Redx Pharma set to raise £20m with AIM float
LIVERPOOL and Cheshire drug discovery company Redx Pharma is to become the first North West business to go public in 2015 as it revealed plans to raise £20m through an AIM listing.
Shares in the company, which has 140 employees including 120 scientists at its two bases, will begin trading in early February. Post fund-raising the business will be valued between £60m to £80m. Redx has appointed Shore Capital as its nominated adviser and broker (NOMAD).
In the year to the end of September Redx, which was founded in 2010, generated revenues of £2.4m. Its broker forecasts this to rise to £4m in the current financial year.
Co-founder and chief executive Neil Murray said: “This is an exciting and important moment for Redx. With all the talk of the Northern Powerhouse we are proud to be based in the North West and taking this step forward in our growth and development.
“I believe becoming a listed business will benefit us in many ways, not least in developing our existing pipeline in oncology and infectious disease but in supporting our third subsidiary focused on immunology.
“It think it gives more job security to our staff and it will also allow us to access a broader pool of talent.”
He said none of Redx’s major investors, including largest shareholder Jon Moulton, would be selling out of the business.
“Jon has been with us from day one, he has been highly supportive of the business and has been a joy to work with. it has been very useful to have his name of the register.”
The company has a pipeline of 13 programmes, which are at different stages of progression. Four have achieved pre-clinical proof of concept, with relevance for respective therapies to treat MRSA, bone tumours, skin, brain and blood cancers.
Dr Murray added: “In a short time, our team has established a pipeline of exciting best-in-class programmes in oncology and infectious disease. We believe that Redx is now at the forefront of research into small molecule tumour immunology and cancer stem cells, as well as the critical threat of antimicrobial resistant infection.”
“The placing and admission to AIM is another important milestone in Redx’s development. It will strengthen the business and support our objectives of progressing our programmes and achieving early profitability.”
