Edison Investment Research - ReNeuron Group PLC (RQE1) Initiation: Renewed confidence through robust approach

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Edison Investment Research

Initiation: Renewed confidence through robust approach

ReNeuron operates off solid fundamentals as it seeks to advance its novel stem cell technology. Last yearâ€™s Â£25.3m fundraise coupled with a Â£7.8m grant from the Welsh government to build a new manufacturing facility for its neural CTX stem cells (to complete Q215) allows management to guide ReNeuron to several value inflection points. Clinical data from ReN001 for stroke (Phase II â€“ robust trial design) and ReN009 for critical limb ischaemia (Phase I) are expected in 2015. We value ReNeuron at Â£125m, or 7p per share, ahead of these catalysts.

29/09/2014 16 EN

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ReNeuron Group PLC

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GB00B0DZML60 United Kingdom

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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ReNeuron Group - Biblical aspirations

ReNeuronâ€™s interim results for the six months to 30 September 2017 showcased a crucial juncture in the companyâ€™s history. With the first of two US placebo-controlled, late-stage studies in chronic stroke starting in 2018 and dosing ongoing in the US Phase I/II study in retinitis pigmentosa, ReNeuronâ€™s stem cell therapies are aimed at helping the disabled walk and the blind see. ReNeuron reported a loss of Â£9.6m for the six months (vs Â£7.7m in H117). In 2018 ReNeuronâ€™s profile will increase further as it conducts two clinical studies and opens an operational base in the US.

December 21, 2017 December 21, 2017 5 EN

Edison Investment Research

Milestones expected as pipeline progresses

The highlight of FY17 was positive Phase II efficacy data from ReNeuron’s PISCES II clinical trial. As this and its other clinical programmes in ophthalmology and its earlier stage exosome platform progress, ReNeuron is entering a period of potentially significant milestones over the next 12 to 18 months. We maintain our valuation of £291m, adjusting for FY17 cash and rolling the model forward, which is offset by moving out the clinical timeline for the Phase III pivotal trial in stroke, now expected to start in early 2018 (vs H217).

July 6, 2017 July 6, 2017 3 EN

Edison Investment Research

Global clinical pipeline strategy update

ReNeuron continues to prepare for its Phase III chronic stroke study (due to start in H217) and has indicated that it is making progress with the US/EU regulatory authorities. It intends to submit an IND in the US in Q217 and shortly after in the EU. ReNeuron also announced that it now plans to expand its ongoing Phase I/II retinitis pigmentosa (hRP cells) study to 20 patients in Phase II and commence a Phase II study in a new indication: cone-rod dystrophy (CRD). As a result, it will not continue development of CTX in critical limb ischaemia (CLI). We maintain our rNPV at £291m.

May 2, 2017 May 2, 2017 5 EN

Norcros - Sale of Johnson Tiles UK agreed

Norcros’s disposal of Johnson Tiles is the latest strategic activity taken by management to better allocate capital to fit with priorities. Last year it closed its UK adhesives operation. Norcros has a compelling investment case, where its new product development initiatives, market positioning and self-help initiatives allow it to take market share in both the UK and South Africa. Its rating is low at 6.0x FY24e P/E, which is attractive, especially when compared to its yield of 5.4% on its well-covered dividend. We retain our estimates and value the shares at 246p, implying c 30% upside.

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Initiation: Renewed confidence through robust approach

ReNeuron Group - Biblical aspirations

Milestones expected as pipeline progresses

Global clinical pipeline strategy update

Norcros - Sale of Johnson Tiles UK agreed

Henderson Far East Income - Repositioning to raise total returns

Freelancer - AI to drive return to growth

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