Encouragement from interims

ReNeuron Group plc is an AIM listed biotechnology company developing allogeneic cell therapies. Its first product is the CTX neural stem cell therapy for the treatment of chronic stroke disability with results expected in H1 2021. Its second product is human retinal progenitor cells (hRPCs) which are being studied for RP in a Phase I/IIa study. 

The Group ended H1’20 with a cash balance of £21.3m (£26.4m at YE’19). Bearing in mind its two ongoing clinical programs, this is efficient budgeting. The announcement that both clinical programs are now being expanded, suggests that some cost acceleration in H2’20 is to be expected. ReNeuron’s net loss in H1’20 was £3.9m (£5.4m in H1’19) with R&D expenses of £9.2m, which increased from £7.5m in H1’19, rightly comprising the majority of the £11.8m total operational spend (£10.1m in H1’19).

Last week ReNeuron noted in the H1’19 announcement that their focus was being shared between the CTX neural stem cell product for chronic stroke in a pivotal Phase II study, and the Phase I/IIa study of their human retinal progenitor cell (hRPC) product for RP. With the startling, but early, data in RP patients, first announced in early 2019, and the deferral of the results in the CTX product until H1’21, the former second product in ReNeuron’s pipeline has been promoted to premier position in terms of investor attention, clinical trial results announcements and partnering potential.

After a year dominated by early positive clinical trial results for the hRPC product and an associated YTD 180% share price increase, investors may have forgotten that 2019 also saw the broad partnership signed with Fosun Pharma. That deal encompasses both hRPC and CTX products for the Chinese market worth up to £80m in upfront, and milestone payments plus attractive double-digit percentage royalties.