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ReNeuron Group - Full steam ahead with CustomEx

ReNeuron’s FY23 results provide a recap of financial and operational highlights from the period. Following the restructuring announcement in January 2023, the company’s focus rests on its proprietary stem cell-derived exosome platform, CustomEx. In vivo animal studies to validate the platform’s capabilities are ongoing, and ReNeuron plans to release readout data in H2 CY23, which we anticipate could be a key catalyst and generate traction for partnerships. Due to the macroeconomic environment, management is closely monitoring and managing expenses. As of 31 March 2023, the company’s cash balance was £7.2m, which management expects should fund operations into July 2024. While FY23 operating expenses were lower year-on-year and we have reduced future opex projections given the restructuring and guidance, we have also taken a more conservative approach to the long-term assumptions of potential licensing deals to reflect the current macroeconomic (funding and activity) environment. These adjustments and rolling our model forward result in a revised valuation of £29.3m or 51p/share (previously £44.2m or 77p).