Redx losses widen to £10.7m

Drug development company Redx Pharma has seen its half year losses widen to £10.7m but says a strategic refocus of the business is expected to deliver annual cost savings of almost half that amount in the future.

The company, which is moved its headquarters from Liverpool to Alderley Park in Cheshire towards the end of last year, saw its losses increase from £7.1m for the same period last year.

In March Redx announced it was cutting staff numbers by 60%, following a change in strategy to focus more on pipeline development than discovery. It said it remains committed to discovery research, but at a reduced investment level.

The changes mean that around 86 jobs are to be cut, from a total of around 140 staff based at Alderley Park.

The company has today said this strategic restructuring will result in annual cost savings of around £4.2 m a year.

Dr Neil Murray, chief executive of Redx Pharma, said: “Redx Pharma is now optimally positioned to capitalise on the potential of its world class discovery engine with the transition to clinical development of our two best-in-class assets RXC004 and RXC005 in oncology.

“I am also excited by the potential of our pipeline in fibrosis, bringing novel medicines to areas of severe unmet need. We look forward to announcing the start of our first clinical trial with RXC004 and to building greater value for our shareholders as a clinical stage business.”

Iain Ross was appointed as non-executive chairman from May 1.

He said: “Following the recent re-structuring of the organisation we are now focused on implementing an aggressive strategy to accelerate the “realisation of value” by progressing the clinical and commercial development of our lead programs and maximising the long term potential of the pipeline. I am delighted to be working with the Redx team.”

Redx listed on AIM in March 2015, raising £15m. Since then it has raised a further £22m through share placings, the most recent being in March.