Final results from ReNeuron (RENE) are as expected from an early-stage biotech - not terribly informative. Looking beyond the numbers, the stem cell specialist has had a good year. The big news will come towards the end of 2016 when early clinical data will be published from its therapy for stroke-induced disability, CTX. If all goes to plan the group will be able to start the final phase of drug development in the first half of 2017.
CTX is also now being trialled as a treatment for critical limb ischaemia - a severe obstruction in the arteries. Meanwhile, ReNeuron has also launched its first US clinical trial, regarding its therapy for retinitis pigmentosa, a genetic condition that can lead to blindness.
The share price has struggled recently, as sentiment towards the biotech market turned sour last summer and more recently in the wake of the Brexit vote. However, a placing that raised £68m in August 2015 leaves ReNeuron well funded to take all its programmes into at least mid-phase clinical development.
Broker N+1 Singer expects statutory pre-tax losses to widen to £24.8m for the year to March 2017 as expenditure in clinical trials increases, giving an adjusted loss per share of 0.7p.
RENEURON (RENE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2.6p | MARKET VALUE: | £83m | |
| TOUCH: | 2.5-2.8p | 12-MONTH HIGH: | 6.3p | LOW: 2.4p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 2.14p | NET CASH: | £65.7m | |
| Year to 31 Mar | Turnover (£m)* | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 0.04 | -6.8 | -1.0 | nil |
| 2013 | 0.02 | -7.1 | -0.8 | nil |
| 2014 | 0.02 | -7.8 | -0.5 | nil |
| 2015 | 0.03 | -10.3 | -0.5 | nil |
| 2016 | 0.03 | -12.8 | -0.4 | nil |
| % change | -3 | - | - | - |
*Excludes revenue from grants | ||||
