Following the failure of earlier Juvista trials to reduce scarring following breast augmentation and mole removal, Renovo hopes that the efficacy of its flagship drug will be greater if administered twice, a day apart. Much now rests on the success of further trials to demonstrate this, as the company is pushing to commence its first European Phase III trial before the end of the year.
Renovo's fortunes rely heavily on the success of Juvista. It has an exclusive licensing agreement with Shire to develop and commercialise the drug, and Shire has already committed a $75m (£37.7m) upfront payment and $50m equity investment. If Juvista reaches successful development and commercialisation, Renovo stands to receive further payments of up to $700m together with escalating royalties. Shire is assessing the trial results to date and will seek external regulatory and other expert advice before deciding on its future strategy for Juvista.
Nomura forecasts EPS for the year to September 2008 of -8.4p (-12.33p in 2007).
| RENOVO (RNVO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 33p | MARKET VALUE: | £62.6m | |
| TOUCH: | 32.75-33.25p | 12-MONTH HIGH: | 227p | LOW: 27p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 34p | NET CASH: | £90m | |
| Half-yearto 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | nil | -12.4 | -6.70 | nil |
| 2008 | 3.9 | -7.3 | -2.90 | nil |
| % change | - | - | - | - |
Click for a guide to the terms used in IC results tables
