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Sareum Share Price Surged 10.2% on European Patent Office Notice. Is It a Buy?

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Updated 15 Dec 2021
Biotech Lab

Key Points

  • Sareum received an “Intention to Grant” notice from the European Patent Office.
  • The patent office intends to grant Sareum’s patent application to protect its SDC-1802 molecule.
  • The company expects to complete the remaining steps that would lead to a full patent grant in the future.

The Sareum Holdings Plc (LON: SAR) share price surged 10.2% after revealing that it had received a notification from the European Patent Office regarding its patent application to protect its SDC-1802 molecule.

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The patent application number 17787186.0 is meant to protect the SDC-1802 molecule as a treatment option forTYK2-dependent T-cell acute lymphoblastic leukaemia (T-ALL), cancer that affects T lymphocyte white blood cells by inhibiting TYK2 kinase.

Sareum is not a profitable company yet but is working on several promising drug therapies, including its SDC-1801 molecule, which is targeted at treating severe cases of COVID-19 and could generate significant revenues for the biotech firm once commercialised.

The biotech firm has two US patents for its SDC-1802 drug molecule, and the addition of a European patent for the same molecule is a testament to the drug’s uniqueness.

Sareum expects to start clinical trials of its SDC-1801 drug treatment in H1 2022 after filing its Exploratory Clinical Trial Application (CTA) with the relevant health authorities.

Dr John Reader, Sareum’s Chief Scientific Officer, commented: “Our aim is to build broad, robust patent protection for our proprietary TYK2/JAK1 inhibitor candidates as they advance through their respective development programmes, to ensure that Sareum retains full value in these programmes as part of its business development discussions. We are pleased, therefore, to receive this ‘Intention to Grant’ notice from EPO around our patent application for SDC-1802 as a potential treatment for T-ALL. We expect to complete the formalities that would lead to a full grant of this patent in due course.”

Sareum is a biotech company with significant potential, making it attractive to investors in the biotech sector. However, it is yet to generate revenues, but this is likely to change next year.

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

Sareum share price.

IG chart of Sareum share price 15-12-2021
Source: IG

Sareum share price surged 10.2% to trade at 5.51p, rising from Tuesday’s closing price of 5.00p.

Should you invest in Sareum shares?

Sareum shares are traded on the London stock exchange’s AIM market (the alternative investment market), the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Sareum shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies.