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It comes down to whether you think they'll get licencing deals for exosomes or not. If you do, then it's extremely cheap and has the potential to make enormous gains from these levels. On that basis, you just have to grin, bare it and wait until that day comes, because I can't see anything else shifting the price properly until then.
If you don't think they'll sign licensing deals, then you absolutely should not be invested, as your patience will only therefore be rewarded with a further gradual decline.
My perception of the company was badly damaged by what happened with hRPC, but Ross pulling the plug on it (as opposed to running a further phase 2) was absolutely the right thing to do. They (previous senior management) took a chance with increasing the dose and modifying the bleb placement, and it absolutely did not work as expected. The cash drain of waiting any longer or trying to do another phase 2 would have decimated any residual shareholder value.
Ross is focused on monitising and valuing as much of the IP and expertise as quickly as possible. He's on record as saying they are going to raise 'dosh', through licensing deals and not further equity raises. His record for company turnarounds is exemplary, and on this basis I'm willing to trust what he says and have invested further.
Let's hope he's rights, as this company cannot now afford any more false dawns, and neither can I.
The actual full quote from Ross, with reference to the outlook for the coming year:
"Let me make it clear; we're going to generate data, we're going to do deals, and we're going to raise dosh. And I say that - in this particular market, raising money is not a particularly easy task - so we're looking at collaborations producing non-dilutive funding".
Lets hope he's good to his word, because that's about as unequivocal as it gets.
Comment about internal and external ceo recruitment process was noteworthy I thought. Perhaps Ross (and the board) have been impressed by what they've seen from Catherine Isted so far and looking at the possibility of moving her from cfo to ceo?
She certainly comes across very well and has the business focused mind (and contacts) that has been so badly absent in this company for a long while now.
Great presentation and confirmation of what sajy has said about the intention of directors to buy once out of closed period.
Ross is a breath of fresh air. Need to watch the presentation again, plenty to unpack. The focus is on generating shareholder value and the strategy is now clear, coherent and absolutely achievable.
One comment stood out which I shall attempt to paraphrase, 'we're going to generate dosh and it won't be through dilution'.
Yes Clive, I think you make an important point. Its a considerable investment from fosun (in relation to developing a manufacturing plant within the next 12 months) and really validates where they see CTX going in the future.
The headline figures for Rene aren't exciting at this stage, but the story developing is very interesting.
It's just a shame it's taken so long to get to this stage, as the fosun deal did appear to stagnate for a period. The fact it is absolutely still moving forward is fantastic to see.
Good to see the additional terms finalised at last this morning. The figures don't exactly blow the doors off, but do represent a shift towards finally monitizing the IP, as the business begins it's evolution into a proper commercial entity.
Hopefully further deals can follow and we can secure regular income that underpins the value of the business. The results and analyst presentation should provide more colour next week.
The company had been run like a well funded university experiment that had got out of hand. There's proper business people running it now and I expect them to finally deliver on the promise of shareholder returns. From these levels the upside could be remarkable. That said, it's a disgrace that it was ever allowed to reach these levels in the first place.
Well, they announced it via RNS saying negotiations relating to further terms are ongoing...
'Additional agreement with Fosun Pharma for CTX
Progression with Fosun Pharma underscores commitment to CTX stroke disability programme
ReNeuron Group plc (AIM: RENE), a UK-based leader in Stem cell and Exosome Technologies, announces that following on from the original Fosun Pharma ("Fosun") licensing agreement announced on 9 April 2019, the Company has signed an additional agreement with Fosun, on 5 January 2022, setting out the first steps in the potential technology transfer of the CTX drug product for the stroke disability programme.
The agreement allows for £320,000 to be invoiced on signing with further payments expected, based on services and CTX cell bank vials to be supplied by ReNeuron in the future, although these are contingent on signing a supplemental payment terms agreement which is currently under discussion.
ReNeuron will update the market further once agreement on these terms have been reached.
Olav Hellebø, Chief Executive Officer, commented: "We are pleased to announce progress in the technology transfer of the CTX drug product to Fosun and believe this highlights the commitment Fosun has to the programme in Greater China."'
Due update on fosun terms, so that's the next thing on the horizon. Its taken a long time to negotiate though, so perhaps we may see something more left field announced? Perhaps Fosun are seeking a further deal for exosomes as well? Safe to say we are due some good news and positive momentum for a change.
Difficult to say if it's turned a corner. The decline has been frankly shocking.
If/when any director buys come it will be interesting - hopefully not just token gestures. The caliber of the ceo replacement should also be telling.
I'm still in for a lot of shares here, but my enthusiasm has certainly been dented and the board need to provide confidence that the exosomes platform is going to transform the company, because we are firmly staring at last chance saloon otherwise.
Thanks for the observations Clive/sajy. I'm conflicted about whether I should buy more. Part of me thinks 'how can it possibly get any lower than it is now?'. The other part of me is thinking 'it could get much lower, along with all other stocks, depending on how things escalate with Russia/Ukraine'.
Think I'm just going to hold for now. Nursing heavy losses already, and don't have high expectations for a positive resolution in Ukraine unfortunately.
Just been having a look and he actually was in SNG as well, sold out April 2020 for a tidy profit. Although it would be worth significantly more if he'd held them.
Hopefully he can have similar success with Rene.
Griffiths is/was heavy in silence therapeutics (sln), which he's done extremely well with. Synairgen (sng) has also multibagged in that time, but Griffiths hasn't been involved there, as far as I'm aware.
Either way, Griffiths going big here and Ross being chairman (and basically now taking the reigns after Olav 'resigning') is a tried and tested formula. Doesn't mean success is guaranteed, but the signs are very good, despite the still lowly share price.
Get the feeling Griffiths will end up with over 20% stake and we'll see Ross taking a fair chunk also. Hope so.
From the Ian Ross reign at Redx...
"Redx Pharma PLC (LON:REDX) may turn out to be a turnaround story that will be studied in finance textbooks in the future."
https://www.proactiveinvestors.co.uk/companies/news/926712/redx-pharma-the-three-year-journey-from-administration-to-ftse-100-deal-926712.html
It's been clear for a while that the power has shifted within Rene, and I think the announcement today demonstrates this.
Hopefully Ross can replicate the success he achieved in very similar circumstances at Redx a few years ago and appoint a heavy hitter when the time is right...
https://www.proactiveinvestors.co.uk/companies/news/195633/redx-pharma-shares-soar-48-after-it-recruits-heavy-hitter-from-drugs-major-astrazeneca-195633.html