Edison Report21 Aug 2021 00:11
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20 August 2021
Healthcare - Mcap £258m - Price 7.65p - Flash note
Sareum Holdings:
Fund raising to cushion pipeline risk
Sareum released a trading update on 19 August ahead of its full-year results (financial year end 30 June 2021) expected in October 2021. Final pre-clinical studies on the lead asset, TYK2/JAK1 inhibitor SDC-1801, are now expected to commence in Q421 (previously Q321) due to COVID-19 induced supply disruptions. The timeline for the clinical trial application (CTA) and Phase I clinical trials, however, remains unchanged (end Q421 and early 2022 respectively). Short-term liquidity issues have been alleviated following two subscriptions to high net-worth individuals raising £2.37m in June and a further c £2.18m in July and August 2021. Although increased R&D expenses widened the FY21 net loss to £1.6m (versus £0.96m in FY20), the cash balance has improved (£2.7m at the end of June 2021 versus £1.3m at the end of December 2020).
Year
end
Rev
(£m)
PBT
(£m)
EPS
(p)
DPS
(p)
P/E
(x)
Yield
(%)
06/17
0.0
0.4
0.02
0.0
0.0
N/A
06/18
0.0
(1.5)
(0.06)
0.0
0.0
N/A
06/19
0.0
(1.5)
(0.05)
0.0
0.0
N/A
06/20
0.04
(1.0)
(0.03)
0.0
0.0
N/A
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Business description
Sareum is a UK-based drug development company, specialising in small molecule kinase inhibitors. Its flagship programmes are its pre-clinical TYK2/JAK1 inhibitors, SDC-1801 for autoimmune diseases and SDC-1802 for cancer. SDC-1801 is undergoing advanced dose finding and toxicology studies with a target to file a CTA in end-2021. Other programmes include the CHK1 inhibitor SRA737, out licensed to Sierra Oncology (Sareum holds a 27.5% stake of the economics of the licence agreement) and the deprioritised FLT3+Aurora kinase.
Sareum Holdings is a research client of Edison Investment Research
Analyst
Jyoti Prakash, healthcare analyst
healthcare@edisongroup.com
+44 020 3077 5700