Renalytix Plc Share Price (RENX)

I have sent a message to the company and I have received very good reply from Peter DeNardo:

The Company really cannot provide guidance on number of tests over the next couple of years since that would essentially provide non-public revenue guidance. We are hopeful that under Howard Doran as heading up sales and hiring top-notch sales personnel that are performing that test sales will build over time. Certainly, a higher level of sales is needed to fund the business following the recent capital raises.

The company is exploring cardiovascular product application opportunities given that cardiovascular problems often go hand in hand with obesity, diabetes and chronic kidney disease.

The next update will be Renalytix’s third quarter earnings conference call on or about May 15 and we invite you to listen in to the related webcast for an update on a variety of subjects.

No worries Trickymatters. Goodness knows where the share price would be if the company was in debt and paying interest rates, sonia plus margin etc. They are cutting costs which is good - but you do have to ask why they left it to the brink - although whenever the company has required finance it has always been able to fund raise. The problem is that the bio-tech/diagnostics bull market has left the building....and with it a lot of confidence in the sector. As a rough guide to what shareholders would expect as a return - Renx has raised somewhere in the region of £160m in the last six years which has covered the overhead/loss to get it to where it is today. So I think that would be the starting point for a discussion on a sale. After that - its all about market potential - and as you point out the ckd drugs market is a multi billion dollar business. IF the company is sold - someone else needs to absorb losses for a while yet until there is sufficient commercial traction to start making a return - but the long term prize could be significant. ATB. SB

You are right SB. They avoided consolidating their losses with debt through the recent fundraise. Which will go on if they go it alone. As you and I have both observed there are mixed messages about whether they want a sale or whether they intend to sell the product themselves. Not their core skills so that's why I think they want to sell. Being deliberately ambiguous. Bit obvious to those interested parties but not without merit as a bargaining chip for a small company positioning themselves to engaging with pharma giants.

I won't reference 'debt' again. I meant they're spending more than they're making. Lazy. Apologies.

I won't cry if they get £1.00. Neither will new bond holders? Unless some of them have previously invested, as you have, at much higher levels.

But realistically they should get £300 million. A big pharma with a high industry profile, manufacturing core skills or good outsourcing relationships will make a billion a year from the US alone. Add to this additional sales from ckd drugs already worth tens of millions to both AZN and TF and it's a valuable investment.

It's important to the US health insurance industry to get this right too. Doesn't mean it's guaranteed.

We should have a quater update in a week or 2. We will see if we will receive any news. I don't think they will sell the company.

CVI/Heights Capital appear to be increasing the scale of their selling - both in US ADS and UK AIM. In a limited buyers market this is clearly having a negative impact on pricing and the largish (10%) daily swings. They are able to offset these sales through new shares being issued under their bond at the current rate of 4m per quarter - price dependent. SB