Redx R&D costs increase interim losses in a period of strong progress
Redx Pharma, the Cheshire-based drugs discovery and development company focused on cancer and fibrosis treatments, saw losses widen in the six month period to March 31, but reported strong progress in its testing programmes.
Turnover at the Alderley Park business in the interim period was £2.101m, up from £1.172m in the corresponding six months last year. A pre-tax loss of £12.660 compared with a £3.955m pre-tax loss a year ago.
Redx had a cash balance, at March 31, of £39.9m, compared with £1.9m the previous year, providing cash runway through 2022.
This followed the completion of a financing round in December 2020, raising £25.7m, in addition to £5.1m of the £22.2m outstanding loan note liability converted to ordinary shares.
There was increasing investment in research and development by £6.2m, reflecting the strong progress in its pipeline, which led to increased operating expenses of £12.6 million, compared with £5.2m in 2020.
Chief executive, Lisa Anson, said: “I am pleased to report a strong six months for the company as we work to create an exciting future focused on our differentiated medicinal chemistry capabilities and progression of selected clinical drug development programmes.”
She said the results demonstrate delivery of key milestones in the progression of its pipeline with further critical milestones due over the next 12-18 months.
“The company has made tangible progress in its portfolio. RXC004, its promising lead oncology asset, is currently completing a Phase 1 study with preparations afoot to commence a Phase 2 study in H2 2021.
“Dosing of the first patient cohort with a combination of RXC004, the company’s lead drug candidate, and nivolumab, has been initiated and RXC007, the company’s exciting new development compound for fibrosis, has entered the clinic following the initiation of a Phase 1 study.”
She added: “The company has also made strong progress in securing sufficient investment capital to fully realise the potential in these programmes and the innovative science in our company.
“With the continued support from our specialist investors, including Redmile Group, we have the financial stability to execute our business plan, and with the talented team of scientists that we have retained, our committed leadership team and our exciting assets, I believe we now have the key ingredients to successfully execute our strategy.”
