LONDON (Alliance News) - Stem-cell company ReNeuron Group PLC on Friday posted a widened pretax loss for its 2015 financial year due to rises in research and development and administrative costs, but said it has placed shares to raise GBP68.4 million to back its therapeutic programmes.
The company said its pretax loss in the year to the end of March was GBP10.3 million, widened from GBP7.8 million a year earlier, as its research and development costs rose to GBP7.3 million,, from GBP5.8 million and as administrative costs rose to GBP3.7 million from GBP2.8 million. Revenue also declined slightly, with grant income down to GBP519,000 from GBP662,000.
ReNeuron said it has phase one clinical trials ongoing for its stem cell therapy candidates for stroke and critical limb ischaemia treatment, with both set to move to phase two during 2016.
"During the year under review, we have commenced dosing of patients in two new clinical trials in stroke disability and critical limb ischaemia, representing further significant milestones in the clinical development of ReNeuron's CTX cell therapy candidates. Importantly, we have since gained regulatory approval to commence our first clinical trial in the US, a Phase I/II clinical trial of our hRPC cell therapy candidate for retinitis pigmentosa. We are also encouraged by the early pre-clinical data generated with our exosome nanomedicine platform, targeting cancer," said Chief Executive Olav Hellebø.
In a separate statement, the company said it has conditionally raise GBP68.4 million via the placing of 1.37 billion shares at 5 pence per share. Shares in the company closed at 4.875 pence on Thursday.
The company said the proceeds will be used to provide working capital for core cell-based therapeutic programmes and new exosome nanomedicine programme in oncology through to the first half of 2019.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Reneuron (RENE)