ReNeuron surges on stem cell agreement with US pharma group
Stem cell therapeutics specialist ReNeuron has signed an exclusivity agreement with a US-based speciality pharmaceutical company that could potentially lead to an out-licensing of the AIM-listed company's hRPC retinal technology and therapeutic programmes.
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In exchange for granting a three-month exclusivity period, ReNeuron will receive a non-refundable $2.5m cash payment from the unnamed US firm, with a further $2.5m set to come its way upon the completion of certain due diligence activities.
ReNeuron intends to put both cash payments towards its ongoing working capital requirements.
The AIM-listed group hopes to sign a definitive out-licensing agreement with its mystery partner later in the year.
ReNeuron said the agreement would be made up of a worldwide licence for the retinal stem cell technology, excluding China, with success-based development milestone payments and royalty payments on eventual in-market sales and believes its potential partner has the financial capacity as well as the clinical and commercial competencies necessary to accelerate and maximise the value of its hRPC technology.
Chief executive Olav Hellebø said, "We are very pleased to be entering a period of further discussion and due diligence on an exclusive basis with one of these parties and hope to announce an agreement later this year."
"It is highly encouraging that our technologies and therapeutic programmes are attracting increasing interest from commercial third parties, reflecting the positive progress these programmes are making through pre-clinical and clinical development and their potential to address major unmet medical needs."
As of 0920 BST, ReNeuron shares had surged 20.72% to 97.78p.