The pandemic presents Sareum with an unexpected opportunity to test its lead TYK2 inhibitor, SDC-1801, in COVID-19. Such a move would require external funding, but this could accelerate clinical development timelines and catalyse a substantial increase in value for the company. Meanwhile, the recent £1m fundraising allows Sareum to advance SDC-1801 towards trials for mainstream autoimmune conditions… Read more
Sareum intends to make grant applications to explore the activity of SDC-1801 in COVID-19, where the aim would be to reduce the immune system over-reaction that has been seen in the later phase of the infection. If such grant applications are awarded, SDC-1801 could join a group of drugs – including a number of JAK inhibitors – that have been fast-tracked into trials for COVID-19 As a dual TYK2/JAK1 inhibitor, SDC-1801 could be more effective and/or better tolerated than these similar compounds in treating COVID-19.
Meanwhile, Sareum has raised £1m via an equity issue that allows it to advance SDC-1801 into clinical trials for autoimmune disease, consistent with its original business plan.
While QuotedData’s model does not ascribe a value to the COVID-19 opportunity at present, the estimate of the TYK2 assets’ current value has been increased to $30-50m. After modest assumptions for research and development (R&D) spending, QuotedData has assigned a fair value for Sareum in the £25–45m range (0.76–1.38p/share), with the interest in SRA-737 representing upside to the investment case that may be realised in a deal involving the licensee Sierra Oncology.
NB: Marten & Co was paid to produce this note on Sareum Holdings Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the
security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which
is authorised and regulated by the FCA. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of
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