Redx Pharma to be valued at £55m on AIM debut
DRUG development company Redx Pharma will be valued at just over £55m when shares begin trading on Friday.
The Liverpool-based biotech company, which also has an operation at Alderley Bark, Cheshire, has placed
17,647,059 new ordinary shares at 85p per share, raising £15m, £13.5m net.
Chief executive Neil Murray said he was pleased with the response to Redx after institutional roadshows, and said is looking forward to delivering on the company’s strategy to create a sustainable and profitable business.
“This placing and Redx’s admission to AIM mark another step in our development and the prospects for Redx look exciting.
“We have a very promising pipeline of potential drug candidates, in two areas of high need, cancer and infection. Alongside this we have strong partnerships and collaborations – including with AstraZeneca and the NHS. Our approach – to focus on improving existing drugs and to partner early – has helped us to establish Redx as a highly attractive pipeline generator to large pharma and emerging life science companies.
“We look forward to reporting on the company’s continuing progress as an AIM-quoted company.”
In the year to the end of September Redx, which was founded in 2010, generated revenues of £2.4m. Its broker and NOMAD Shore Capital forecasts this to rise to £4m in the current financial year.
Initially Redx had hoped to raise £20m before expenses, but Murray said this was not a negative relection on the business, but down to timing.
“We’ll still be able to achieve what we want to – it’s not going to affect our growth plans at all.”
Redx’s existing investors, which include veteran investor and venture capitalist Jon Moulton, are being joined on the shareholders’ register by institutions including Axa Framlingon.
Moulton, will increase his investment through the listing and remain the biggest shareholder with 16.8%
The company which has 140 employees including 120 scientists at its two locations aims to capitalise on the growing need of big pharmaceutical companies to refresh their drug development pipelines.
The proceeds of the placing will be used to progress the current pipeline of oncology and infectious disease assets and support the launch of a third subsidiary focused on immunology.
