Redx Pharma bids for RGF cash for second venture

REDX Pharma is hoping to raise nearly £11m to create a new subsidiary to develop drugs to combat resistance to antibiotics and new medicines to tackle viral infections ranging from flu to HIV.

The ambitious Liverpool bio-medical company, will only proceed with the venture – which will initially create more than 100 jobs – if it succeeds with a bid for £4.7m from the Government’s Regional Growth Fund.

Redx, which has already secured nearly £5m from the RGF for its Oncology business, will raise a further £6.1m from private investors for 

Redx Anti-Infectives.

Redx Pharma chief executive Dr Neil Murray told TheBusinessDesk.com said: “We want to base the new business in Liverpool, with our existing operations, and the Regional Growth Fund is critical to this happening.

“We have a reasonable expectation that it will succeed – we have delivered everything we said we would in Redx Oncology.”

Redx ‘s private sector fund-raising will be led by Manchester-based corporate finance house Acceleris.

Should the RGF funding bid be accepted, the money will support an initial two-year industrial research phase of chemistry, biochemistry and analytical testing, which would create 119 high-value science jobs in Liverpool.

 

Redx says  the total cost of the project would be £32.7m over five years. The initial research scheme will unlock further investment of £22m for years three to five.

 

If all goes to plan, the new facility could open in April 2013.

 

Dr Neil Murray added: “Our bid is a key element of Liverpool’s Life Science strategy and a tangible means of delivering sustainable economic growth.

“It is also strongly supported by the Liverpool Local Enterprise Partnership; the Mayor of Liverpool, Joe Anderson; Liverpool City Council, Liverpool Vision, University of Liverpool and the Royal Liverpool & Broadgreen University Hospitals NHS Trust.”

Alan Welby, executive director – Key Growth Sectors at Liverpool LEP said: “Redx Pharma is a fast, dynamic and exciting company which has grown rapidly since they located in Liverpool.

“This programme of investment from Redx Pharma is excellent news for the City Region’s economy and our life sciences industry. It will drive growth, stimulate innovation and create highly skilled jobs.

 

Max Steinberg, chief executive of Liverpool Vision, the city’s economic development company, added: ““Redx has already demonstrated its confidence in this city through its commitment to develop rapidly its oncology division here in Liverpool, and we are keen to build upon this fine example of public/private co-operation.”

Redx Anti-Infectives would join the other two parts of the business in becoming the cornerstone tenant for the development of Liverpool’s new biomedical campus development, a £28m project planned to go ahead on land owned by the Royal Liverpool Hospital.