Redx Pharma receives $5m milestone payment from US partner
Redx Pharma, the Macclesfield-based drugs discovery company focused on the treatment of cancer and fibrotic disease, has received a $5m milestone payment after one of its products was cleared for clinical development.
NASDAQ-listed Jazz Pharmaceuticals and Redx confirmed the US Food and Drug Administration (FDA) has cleared the Investigational New Drug (IND) application for JZP815, a pan-RAF inhibitor for the treatment of solid tumors and hematologic malignancies, enabling Jazz to proceed with initiating a clinical trial for JZP815.
As a result, a milestone payment of $5m from Jazz, payable to Redx, has been triggered.
The milestone payment was triggered under the agreement in which Jazz acquired Redx’s pan-RAF inhibitor programme, announced on July 10, 2019.
Redx carried out development activities up to the completion of IND-enabling studies.
Today’s milestone is on top of $6.5m already received under the collaboration and Redx remains entitled to development, regulatory and commercial milestone payments, as well as incremental tiered royalties in mid-single digit percentages, based on any future net sales.
Jazz expects to advance JZP815 into a Phase 1 clinical programme and, when initiated, JZP815 will be the fifth compound discovered by Redx to enter the clinic.
Lisa Anson, Redx chief executive, said: “When Jazz commence the clinical programme this will become the fifth drug candidate discovered by Redx to enter the clinic, further validating our world class research and development capabilities. We value the strong relationship we have built with Jazz Pharmaceuticals and look forward to continuing our work together.”
Rob Iannone, executive vice president, global head of research and development of Jazz Pharmaceuticals, said: “We’re excited to advance JZP815, a precision pan-RAF inhibitor with a differentiated mechanism of action, into a clinical trial programme.
“JZP815 may represent a significant advancement in the pan-RAF inhibitor class by not inducing paradoxical pathway activation that can stimulate the growth of certain cancers.
“The JZP815 programme exemplifies our continued progress in expanding our early stage oncology pipeline, and in developing therapies with the potential to address unmet patient need.
“Redx has an exceptional team of research and development scientists and together we have formed an outstanding collaboration, leveraging the strengths of both companies.”
Jazz and Redx also have a separate collaboration agreement to discover and develop drug candidates in other areas.