing Phase 1 clinical trials to ProNAi, plus up to low double digit royalty payments to the partners.
Sareum is a specialist small molecule drug discovery and development company with programs in oncology and inflammatory disorders. Sareum is virtual, using collaborators and contract research organisations to progress its programs and then out-licensing them in return for up-front payments, future milestones and long-term sales royalties. Sareum, together with its partner CRT Pioneer Fund, has announced the exclusive licence and worldwide rights for its Chk1 pre-clinical cancer candidate CCT245737 (renamed PNT737) to ProNAi Therapeutics Inc, for $7m upfront, plus a total of $321.5m potential milestones, and sales royalties.
We have had a timely reminder from Sareum that there is more to the company than its lead CHK1 inhibitor candidate which is currently undergoing two phase 1 clinical trials. The specialist cancer drug discovery and development business has announced that the Chinese Patent Office and the Hong Kong Patents Registry have issued notifications that patents will be granted for inventions associated with Sareum's Aurora+FLT3 Kinase Inhibitor Programme. These patents describe compounds that inhibit the activity of Aurora and FLT3 kinase enzymes and the medical use of these compounds, particularly in the treatment of cancer.
Sareum Holdings* (SAR.L) | Conroy Gold and Natural Resources* (CGNR.L) | MedaPhor Group (MED.L) | Mi-Pay Group (MPAY.L) | TechFinancials (TECH.L) | Telit Communications (TCM.L) | Science in Sport (SIS.L) | Red24 (REDT.L) | StatPro Group (SOG.L)
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Sareum announced this week that its application for two Phase 1 clinical trials under its CHK 1 inhibitor programme, had received regulatory approval and that dosing is expected to begin during the current quarter. We understand that the collaboration with the CRT Pioneer Fund is seeking to license the candidate to a larger partner either during or after the Phase 1 dose escalation study.
The specialist cancer drug discovery and development business last week announced a Research and Co-Development Collaboration update as well as its interim results. Investor attention is currently focused on the recently submitted dual Phase 1 clinical trial applications for the Checkpoint Kinase 1 (CHK1) programme targeting lung, pancreatic and other cancers, in partnership with the CRT Pioneer Fund. We would expect a response from the UK Medicines & Healthcare products Regulatory Agency over the coming weeks, and all going well the dosing of patients could begin in the current half year. Meanwhile work continues on the other portfolio programmes.
The specialist cancer drug discovery and development business has announced that the Clinical Trial Applications for Phase I clinical trials of CCT245737, the CHK1 Programme clinical development candidate drug, were submitted to the UK Medicines and Healthcare products Regulatory Agency (MHRA) on 29 January 2016. This is on schedule and we understand that the MHRA typically takes up to thirty days to process applications subject to there being no further requests for information. With this in mind CHK1 could be in patients as early as the spring of this year.
The specialist cancer drug discovery and development business has announced that its partner, the CRT Pioneer Fund, intends to complete the clinical trial application for the company’s lead oncology candidate CHK1 in January 2016. This suggests that the team has achieved the comfort it requires from preclinical work to proceed. As such this has triggered Sareum’s initial financial contribution to the Phase I trials; £797,500 will be paid this month from existing resources. We consider the company’s first clinical trials to be a watershed moment for Sareum, giving the company enhanced currency in terms of potential licensing deals.
The specialist cancer drug discovery and development business has announced final results for FY June 2015 with losses of £1.25m against our expectation of £1.5m largely due to the short term deferral of Clinical Trial Applications (CTA) for Checkpoint Kinase 1. The lead candidate in collaboration with the Cancer Research Technology Pioneer Fund will now be the subject of two CTAs in parallel seeking to test the molecule as a single agent in various cancer types as well as in combination with existing chemotherapies. The decision to examine both clinical pathways from the outset of dosing patients will require additional work but also help to maximise CHK1’s commercial potential.
The specialist cancer drug discovery and development business has today announced that the discovery and biological characterisation of its lead candidate CHK1 inhibitor CCT245737 has been published in the peer-reviewed journal, Oncotarget. The paper describes how oral delivery of CCT245737 boosts the effectiveness of conventional chemotherapies and could be used to treat lung and pancreatic cancers. This is not the first time the science behind the programme being co-funded by Sareum and the Cancer Research Technology Pioneer Fund has been flagged in eminent publications. In 2013 for example an article appeared in the International Journal of Radiation Oncology Biology Physics.
The drug discovery company last week announced a fund raising of 1.44m at 0.25p. This comes ahead of a pivotal period for the Cambridge based developer of therapies whose science is based on kinase inhibition, as it progresses its candidates towards the clinic. This comes just a few weeks after the early conclusion of Sareum’s Equity Swap Agreement with YA Global Master SPV (YAGM). The earlier facility agreed with YAGM in 2012 expires in September this year and we understand it is not management’s intention to draw down upon it beforehand.
Sareum, the specialist cancer drug discovery and development business, last week announced half-yearly results for the six months ended 31 December 2014, together with a research and co-development collaborations update. In terms of financials Sareum finished the period with £429k of cash and unspent investment in the CHK 1 project of a further £447k which sees the project funded until the completion of the ongoing toxicology studies. A further £76k was received post year end in respect of tax credits. The H1 loss of £0.65m is in keeping with our FY expectation of £1.3m, although on a cash basis operational cash outflows were less at £0.3k.
