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Sareum Shares Edge 9.6% Higher on Upbeat Half-Year Results and Operations Update

Updated: 21 Jul 2021

Shares of Sareum Holdings Plc (LON: SAR) edged 9.61% higher after announcing the preliminary results for the six months ended 31 December 2020.

The biotech company made a loss of £550,000 during the period showing an improvement from the £610,000 loss reported in 2019, and had cash reserves of £1.3 million at the end of December compared to £1 million in 2019.

The report’s highlight was its operational highlights, including the £174,000 grant award from the UK Research & Innovation to investigate whether its SDC-1801 drug candidate could be used to treat severe cases of COVID-19.

Sareum said that initial results demonstrate that SDC-1801 reduces the levels of cytokines in human lungs infected with the SARS-CoV-2 virus. Preliminary results are expected in mid-2021.

The company also made significant progress testing its SDC-1801 drug on autoimmune diseases and designed a new formulation containing higher dosages found to be well-tolerated during clinical studies.

Sareum was granted a US patent (US 10,882,829) in January 2021 for its cancer immunotherapy drug SDC-1802 covering the US and all major territories.

The firm recently amended its 2016 licensing agreement signed with Sierra Oncology to develop SRA737: A Selective Chk1 inhibitor for solid cancers and expects the revised milestone schedules, including a $2 million payment to speed up the project.

Sareum also discontinued its partnership with its licensing partner for the FLT3+Aurora kinase inhibitor programme after failing to achieve the required bioavailability.

Dr Tim Mitchell, Sareum’s CEO, said:

“Sareum has continued to make good progress with the preclinical development of our proprietary dual TYK2/JAK1 inhibitor programmes. We are working hard to finalise the preclinical programme for SDC-1801, which is needed to complete our preparations for clinical trials. We expect to submit our exploratory CTA mid-year 2021, which if approved would allow the first human trials with SDC-1801 to commence, marking an important milestone for the Company.”

Sareum share price.

IG chart of Sareum share price 23-04-2021

Sareum shares rallied 9.61% to trade at 2.28p, rising from Thursday’s closing price of 2.08p.

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