ReNeuron to raise £4.7m in new private placing to advance stem-cell therapies into clinical trials

ReNeuron Group (LSE: RENE) is raising approximately £4.7m from existing and new investors through a placing of 94.4m new ordinary shares at 5p per share. The proceeds raised will be used to fund a pioneering clinical trial of the ReN001 stem-cell therapy for stroke patients, and to fund ongoing development of ReN009, which is targeting clinical trials in 2011.

Joint brokers Daniel Stewart and Matrix Corporate Capital are conducting the placing on behalf of the company.

The placing is expected to take place in two separate tranches, to enable certain placees to take advantage of Venture Capital Trust and Enterprise Investment Scheme tax treatment. The first tranche of 16.8m shares is expected close on 18 March 2010, with the larger second tranche of 77.6m shares expected to close on 19 March 2010.

ReN001 is the company’s most advanced therapy. Earlier this month a ReN001 proposed in-man clinical trial received full and final approval from the UK Gene Therapy Advisory Committee (GTAC). The award marked the final regulatory step in the approval process.

ReNeuron expects to begin patient recruitment in April of this year for a Phase I trial which will be a world-first, using expanded neural stem cells in this indication. The ReN001 stem cell therapy will be administered to stroke patients who have been left disabled by an ischaemic stroke, the most common form of the condition. 

The trial will primarily test the safety profile of ReN001 for a range of cell doses, but a number of efficacy measures will also be evaluated over the course of the trial. Patients will be monitored for two years, with longer term follow-up procedures in place thereafter. 

Among the company’s other treatments, ReNeuron’s ReN009 stem cell therapy for the treatment of peripheral arterial disease is planned to begin clinical trials in 2011.
Daniel Steward issued a flash note on ReNeuron this morning, noting the potential for ReN001 to be a “blockbuster treatment” as there is currently no medical cure for stroke disability.  Analysts at Daniel Stewart have set a target price of 13 pence.

http://www.proactiveinvestors.co.uk/companies/news/13602/reneuron-to-raise-47m-in-new-private-placing-to-advance-stem-cell-therapies-into-clinical-trials-13602.html