Renalytix terminates formal sale process

20th Aug 2024 09:58

(Sharecast News) - Renalytix, a company specialising in artificial intelligence-enabled diagnostics for kidney disease, announced the termination of its formal sale process on Tuesday.

The AIM-traded firm said the decision was made after an assessment by the board, which concluded that there was no realistic prospect of an acquisition offer for the company's issued and to-be-issued share capital in the near term.

It initiated the process in March after an unsolicited approach from a large, unnamed publicly-listed diagnostics company.

The company said it remained committed to its strategic goals, and was in advanced discussions with key stakeholders who had expressed support for Renalytix's refreshed business plan.

It said the plan was focussed on targeted investment, reduced operating costs, and establishing a suitable capital structure.

Renalytix said it aimed to maximise shareholder value, and would continue to explore options to achieve that.

Renalytix said it had achieved significant milestones in 2024, including FDA approval and Medicare coverage for its KidneyIntelX.dkd test, priced at $950 per test.

Those developments reportedly positioned the company for potential revenue growth over the next three years, contingent on securing further funding and developing commercial partnerships.

The company reported an unaudited cash position of $4.7m as of 30 June, with a cash runway extending into the fourth quarter, following successful financings earlier in the year.

Renalytix said it would provide further updates as its strategic initiatives progressed.

At 1014 BST, shares in Renalytix were down 20.69% at 11.5p.

Reporting by Josh White for Sharecast.com.