Shares of Macclesfield-based Redx Pharma plc rose another 15% on Wednesday after it announced a new research collaboration with Dublin-based Jazz Pharmaceuticals to discover and develop two targeted cancer therapies.
The Macclesfield firm said it will lead discovery and preclinical development activities on the two cancer targets.
Redx said that as part of the agreement it will receive $10 million up front and $10 million in Year 2 with up to a further $400 million in milestone payments, plus tiered royalties.
Shares of Redx Pharma have soared about 550% in the past 12 months to give it a current stock market value of around £120 million.
Last month, it announced a “significant out licensing agreement for its porcupine inhibitor, RXC006” with AstraZeneca.
On Wednesday, the Macclesfield firm said: “Redx Pharma plc, the drug discovery and development company focused on cancer and fibrosis, is pleased to announce that it has signed a new research collaboration agreement with Jazz Pharmaceuticals plc to discover and develop drug candidates for two cancer targets on the Ras/Raf/MAP kinase (MAPK) pathway.
“Redx will be responsible for research and preclinical development activities up to Investigational New Drug (IND) submission.
“Under the terms of the agreement, Jazz will pay Redx an upfront payment of $10 million followed by another $10 million in year two provided research work is continuing.
“Following delivery of an IND-ready molecule, Redx will be eligible to receive up to a further $200 million from Jazz in development, regulatory and commercial milestone payments for each programme.
“The first milestone is payable upon successful IND submission and all subsequent milestones are contingent on successful completion of the relevant stages of development.
“In addition, for both programmes, Redx is eligible for tiered royalties in mid-single digit percentages, based on any future net sales.
“Jazz will own all intellectual property as it is generated, and following a successful IND submission, will be responsible for further development, manufacturing, regulatory activities and commercialisation.
“This research collaboration follows the previously announced sale of Redx’s preclinical pan-RAF inhibitor programme to Jazz for the potential treatment of RAF and RAS mutant tumours in July 2019.
“The pan-RAF collaboration between the companies, following on from that sale, has been progressing well.
“This new agreement with Jazz builds on the existing collaboration and further validates Redx’s strength in medicinal chemistry and drug design, as well as its proven capability as a successful research partner.
“In addition to pursuing this collaboration, Redx continues to execute its strategy in progressing its lead oncology and fibrosis programmes, including oral porcupine inhibitor RXC004, targeting Wnt-driven tumours in an ongoing clinical trial, and oral ROCK2 inhibitor RXC007, targeting fibrosis, planned to enter the clinic in 2021.”
Redx Pharma CEO Lisa Anson said: “This new agreement reinforces Redx’s strong position as a successful research partner and its expertise in medicinal chemistry and drug design.”