Redx makes new start after exiting administration
Redx Pharma, the Cheshire cancer drug developer, has announced its first interim results since emerging from administration.
The Alderley Park-based business posted revenues of £129,000 for the six months to March 31, compared with £30.47m for the year to September 2017, while a pre-tax loss of £4.94m in the six month period to March 31, compared with a loss of £10.98m the previous year.
AIM-listed Redx exited administration on November 2, 2017, with a cash balance of £13.9m, and resumed trading its shares on AIM on November 6.
Admimistrators had been called in by Liverpool City Council following an ongoing dispute over a £2m loan that matured at the end of March, 2017.
Liverpool Council’s fall out with the company came after it relocated from Liverpool to Alderley Park in Cheshire towards the end of 2016.
In July last year the administrators agreed to sell one of the company’s development programmes to a US-based biotechnology company for £30.5m.
The sale meant all creditors were able to be paid and provide enough working capital to return the business to solvency.
Today, executive chairman Iain Ross said: “I am pleased with the progress that Redx has made in the past six months.
“We have continued to advance our R&D programmes and achieved substantial cost savings across the business.
“We are all delighted to have Lisa Anson on board as our new chief executive officer.
“Her experience and knowledge will prove invaluable to the group and I look forward to her taking over the reins on June 1.
“Her appointment, along with Dr Andrew Saunders as our cief medical officer, strengthens the Redx team as we continue to execute on our strategy.”
On June 1, Mr Ross will re-assume his role as non-executive chairman.
Over the past six months the firm announced a strategic update and refocused its R&D pipeline, consisting of two development programmes and five research programmes.
The firm’s cash balance at March 31, stood at £10.3m, and it said it had managed to achieve £7m of cost savings in the six month period.
In today’s announcement Mr Ross touched on the administration process, saying: “This was an uncomfortable period for all involved and, as a result, your new board has restructured the business model, as well as insisting upon transparency, realism and a change in culture in the overall management of the business.”
Looking forward, he added: “Our science remains of the highest quality, but the management of our assets is now more rigorous and akin to that of a small, but thriving, biotech company.
“I believe we are now fit for purpose and I look forward to working with Lisa, our new CEO, and her team to build sustainable long-term value for shareholders.”
