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Sareum Share Price Fell 7.61% As Its Annual Loss Surged on Higher Research Costs

Updated: 25 Oct 2021

Sareum Holdings Plc (LON: SAR) share price fell 7.61% after its earnings results for the fiscal year ended 30 June 2021 showed its losses grew to £1.5 million compared to £0.99 million recorded in 2020.

The company did not generate any revenues during the past year but received £0.171 million in operating income from the previous year.

The specialist drug development company, said that it had made significant progress in advancing SDC-1801 as a treatment for severe COVID-19 and autoimmune diseases since it was about to conclude the preclinical stages.

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Sareum is currently developing capsule-based treatment formulations, which are likely to be of higher value than oral drugs and suspensions. This process is expected to be completed in H1 2022, after which the firm could start clinical trials.

The biotech firm intends to file its Exploratory Clinical Trial Application (CTA) in mid-2022 after successfully developing the capsule-based drug and completing its toxicity and safety studies.

Sareum also revealed that it had won two US patents for its SDC-1802 cancer immunotherapy treatment. In addition, the firm is conducting translational studies to define the optimal applications to cancers and complete the toxicology and manufacturing studies.

Investors seemed largely unimpressed by today’s announcement due to the wider losses and the fact that the company was not anywhere near commercialising its cancer and COVID-19 treatments.

It appears investors might have to wait longer before the company can start generating revenues from the commercialisation of its drug treatments.

Sareum continues to raise money to fund its operations, having raised £2.37 million via two subscriptions in June before expenses raising its total cash at bank to £2.7 million on 30 June 2021, compared to £1.3 million on 31 December 2020.

The company raised an additional £2.18 million via share subscriptions from two high net worth investors along with exercisable warrants bringing its total cash at the bank to £4.4million as of 30 September 2021.

From a technical perspective, Sareum shares are trading above the crucial 5.74p support level, implying a bullish outlook, but the shares have been trading sideways since August.

Investors and traders alike should wait for a break out of the consolidation range before opening new positions since we could get a break in either direction.

*This is not investment advice. Always do your due diligence before making investment decisions.

Sareum share price.

IG chart of Sareum share price 25-10-2021
Source: IG

Sareum share price fell 7.61% to trade at 6.19p, falling from Friday’s closing price of 6.70p.

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