Stem-cell-derived exosome technology specialist ReNeuron Group reported first-half revenue of £0.44m on Friday, up from £0.06m year-on-year, related to income from partner-funded development activities and royalty income.
The AIM-traded firm said it incurred operating costs of £4.7m for the six months ended 30 September, down from £6.1m in the same period last year.
It said that was primarily the result of a reduction in clinical trial-related costs following its strategic review in January, partly offset by the additional investment made in the exosome technology platform.
The company’s loss for the period totalled £3.2m, narrowing from £5.2m, driven by lower costs, increased revenue, and foreign exchange gains.
Net cash used in operating activities totalled £4.3m, compared to £4.6m in the first half of the 2022 financial year.
Cash used was higher than the loss for the period, which the board said was explained by changes in working capital and capital investment made to support exosome platform development.
The firm said cash, cash equivalents and bank deposits at period end on 30 September totalled £10.5m, down from £14.5m at the end of March.
“The last six months have been a time of transition as the executive team has focused on accelerating the development of ‘CustomEx’, our exosome drug delivery platform,” said chief executive officer Catherine Isted.
“The data produced to validate the platform, following Dr Corteling’s return in March of this year, has enabled us to highlight the potential of CustomEx in comparison to the conventional approach of our competitors.
“Following my appointment as CEO in September, I have further strengthened the executive team with the recent appointment of Simon Dew as chief business officer.”
Isted said that, in light of current unfavourable equity capital markets, it had not been possible to complete an equity raise at the present time.
“However, through a review of the cost base and planned initiatives, savings have been identified in order to extend our cash runway to ensure the continued development of our technology platform and maximise partnering opportunities and thereby deliver the value that I believe our customisable and targeted delivery platform should command.”
At 1219 GMT, shares in ReNeuron Group were down 30.02% at 15.74p.