Analysts see 2007 as key for ReGen Thera

Edison Investment Research say that 2007 looks set to be a pivotal year for UK-based biotechnology group ReGen Therapeutics, a firm which is primarily focused on the development of treatments for neurodegenerative disorders. The analysts issued a risk-adjusted net present value (rNPV) for ReGen of L50.0 million ($96.6 million), which represents a significant multiple of the company's current L7.0 million enterprise value.

EIR explained that this opinion is based on two key performance drivers, namely: the anticipated positive results of a Phase IIa trial of zolpidem, an off-patent sedative that was formally marketed by French drugmaker Sanofi-Aventis under the trade names Stilnox and Ambien, which is being assessed as a therapy for neurological dormancy; and the proposed US launch of ReGen's pro-cognitive nutraceutical product Colostrinin, a proline-rich polypeptide complex derived from bovine colostrum, scheduled to take place October this year through the company's US partner Metagenics. EIR added that ReGen's early-stage research into some of the constituent peptides of Colostrinin also represents a significant R&D asset for the future.

The analysts injected a note of caution, however, commenting that, its deal with Metagenics aside, ReGen has encountered significant delays in commercializing the agent, in part because of financing constraints. They added that, in the absence of any upfront payment in connection with potential licensing deals, they expect the company to carry out further fundraising to continue operations through to breakeven, which they forecast will occur at the end of the 2008 financial year.