ReNeuron well set after 'transformational' year

Stem cell treatment developer ReNeuron lost an increased £7.1m in a "transformational" year to end-March but still had plenty of cash in the bank as it moves into new cell manufacturing facility and files an investigational new drug (IND) application in the US early next year. The AIM-listed company held cash outflow from operating activities roughly flat at £6m over the period, leaving cash, cash equivalents and bank deposits at period end of £20.92m, thanks to the £23.44m net fundraising in August 2013.Chairman Bryan Morton said it was a transformational year for the business, both operationally and financially, as its lead stem cell therapy candidate for stroke entered Phase II clinical trials and the company began clinical development of a candidate for critical limb ischaemia. He also noted that in both cases, and earlier-than-planned, ReNeuron gained regulatory approval to use a cryopreserved variant of its lead 'CTX' stem cell product line, which gives the treatments the potential to have "significant commercial and competitive advantages". He confirmed the move to new cell manufacturing facility in South Wales early next year was on track, "which we believe will become a major element of ReNeuron's overall value proposition". Morton added: "We are also on track to file an IND application in the US early next year seeking Food and Drug Administration approval to start a Phase I/II clinical trial of our retinitis pigmentosa cell therapy, and we are greatly encouraged by the progress and potential of our emerging CTX cell-derived exosome therapeutic platform. "These developments represent significant steps to building real future value in the business and the £34.6m equity and grant financing completed in the year provides us with a robust balance sheet to reach further key clinical milestones in the business. We look forward to the future with great confidence."Shares in ReNeuron were up 3.97% to 3.02p by 13:40 on Wednesday.OH