As is usually the case with small biotech companies, it's rarely about the numbers come results time. For cell-based therapeutics developer ReNeuron (RENE), this is particularly true. Losses escalated during the opening six months of the year, as did the amount of cash spent, but the group's clinical progress is clear.
Alongside half-year numbers, the group announced positive results from a phase two trial of its CTX cell therapy drug for patients suffering from disability following a stroke. In total, 15 out of 21 patients showed a clinically significant improvement against at least one industry-based measure of disability by the end of the trial. ReNeuron will now apply to both US and European regulatory authorities to commence a larger, final phase trial towards the middle of next year, according to chief executive Olav Hellebø. That's likely to be expensive, but Mr Hellebø believes the company's financials "have never been better" and doesn't see the group tapping investors for more funds in the near term.
Don't expect much movement in the top line just yet: analysts at Stifel expect full-year sales to be flat at £0.6m. The group is still making losses, expected to be at 79.4p per share for the year ending March 2017 (from a 43.5p loss in FY2016).
| RENEURON (RENE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2.88p | MARKET VALUE: | £91m | |
| TOUCH: | 2.75-3p | 12-MONTH HIGH: | 3.75p | LOW: 2.3p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 1.9p | NET CASH: | £60m | |
| Half-year to 30 Sep | Turnover (£'000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 11 | -5.2 | -0.2 | nil |
| 2016 | 22 | -8.6 | -0.2 | nil |
| % change | +100 | - | - | - |
