Biotech firm to raise £12m in share placing

Cheshire-based drug discovery and development company Redx Pharma is poised to raise £12m in a placing of up 20.5m shares and a subscription of 11.5m subscription shares by institutional investor Lanstead Capital.

The placing at a price of 37.5p per share will allow the company to continue its ground-breaking research into cures for E. coli and Pseudomonas which can be responsible for drug resistant forms of pneumonia, urinary tract infections, intra-abdominal infections and septicaemia and cancer at Alderley Park.

Cantor Fitzgerald and WG Partners are acting as joint bookrunners in connection with the placing.

Redx was founded in 2010 and became AIM listed in March 2015, simultaneously raising £15m.

Sine then, the company has made significant progress researching best-in-class or first-in-class small-molecule drugs in areas of significant unmet medical need, primarily in cancer and immunology.

This pipeline strategy has been validated by the progression of its first two high-value clinical candidates: the Bruton’s tyrosine kinase reversible inhibitor RXC005 and the Porcupine inhibitor RXC004, in lucrative therapeutic areas with substantial commercial potential and medical need.

RXC004 offers the potential to be a first-in-class drug for several difficult-to-treat cancers, including gastric, biliary and pancreatic.