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Stem cell specialist ReNeuron (LON:RENE) and Australia-based Benitec Biopharma are extending their research collaboration.
It the follows “positive results” from studies that found that ReNeuron generated exosomes were potentially an effective delivery system for Benitec's gene silencing technology.
Exosomes are tiny cell parts known as vesicles that have most recently used by scientists to repair the heart of mouse, although they are also thought to be integral to cancer spread.
Their deployment as a delivery mechanism is new to the world of medicine.
ReNeuron chief executive Olav Hellebø said: "We are increasingly excited by the potential of our exosome platform, most particularly as a potential new therapeutic approach targeting cancer.
“The early data we have generated indicates that our CTX-derived exosomes may become a valuable new pipeline of cancer therapeutic candidates.
“We are also delighted to be extending our research collaboration with Benitec to explore the potential of our exosomes as a delivery system for Benitec's unique gene silencing technology targeting drug resistant cancers."
Broker Cenkos regards the collaboration as an interesting strategic alliance.
“Given the pace of progress being made in the gene silencing field and the issues surrounding delivery barriers to these systems, this collaboration offers a unique opportunity for both companies to explore the benefits of combining their novel platforms,” the broker said.
Cenkos repeated its 'buy' recommendation, saying today’s announcements further demonstrate the progress being made by the company in advancing its exosome platform, offering a further dimension to the therapeutic offering.
“We believe that this platform has the potential to deliver an extremely valuable cancer therapeutics pipeline over and above the stem cell technology offering,” the broker said.
Shares in ReNeuron were up 7.3% at 5.5p in mid-afternoon trading.