Alderley Park-based Redx Pharma, the drug development company focused on cancer and fibrosis, announced that its revenue rose about 75% to £10 million in the year to September 30, 2021, boosted by milestone payments of $4 million from AstraZeneca and $3 million from Jazz Pharmaceuticals.
However, loss for the year widened to £21.5 million from £9.2 million a year earlier.
The company said its cash burn rate has risen significantly during the last 12 months and that further fundraising for the company will be required in the coming year.
Research and development (R&D) expenditure rose to £24.4 million from £10.5 million.
Post period, on December 9, 2021, Redx Pharma announced a $10 million milestone was earned from Jazz Pharmaceuticals for the progress in ongoing research collaboration and on December 23 Redx announced a $9 million milestone was earned from AstraZeneca as RXC006 entered clinical trials.
Redx Pharma’s biggest shareholder is San Francisco investment firm Redmile Group LLC with a 79% stake.
In its outlook, Redx Pharma said: “The last 12 months have been very encouraging as we have continued to deliver on our strategy, which consistently demonstrates our drug discovery and development capabilities and our ability to progress our in-house pipeline.
“Whilst we have been encouraged by the recent financing and the support from our investors including Redmile Group, Sofinnova Partners and Polar Capital, we are aware that we continue to face the ongoing funding challenge faced by many early stage listed biotech companies: to secure further investment to develop their pipelines, and that further funding will be required in the coming year.
“The board continue to review the best options for the company to further strengthen our financial position beyond 2022 so that we can drive forward our two promising clinical programmes and preclinical research at pace.”
RedX CEO Lisa Anson said: “During the period, we have made strong progress in advancing our pipeline.
“Our lead oncology asset, RXC004, entered a Phase 2 clinical trial and our lead fibrosis asset, RXC007, entered a Phase 1 clinical trial.
“Our discovery pipeline of differentiated programmes continues to progress driven by the strength of our science and validated by milestone revenue increasing during the year.
“We are in a position to deliver meaningful results in the clinic which could drive benefits for patients and value for shareholders.”
In her report, Anson added: “In December 2020 we raised £25.7 million (gross) of funds that are now being deployed to further support and augment the research and development pipeline of the company and its subsidiaries, reflecting the strong support from our key investors.
“As we grow, we will continue to face the industry-wide challenge of securing sufficient investment capital in order to fund R&D and allow us to fully realise the potential of our programmes and innovative science.
“Our cash burn rate has risen significantly during the last 12 months, as we have two wholly owned assets in the clinic and an expanded scientific team.
“We have sufficient cash runway, on current plans, to last through Q4 of the calendar year 2022.
“Further fundraising will therefore be required in the coming year.”