Administrators appointed over ReNeuron Group plc and its UK subsidiaries
ReNeuron Group plc, a biotech company specialising in stem cell therapies and exosome technologies, and its UK subsidiaries, has entered into administration.
Headquartered in Bridgend, Wales, ReNeuron has long been recognised for its ground breaking work in regenerative medicine. The company developed innovative treatments for conditions such as retinal diseases and central nervous system disorders. Its portfolio includes human neural stem cell therapies and an advanced exosome platform for drug delivery. However, despite its promising technology and clinical advancements, the company faced mounting financial difficulties driven by the high costs of research and development, prolonged clinical trial timelines, significant accrued liabilities and challenges in securing sustained funding. These pressures ultimately led the board to initiate administration proceedings.
Mark Smith and Stephen Cork of Cork Gully were formally appointed as administrators to guide the process and address the financial challenges facing ReNeuron. Their primary objective is to rescue ReNeuron Group plc as a going concern, securing its future and preserving value for stakeholders.
The AIM-listed parent company, ReNeuron Group plc, primarily relied on investor funding, while its subsidiary, ReNeuron Limited, held most of the tangible assets and intellectual property. The administrators’ strategy has focused on stabilising operations, preserving the value of these critical assets, and exploring opportunities for investment or sale to maximise outcomes for creditors.
Since their appointment, the administrators have made substantial progress in addressing these challenges. Early in the process, efforts were concentrated on securing investment to rescue the business as a going concern. Discussions were held with two potential cornerstone investors, but negotiations ultimately stalled due to disagreements over the preferred investment structure. Despite this, the administrators initially retained the company’s AIM listing to support investor outreach. However, following consultations with professional advisers and brokers, the listing was cancelled as it was no longer deemed commercially viable.
In addition to seeking investment, Cork Gully conducted an extensive marketing process to gauge interest in ReNeuron’s business and assets. While discussions with multiple parties showed early promise, no formal offers were made. Alongside these efforts, the administrators pursued recovery of outstanding book debts, with advanced negotiations leading to an agreement for a commercial settlement with a significant debtor.
Cost reduction has been another critical focus. The administrators have taken decisive steps to lower cash burn while preserving the company’s core assets. Non-critical supplier contracts were terminated, and cash flow was closely monitored to ensure the company remained operationally viable. Staff levels were gradually reduced to align with the company’s evolving needs, whilst key personnel, including the Chief Scientific Officer, were retained to support the administration process. At the end of the reporting period, key employees remained with the company to assist with critical tasks, including the planned exit from its current premises, which are no longer commercially viable for ongoing operations.
Throughout the administration, Cork Gully has engaged extensively with creditors, including the Welsh Government, which is the primary unsecured creditor. Negotiations with the Welsh Government have led to an agreement that supports the administrators’ objectives and enhances the prospects of achieving a rescue as a going concern.
Cork Gully remains focused on achieving the best possible outcome for all stakeholders and preserving ReNeuron’s legacy as an innovator in the biotech sector.
