Shares in Sareum Holdings PLC (AIM:SAR) jumped 24% to 17.4p after the Cambridge-based biotech reassured investors that it has enough cash to advance its lead autoimmune disease drug, SDC-1801, into phase II trials.
The update accompanied full-year results showing cash reserves of £3.5 million at 30 June, up from £1.5 million a year earlier, following several successful fundraisings.
Sareum said its 16-week toxicology study for SDC-1801, a dual TYK2/JAK1 inhibitor targeting psoriasis and other autoimmune conditions, would be restarted soon after unexpected findings were found to be unrelated to the drug.
Positive phase I results earlier this year showed the treatment to be safe, well-tolerated and suitable for once-daily dosing.
Chairman, Dr Stephen Parker, said the company remains “confident in SDC-1801” and is “firmly focused on completing the phase II-enabling package.”
Sareum also reported progress across its wider pipeline, including a neuroscience collaboration with Receptor.AI and a newly acquired licence for cancer drug SRA737 on improved terms.
The upbeat tone on cash and strategy helped restore investor confidence after a volatile year for the AIM-listed company, which remains focused on autoimmune and oncology treatments.