The theme round right here continues on — Reneo Prescription drugs (RPHM) (~$45MM market cap) is one other damaged biotech, this week the firm introduced their Part 2 examine of Mavodelpar in grownup sufferers with mitochondrial myopathies didn’t meet its main or secondary efficacy endpoints. The inventory responded by crashing 80+% as this can be a one shot on objective biotech with out a lot of a remaining pipeline. Reneo is now buying and selling effectively under liquidation worth, whereas the corporate has but to announce a strategic assessment, it does not have many choices left, I might count on the official strategic alternate options declaration quickly.
That is one other pretty clear steadiness sheet, Reneo disclosed that present money is roughly $100MM as of yesterday, subtracting out their 9/30 liabilities, severance funds and an estimate of money burn/liquidation prices (they solely have roughly 12 staff following their discount in workforce), I get an NAV or liquidation worth of ~$2/share. The corporate did put in place an ATM in November, it does not seem they’ve used it primarily based on present money and historic burn charge, however the share rely above may be value confirming.
I might see slightly bump in worth if and when the corporate does formally announce strategic alternate options after which a second on some conclusion, whether or not a deal or liquidation of Reneo.
Disclosure: I personal shares of RPHM
