ReNeuron : Annual Report 2021

Developing stem

cell technologies to

improve patients' lives

ReNeuron Group plc

Annual Report and Accounts 2021

Inside our report

Introduction

A snapshot of our year	2
Financial Highlights	3
Group at a glance	4
Chairman's statement	7

Strategic Report

Our marketplace	10
Our business model	15
Our progress for developing
life-changing therapies	16
Our progress towards
changing patients' lives	18
Chief Executive Officer's
review of performance	24
Financial review	27
Directors' duties	28
Sustainability	29
Risks and uncertainties	30

Governance

Board of directors	34
Senior management	36
Directors' report	38
Corporate governance	40
Audit committee report	46
Directors' remuneration report	48

Financial Statements

Independent auditors' report	57
Group statement of
comprehensive income	62
Group and Parent Company
statements of financial position	63
Group and Parent Company
statements of changes in equity	64
Group and Parent Company
statements of cash flows	65
Notes to the financial statements	66

Annual General Meeting

Notice of annual general meeting	89
Explanatory notes to the business
of the annual general meeting	92

Other Information

Welcome to our 2021 Annual Report

As a leader in cell-based therapeutics, we develop allogeneic stem cell technology platforms, stem cell derived exosomes and induced pluripotent stem cells (iPSCs).

Advisers	93
Shareholder information	93
Glossary of scientific terms	94

Introduction

Our vision is to improve patients' lives through our proprietary stem cell technologies.

Who we are

We are a UK-based global leader in the development of cell-based therapeutics, harnessing our technologies to develop 'off the shelf' treatments for diseases with significant unmet needs.

Read more

See our group at a glance on pages 4 to 5

What we do

Our lead cell therapy candidate is in clinical development for retinitis pigmentosa and we are advancing our exosomes and induced pluripotent stem cell (iPSC) platform technologies.

See our business model on page 15

Our technology

Our lead stem cell therapy candidate is cryopreserved allowing global ship-and-store and is not dependent on genetic cause.

Our proprietary exosomes and iPSC platform technologies have potential in a multiple of therapeutic areas.

Read about our competitive advantages on page 6

ReNeuron Annual Report for the year ended 31 March 2021 01

A snapshot of our year

iPSCs

Exosome

hRPC for retinal nanomedicine

diseasesplatform

iPSC platform

Leading programme with Orphan Drug Designation in EU and US in RP and FDA Fast Track Designation

Our progress to date

• Efficacy signal seen in phase 2a subjects reaching 12 months follow up with some variability of response seen between subjects.
• Regulatory approval has been received for the expanded Phase 2a study in US, UK and Spain. This Phase 2a extension study incorporates a doubling of the previous dose, which with other study elements was designed to build on the efficacy signal seen in the earlier cohorts of the study whilst trying to remove some of the variability.
• Four out of the nine additional subjects have been treated to date but a presumed case of bacterial endophthalmitis led to precautionary temporary study enrolment suspension. However, following a completed investigation, and with Data
  & Safety Monitoring Board approval, the study has reopened to enrolment in the US with amendments being filed to reopen in the UK and Spain.
• Three-monthdata from extension segment of Phase 2a study to be available in Q4 2021.

Future milestones and high value opportunities

• Further data read-outs from expanded Phase 2a study expected Q4 2021
• Pivotal trial to commence in H2 2022, subject to Phase 2a data

Multiple industry-based collaborations in progress

Our progress to date

• Four additional collaboration agreements signed with major pharmaceutical/biotechnology companies and two with leading academic institutions exploring multiple methods of loading exosomes.
• Positive early pre-clinical data have shown efficient loading of nucleic acid payloads in its exosomes and these exosome candidates have also demonstrated functional payload delivery.
• Exosome pre-clinicalproof-of- concept data from current research collaborations are expected during Q4 2021.

Future milestones and high value opportunities

• Additional proof of concept data from current research collaborations expected in 2021

Potential to expand our therapeutical portfolio

Our progress to date

• New immortalised, licensable cell lines have been generated from the Company's iPSC platform as potential therapeutic agents for cancer immunotherapy and type 1 diabetes.

Future milestones and high value opportunities

• Validation of technology and publication of pre-clinicalproof-of- concept data

02 ReNeuron Annual Report for the year ended 31 March 2021

Introduction

Business development

Reconfiguration of our Non-Executive Board membership

During the period, we reduced the Non-Executive membership of the Board. As part of this reconfiguraton, Dr Tim Corn, an existing Non-Executive Director of the Company, became Chairman of the Board and Mark Evans, the Chairman of Obotritia Capital KGaA ("Obotritia"), was appointed as a non-independentNon-Executive Director of the Company.

Since the year-end, the Board has been strengthened further by the appointment of Iain Ross as Non-Executive Chairman and Barbara Staehelin as Senior Independent Non-Executive Director.

Placing, subscription and open offer outcome

Successful fundraise in December 2020, raising approximately £17.5 million (before expenses) which will allow the Group, inter alia, to deliver extended clinical data from its ongoing retinitis pigmentosa (RP) Phase 2a study and to deliver proof-of-conceptpre-clinical data from ongoing exosome collaborations which could enable potential out-licensing deals.

CTX stem cell therapy candidate

Strategic decision in June 2020 to progress stroke disability programme through regional partnerships. Fosun Pharma to develop and commercialise CTX programme in China under the exclusive out-licence agreement signed in April 2019.

Future developments

CTX cell therapy candidate is available for licensing in stroke disability outside China and in all territories in other potential indications.

We aim to reach important, data-driven potential value inflection points over the next 12 months which will enable us to pursue opportunities for securing potential out-licensing deals across all therapies.

Cash, cash

equivalents and

bank deposits

£22.2m

(2020: £12.6m)

ReNeuron Annual Report for the year ended 31 March 2021 03