Redx Pharma in US merger
Redx Pharma is to merge with Jounce Therapeutics an American drug research business.
The Cheshire-based drugs discovery and development company focused on cancer and fibrosis treatments will continue to be based at Alderley Park in Cheshire.
Based on Redx’s fully diluted market capitalization of £244m ($294m) and Jounce’s expected cash and cash equivalents at the time of completion, this implies a market value for the combined group of $425m, before taking into account the value of Jounce’s existing clinical and non-clinical stage programs.
Jounce is developing cancer treatments and the new company will create a transatlantic research business focused on developing small molecule drugs and biologics, and a clinical pipeline with multiple value inflection points in the near and medium term.
Shares in the merged business will be solely listed on the Nasdaq exchange in the US and will be led by current Redx chief executive Lisa Anson, Dr Jane Griffiths current Redx chair will become the non-executive chair of the combined group; with the board including representatives from both Redx and Jounce, in line with the relative shareholding percentages.
The combined group will be headquartered at Alderley Park, UK, with a drug discovery and clinical development team in Massachusetts, USA.
Lisa Anson, Chief Executive Officer, Redx Pharma commented: “By combining Redx’s proven track record in small molecule drug discovery and development with Jounce’s expertise in biologics and immunotherapy, we will establish a world-class biotech company with a robust pipeline, aimed at developing therapeutics for cancer and fibrotic disease. RXC007, our next-generation ROCK2 inhibitor, will lead the clinical pipeline, and we will now further investigate opportunities for this asset in cancer-associated fibrosis and other interstitial lung diseases. While the majority of the combined group’s operations, and its headquarters, will be at Alderley Park in the UK, we believe that listing solely on Nasdaq is the most efficient way to enable us to access a deep pool of risk capital and engage with specialist global investors to support our future growth.”
