Sareum Holdings (SAR) AI Stock Analysis

• Market Cap: £24.16M
• Dividend Yield: N/A
• Average Volume (3M): 619.72K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.56
• Revenue Growth: N/A
• EPS Growth: 23.76%
• Country: UK
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.02
• Shares Outstanding: 138,065,170
• 10 Day Avg. Volume: 1,134,615
• 30 Day Avg. Volume: 619,716
• PEG Ratio: 0.31
• Price to Book (P/B): 8.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: 17.00p ▲(13.33% Upside)

The score is held down primarily by weak financial performance (pre-revenue, recurring losses, and ongoing cash burn requiring external funding). Technicals provide a partial offset with strong momentum above major moving averages, but overbought signals add risk. Valuation remains constrained due to negative earnings and no dividend support.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet materially reduces refinancing and interest burden risk for a pre-revenue biotech. This enhances strategic optionality: management can prioritise partnerships or R&D sequencing without near-term covenant pressure, extending runway and preserving upside for licensors and partners.

Partnering/licensing business model

A licensing-and-collaboration model is capital-efficient and fits the biotech ecosystem: it enables milestone and royalty-based upside while limiting late-stage development costs. Over months this can produce non-dilutive receipts and de-risk value through third-party development investments.

Focused discovery platform and collaborations

A specialised kinase-inhibition discovery platform and history of research collaborations create durable scientific IP and repeatable asset-generation potential. This expertise supports multiple out-licensing opportunities across indications, increasing the odds of milestone realisations over time.

Negative Factors

Pre-revenue and persistent losses

Being pre-revenue with recurring operating losses means the company cannot self-fund operations. Losses erode equity, reduce negotiating leverage with partners, and mean progress depends on external capital or licence-triggered receipts before sustainable profitability is achievable.

Sustained cash burn and negative cash flow

Consistent negative operating and free cash flow forces continual reliance on external financing. Over a multi-month horizon this raises funding risk, may necessitate dilutive equity raises, and constrains R&D cadence and long-term project selection until milestone or licence payments materialise.

Small, volatile equity and funding dependence

Limited and volatile equity base increases vulnerability to adverse events and magnifies dilution from necessary capital raises. Dependence on episodic funding cycles rather than internal cash generation makes long-term planning and sustained investment in multiple programs more challenging.

Sareum Holdings Business Overview & Revenue Model

Company Description

Sareum Holdings plc, a specialist drug development company, engages in the discovery and development of therapeutic drugs for cancer and autoimmune diseases. It develops small molecule therapeutic drugs based on its Sareum Kinase Inhibitor Library drug discovery platform. The company's product pipeline includes Checkpoint Kinase 1, Aurora+FLT3 kinase, and TYK2/JAK1 kinase. It has collaborations with Hebei Medical University Biomedical Engineering Center and Sierra Oncology, Inc. The company was founded in 2003 and is based in Cambridge, the United Kingdom.

How the Company Makes Money

Sareum Holdings generates revenue primarily through licensing agreements and collaborations with pharmaceutical companies. The company partners with larger organizations to co-develop its drug candidates, sharing the costs and risks associated with clinical trials and commercialization. Sareum typically receives upfront payments, milestone payments based on the achievement of development goals, and potential royalties on sales if the drugs reach the market. Additionally, the company may engage in research collaborations that provide funding and resources to advance its drug discovery projects.

Sareum Holdings Financial Statement Overview

Summary

Pre-revenue profile with persistent operating losses and negative EBITDA/EBIT, plus sustained negative operating and free cash flow (cash burn). The main offsetting positive is a debt-free balance sheet and some recent narrowing of cash outflow, but funding dependence remains high.

Income Statement

Sareum Holdings remains pre-revenue (revenue is effectively zero in recent annual periods), with persistent operating losses and negative EBITDA/EBIT each year. Net losses have widened versus earlier years, indicating a heavier cost base without offsetting commercial income. While loss-making is common in biotechnology, the lack of visible revenue traction keeps profitability and earnings quality weak.

