Guildford, UK, 24 March 2011: ReNeuron Group plc (LSE: RENE.L) today welcomes the significant measures announced by the Chancellor of the Exchequer in yesterday’s Budget and Growth Review in support of the UK life sciences sector.
As a leading, development stage stem cell therapy business quoted on the AIM Market, ReNeuron expects to benefit significantly, both in the short and longer term, from the following provisions announced in the Budget and Growth Review:
· the proposed increases in the SME rates of relief for R&D Tax Credits and the proposed removal of the PAYE/NI cap on the amount of credit that can be claimed;
· the proposed increase in the rate of Enterprise Investment Scheme (EIS) income tax relief and the proposed increases in qualifying company and annual investment limits for EIS and Venture Capital Trust (VCT) investments;
· the proposed establishment of a cell therapy and advanced therapeutics Technology and Innovation Centre in the UK to assist in the translation of research in this area into treatments for patients;
· the proposed improvements and simplification of the governance and regulation of medical research in the UK to shorten the time to approval for clinical trials; and
· the report by the NHS Chief Executive on how the adoption and diffusion of medical innovations can be accelerated across the NHS.
Michael Hunt, Chief Executive Officer of ReNeuron, said:
“ReNeuron already benefits significantly from the existing R&D Tax Credit and EIS and VCT investment schemes, in terms of the tax reliefs offered through these schemes to both the Company and its qualifying investors. So the proposed enhancements to these schemes are to be greatly welcomed. The further provisions announced yesterday in support of cell therapy research and improvements to the regulatory system in the UK are also important and welcome developments from which we expect ReNeuron to directly benefit in due course.”
Michael Hunt, Chief Executive Officer – ReNeuron +44 (0) 1483 302560
Dr John Sinden, Chief Scientific Officer – ReNeuron
Lisa Baderoon, Mark Court, Isabel Podda +44 (0) 20 7466 5000
Antony Legge, Oliver Rigby +44 (0) 20 7776 6550
Daniel Stewart & Company plc
James Gallagher, Tim Graham +44 (0) 20 3206 7000
Matrix Corporate Capital LLP
ReNeuron is a leading, clinical-stage stem cell business. Its primary objective is the development of novel stem cell therapies targeting areas of significant unmet or poorly met medical need.
ReNeuron has used its unique stem cell technologies to develop cell-based therapies for significant disease conditions where the cells can be readily administered “off-the-shelf” to any eligible patient without the need for additional immunosuppressive drug treatments. ReNeuron’s lead candidate is its ReN001 stem cell therapy for the treatment of patients left disabled by the effects of a stroke. This therapy is currently in early clinical development. ReNeuron’s ReN009 stem cell therapy is being developed as a treatment for periph eral arterial disease, a serious and common side-effect of diabetes. The Company is also developing stem cell therapies for other conditions such as blindness-causing diseases of the retina.
ReNeuron has also developed a range of stem cell lines for non-therapeutic applications – its ReNcell® products for use in academic and commercial research. The Company’s ReNcell®CX and ReNcell®VM neural cell lines are marketed worldwide under license by USA-based Millipore Corporation.
ReNeuron’s shares are traded on the London AIM market under the symbol RENE.L. Further information on ReNeuron and its products can be found at www.reneuron.com.
This announcement contains forward-looking statements with respect to the financial condition, results of operations and business achievements/performance of ReNeuron and certain of the plans and objectives of management of ReNeuron with respect thereto. These statements may generally, but not always, be identified by the use of words such as “should”, “expects”, “estimates”, “believes” or similar expressions. This announcement also contains forward-looking statements attributed to certain third parties relating to their estimates regarding the growth of markets and demand for products. By their nature, forward-looking statements involve risk and uncertainty because they reflect ReNeuron’s current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of factors could cause ReNeuron’s actual financial condition, results of operations and business achievements/performance to differ materially from the estimates made or implied in such forward-looking statements and, accordingly, reliance should not be placed on such statements.