Bio company raises £34m through placing with institutional investors
Redx Pharma, the Macclesfield-based drugs discovery company, has raised £34.3m through a share placing.
The proceeds will be used to progress its current pipeline of work. Redx focuses on the treatment of cancer and fibrotic disease.
It achieved the raise through a placing of shares with institutional investors.
A number of the company’s existing investors indicated strong support for, and that they intended to participate in, the placing.
Lisa Anson, Redx chief executive, said : “At Redx we are committed to developing novel, targeted therapies for oncology and fibrotic diseases in areas of high unmet clinical need. This fundraise enables us to continue to progress our clinical pipeline towards important proof-of-concept data readouts, as well as advance our promising research pipeline of differentiated drug candidates towards our goal of three additional wholly-owned IND submissions by 2025.
“Specifically, the proceeds provide Redx with a cash runway to reach several significant potential value inflection points through 2023, including topline data from both the Phase 2 clinical studies with RXC004 in Wnt-ligand dependent cancers, as well as topline data from the Phase 2a study in idiopathic pulmonary fibrosis (IPF) with RXC007.
“In addition, it will allow us to progress RXC008 through IND submission to address fibrostenotic Crohn’s disease, where there are currently no curative treatment options available.”
She added: “We would like to thank our existing shareholders for their continued strong support and are pleased to welcome a new specialist healthcare investor, Invus, to Redx and our commitment to creating world leading medicines to transform patients’ lives.”
Natalie Berner, managing director of Redx’s biggest stakeholder, Redmile Group, said : “We are pleased to continue to support the Redx team and their established clinical pipeline, drug discovery engine, and strong partnerships.”
Tom Burt, partner, Sofinnova Crossover Strategy, said : “Existing investors are delighted to further support Redx in this financing and we welcome a new specialist investor. Closing such a placing, despite challenging markets, is evidence of Redx’s promising pipeline candidates, leading science base and excellent team.”
The company’s last annual financial results, released earlier this year, revealed that it had net cash of £29.6m, compared with £27.5m the previous year, and made a loss for the year of £21.5m, up from the £9.2m loss in 2020.
Redx’s cash position has been supplemented by $26m – approximately £19.1m as recorded by the company at the time of receipt – in milestones that were triggered during the calendar year 2021 from progress on all three ongoing collaborations.