Sareum Holdings (SAR) AI Stock Analysis

• Market Cap: £27.61M
• Dividend Yield: N/A
• Average Volume (3M): 619.72K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.43
• 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: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 19.00p ▲(26.67% 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

Asset-monetisation/licensing business model

A licensing and asset-monetisation model scales value without requiring Sareum to commercialise products itself. Durable milestone and royalty streams from partners can fund R&D, reduce capital intensity, and enable value realisation from multiple discovery programmes over time.

Debt-free balance sheet

Having no reported debt materially lowers financial fixed costs and gives management flexibility in structuring deals, prioritising R&D or licensing discussions. Over the medium term this strengthens negotiating leverage and resilience to cyclical funding windows versus leveraged peers.

Focused kinase-inhibition R&D platform

A focused small-molecule kinase platform represents a durable technical competency and potential competitive moat. Platform expertise can create multiple, partnerable assets across indications, improving long-term deal flow and the chance of milestone-triggered funding events.

Negative Factors

Sustained cash burn and negative free cash flow

Persistent negative operating and free cash flow steadily erodes cash reserves and reduces runway, forcing recurrent external financing. Over months this can divert management attention, increase dilution risk, and constrain sustained investment in higher-probability development programmes.

Pre-revenue with persistent operating losses

A pre-revenue profile with recurring operating losses means the company cannot self-fund development. This structural deficit heightens dependence on external partnerships or financings, lengthens the timeline to positive cash generation, and raises execution risk versus revenue-generating peers.

Small, volatile equity base and negative ROE

A small, volatile equity base and consistently negative ROE limit the firm's ability to absorb setbacks and finance growth internally. Over the medium term this increases the likelihood of frequent fundraising, governance pressure, and dilution, undermining capital stability for sustained R&D plans.

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

Sareum Holdings faces significant financial challenges, including zero revenue and persistent losses. Although there is no debt, reliance on equity financing and declining equity raise concerns. Negative cash flow and free cash flow highlight sustainability issues without external funding.

Income Statement

Sareum Holdings has consistently reported zero revenue, indicating challenges in commercializing its products or services. The company's net income and EBIT margins are negative, reflecting ongoing operational losses. The lack of revenue growth is a significant concern for future profitability.

Balance Sheet

The company maintains no debt, which is a positive aspect. However, the declining equity and low asset base may limit financial flexibility. The equity ratio remains above 50%, showing reliance on equity financing, but the decreasing trend in stockholders' equity poses a risk.

Cash Flow

Sareum Holdings shows negative operating cash flow, indicating operational challenges. The company relies on financing activities to support cash flow needs. Free cash flow remains negative, presenting concerns about sustainability without external funding.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAR, the sentiment is Positive. The current price of 15 is below the 20-day moving average (MA) of 15.74, above the 50-day MA of 14.38, and below the 200-day MA of 17.31, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 78.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£32.47M	-3.89	-204.29%	―	3.31%	21.91%
APTA	52 Neutral	£26.30M	-6.96	-213.66%	―	39.88%	81.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
POLB	49 Neutral	£30.33M	-3.82	-46.84%	―	―	―
SAR	47 Neutral	£27.61M	-5.93	-202.14%	―	―	23.76%
IMM	46 Neutral	£36.70M	-8.20	-259.88%	―	―	―
FAB	44 Neutral	£17.05M	-10.42	-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.

Sareum Holdings Enhances Financial Advisory Team with New Joint Broker Appointment

Sareum Holdings PLC has appointed Singer Capital Markets as a Joint Corporate Broker, alongside Strand Hanson Limited as its Nominated Adviser and Oberon Capital as another Joint Corporate Broker. This strategic appointment is expected to enhance Sareum’s market presence and strengthen its financial advisory team, potentially impacting its operations and stakeholder relations positively.

Sareum Holdings Reports Progress in Drug Development and Strategic Collaborations

Sareum Holdings PLC announced its unaudited financial results for the year ended 30 June 2025, highlighting significant progress in its pipeline. The company successfully completed a Phase 1 clinical trial for SDC-1801, demonstrating a favorable safety profile and supporting further development into Phase 2 trials. Despite a temporary halt in a toxicology study, Sareum plans to restart it soon. The company also secured a license for SRA737 on improved terms, increasing its potential future revenue share. Additionally, Sareum expanded its research into neuro-inflammatory diseases through a collaboration with Receptor.AI, leveraging AI tools to discover new treatments. These developments position Sareum well for future growth and value creation.

Sareum Holdings Discontinues Toxicology Study for SDC-1801 Amid Safety Concerns

Sareum Holdings has discontinued its 16-week GLP preclinical toxicology study for SDC-1801 due to safety findings observed in control-group animals, which were given an inactive dosing solution. The company is investigating the cause of these findings and plans to restart the study with a new provider, aiming to complete it with existing cash resources. Despite this setback, previous Phase 1 trials showed no safety concerns, and Sareum remains focused on advancing to Phase 2 clinical development for psoriasis.