Balance Sheet

The balance sheet shows no reported debt, which reduces financial risk and provides flexibility. However, equity is relatively small and has been volatile over time, and returns on equity are consistently negative due to ongoing losses. Asset levels also fluctuate meaningfully year to year, underscoring dependence on funding cycles rather than internally generated growth.

Cash Flow

Cash burn remains significant, with operating cash flow and free cash flow negative across all periods. There is some improvement in the most recent year (cash outflow narrowed versus the prior year), but the business is still not self-funding. Free cash flow closely tracks net losses, reinforcing that ongoing operations require external financing until revenues emerge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	-1.00K	-1.00K	-2.00K	-1.09K
EBITDA	-4.91M	-3.38M	-4.54M	-4.01M	-2.57M	-1.70M
Net Income	-4.44M	-4.44M	-3.42M	-3.19M	-2.17M	-1.50M
Balance Sheet
Total Assets	4.23M	4.23M	2.77M	2.02M	4.79M	3.08M
Cash, Cash Equivalents and Short-Term Investments	3.55M	3.55M	1.46M	994.00K	4.26M	2.69M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.95M	1.95M	653.00K	867.00K	455.00K	284.15K
Stockholders Equity	2.28M	2.28M	2.11M	1.15M	4.33M	2.80M
Cash Flow
Free Cash Flow	-2.47M	-2.55M	-3.92M	-3.27M	-2.13M	-1.57M
Operating Cash Flow	-2.47M	-2.55M	-3.92M	-3.27M	-2.13M	-1.57M
Investing Cash Flow	12.00K	89.00K	9.00K	-41.00K	-2.00K	-37.86K
Financing Cash Flow	4.55M	4.55M	4.38M	0.00	3.71M	2.49M

Sareum Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAR, the sentiment is Neutral. The current price of 15 is below the 20-day moving average (MA) of 19.45, below the 50-day MA of 16.08, and below the 200-day MA of 17.65, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 43.32 is Neutral, neither overbought nor oversold. The STOCH value of 15.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SAR.

Sareum Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AREC	56 Neutral	£30.77M	-3.69	-204.29%	―	3.31%	21.91%
APTA	52 Neutral	£23.60M	-6.25	-213.66%	―	39.88%	81.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
POLB	49 Neutral	£30.68M	-3.86	-46.84%	―	―	―
SAR	47 Neutral	£24.16M	-5.19	-202.14%	―	―	23.76%
IMM	46 Neutral	£31.97M	-7.15	-259.88%	―	―	―
FAB	44 Neutral	£16.88M	-9.38	-164.37%	―	-11.43%	23.40%

Sareum Holdings Corporate Events

Sareum Holdings Passes All Resolutions at AGM, Strengthening Governance

Sareum Holdings plc announced that all resolutions at its Annual General Meeting were passed, including the re-election of directors and the approval of financial statements. This successful AGM underscores the company’s stable governance and shareholder support as it continues to advance its pipeline of kinase inhibitors, potentially enhancing its market position in the biotechnology sector.

Sareum Holdings Advances Pipeline and Strengthens Portfolio

Sareum Holdings has made significant progress in its pipeline, particularly with its lead program SDC-1801, which has completed Phase 1 trials and is advancing towards Phase 2 development despite a temporary setback in toxicology studies. The company has improved economic terms for its SRA737 asset and is actively pursuing partnerships to enhance its portfolio value. Additionally, Sareum’s new TYK2 neuroscience collaboration expands its potential in central nervous system diseases, positioning the company for future growth and value creation.

Sareum Holdings Announces AGM and Releases Annual Report

Sareum Holdings PLC has announced its Annual General Meeting (AGM) scheduled for December 9, 2025, which will be accessible online for shareholders via the Investor Meet Company platform. Shareholders are encouraged to submit questions and vote by proxy, as online voting will not be available during the AGM. The company has also released its annual report and accounts for the year ended June 30, 2025, which will be available on its website.