Redx Pharma raises £34m selling shares in placing

RedX Pharma CEO Lisa Anson

Alderley Park-based Redx Pharma, the drug development company focused on cancer and fibrosis, announced it conditionally raised £34.2 million via a placing sale of 58 million shares at 59p to new and existing institutional investors.

Redx Pharma’s biggest shareholders are San Francisco investment firm Redmile Group LLC with a 79% stake and European venture capital firm Sofinnova Partners with about 9%.

As outlined in the launch announcement, the net proceeds of the placing will be used to fund the anticipated progression of Redx’s clinical development and research stage programmes to important value inflection points and are expected to provide the company with general and administrative working capital through 2023,” said RedX.

RedX said Redmile and Sofinnova have agreed to subscribe for 27,461,017 and 16,949,153 placing shares respectively.

In addition, existing shareholders Polar Capital LLP and Platinum International Healthcare Fund subscribed for 2,862,902, and 1,694,916 placing shares.

Directors subscribed for 542,374 placing shares and specialist healthcare investor Invus is also participating in the placing.

CEO Lisa Anson said: “At Redx we are committed to developing novel, targeted therapies for oncology and fibrotic diseases in areas of high unmet clinical need. 

“This fundraise enables us to continue to progress our clinical pipeline towards important proof-of-concept data readouts, as well as advance our promising research pipeline of differentiated drug candidates towards our goal of three additional wholly-owned IND submissions by 2025. 

Specifically, the proceeds provide Redx with a cash runway to reach several significant potential value inflection points through 2023, including topline data from both the Phase 2 clinical studies with RXC004 in Wnt-ligand dependent cancers, as well as topline data from the Phase 2a study in idiopathic pulmonary fibrosis (IPF) with RXC007.  

“In addition, it will allow us to progress RXC008 through IND submission to address fibrostenotic Crohn’s disease, where there are currently no curative treatment options available.

We would like to thank our existing shareholders for their continued strong support and are pleased to welcome a new specialist healthcare investor Invus to Redx and our commitment to creating world leading medicines to transform patients’ lives.”