Signs retinal stem cell exclusivity agreement

RNS Number : 2341U

ReNeuron Group plc

11 July 2018

 

 

AIM: RENE

11 July 2018

ReNeuron Group plc

("ReNeuron" or the "Company")

Signs retinal stem cell exclusivity agreement

ReNeuron Group plc (AIM: RENE), a UK-based global leader in the development of cell-based therapeutics, is pleased to announce that it has signed an exclusivity agreement with a US-based specialty pharmaceutical company in connection with the potential out-licensing of ReNeuron's hRPC retinal stem cell technology and therapeutic programmes.

In exchange for granting a three-month exclusivity period, ReNeuron will receive a non-refundable $2.5 million cash payment from the US-based company.  A further $2.5 million is payable to ReNeuron subject to the completion of certain due diligence activities during the exclusivity period.  These cash payments will contribute to the Company's ongoing working capital requirements.

ReNeuron aims to sign a definitive out-licensing agreement with the US-based company later this year. The agreement is envisaged to comprise a worldwide licence, excluding China, with success-based development milestone payments and royalty payments on eventual in-market sales.  ReNeuron believes the potential US partner has the financial capacity as well as the clinical and commercial competencies necessary to accelerate and maximise the value of the Company's hRPC technology.

ReNeuron is also pleased to report that it is in active commercial discussions with other third parties relating to its other platform technologies and therapeutic programmes with a view to signing collaboration and/or out-licensing deals in due course. 

Commenting on the agreement, Olav Hellebø, Chief Executive Officer of ReNeuron, said:

"ReNeuron has been actively engaged in discussions with various parties during the past few months regarding the potential partnering of our hRPC retinal stem cell technology and programmes.  We are very pleased to be entering a period of further discussion and due diligence on an exclusive basis with one of these parties and hope to announce an agreement later this year.  In addition to this, we are in detailed discussions with a number of companies in connection with our other programmes.

"It is highly encouraging that our technologies and therapeutic programmes are attracting increasing interest from commercial third parties, reflecting the positive progress these programmes are making through pre-clinical and clinical development and their potential to address major unmet medical needs."

ENDS

Enquiries:

ReNeuron	[phone]
Olav Hellebø , Chief Executive Officer
Michael Hunt, Chief Financial Officer
Buchanan	[phone]
Mark Court, Sophie Wills, Tilly Abraham
Stifel Nicolaus Europe Limited Jonathan Senior, Stewart Wallace, Ben Maddison (NOMAD and Joint Broker)	[phone]
N+1 Singer Advisory LLP Mark Taylor (Joint Broker)	[phone]

This announcement contains inside information. The person responsible for arranging for the release of this announcement on behalf of the Company is Olav Hellebø, Chief Executive Officer.

About ReNeuron

ReNeuron is a leading, clinical-stage cell therapy development company.  Based in the UK, its primary objective is the development of novel cell-based therapies targeting areas of significant unmet or poorly met medical need.  

ReNeuron has used its unique stem cell technologies to develop cell-based therapies for significant disease conditions where the cells can be readily administered "off-the-shelf" to any eligible patient without the need for additional immunosuppressive drug treatments.  The Company has therapeutic candidates in clinical development for disability as a result of stroke and for the blindness-causing disease, retinitis pigmentosa.   

ReNeuron is also advancing its proprietary exosome technology platform as a potential new nanomedicine targeting cancer and as a potential delivery system for drugs that would otherwise be unable to reach their site of action.

ReNeuron's shares are traded on the London AIM market under the symbol RENE.L.  Further information on ReNeuron and its products can be found at www.reneuron.com.

This announcement contains forward-looking statements with respect to the financial condition, results of operations and business achievements/performance of ReNeuron and certain of the plans and objectives of management of ReNeuron with respect thereto. These statements may generally, but not always, be identified by the use of words such as "should", "expects", "estimates", "believes" or similar expressions. This announcement also contains forward-looking statements attributed to certain third parties relating to their estimates regarding the growth of markets and demand for products. By their nature, forward-looking statements involve risk and uncertainty because they reflect ReNeuron's current expectations and assumptions as to future events and circumstances that may not prove accurate.  A number of factors could cause ReNeuron's actual financial condition, results of operations and business achievements/performance to differ materially from the estimates made or implied in such forward-looking statements and, accordingly, reliance should not be placed on such statements. 

 

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