Shares of Macclesfield-based Redx Pharma plc soared about 160% on Tuesday after it announced a “significant out licensing agreement for its porcupine inhibitor, RXC006” with AstraZeneca.
Redx Pharma said AstraZeneca will take RXC006 forward into clinical development, targeting fibrotic diseases including idiopathic pulmonary fibrosis (IPF).
“Under the terms of the exclusive global agreement, AstraZeneca will pay Redx several early milestones that amount to $17 million, by the time of successful commencement of a phase 1 study,” said Redx Pharma.
“In addition, Redx is eligible to receive up to a further $360 million from AstraZeneca in development, regulatory and commercial milestone payments throughout the course of the programme should it successfully reach these milestones.
“Redx is also eligible for tiered royalties of mid-single digit percentages, based on any future net sales.”
Redx Pharma CEO Lisa Anson said: “We are excited by the potential of porcupine inhibition as a novel approach to tackling fibrotic-associated diseases where there is a real patient need.
“This agreement, where AstraZeneca will license this first in class porcupine inhibitor for IPF and progress it into development, highlights, once again, Redx’s ability to generate molecules that have significant potential as novel medicines.”
Mene Pangalos, Executive Vice President BioPharmaceuticals R&D, AstraZeneca said: “Fibrotic diseases such as idiopathic pulmonary fibrosis have significant impact on patients’ lives and new therapies are urgently needed.
“We look forward to progressing this porcupine inhibitor into clinical trials as a novel approach to supress Wnt signalling and potentially modify fibrotic disease processes.”