Redx Pharma shares soar on KRAS deal with Jazz

RedX Pharma CEO Lisa Anson

Shares of Alderley Park-based Redx Pharma rose about 20% after it announced that Dublin-based Jazz Pharmaceuticals plc will acquire Redx’s KRAS (Kirsten rat sarcoma virus) inhibitor program.

Redx said that under the terms of the agreement, Jazz will make an upfront payment to Redx of $10 million for all rights, patents, title and interest relating to KRAS “which includes G12D selective and pan-KRAS molecules.”

Further, Redx said it is eligible to receive “up to $870 million in development, regulatory and commercial milestone payments from Jazz, with the next milestone being an IND clearance from this program from the US Food and Drug Administration.”

Redx is also eligible for “tiered, mid-single digit percentage royalties based on any future net sales.”

 As part of a separate collaboration agreement, signed in parallel, Jazz will pay Redx “to perform research and preclinical development activities with the goal of completing IND-enabling studies for both KRAS profiles.”

 Redx said: “Jazz and Redx will collaborate to advance candidates through IND-enabling studies; Jazz will be responsible for all clinical development, regulatory, manufacturing and commercialization activities.”

Robert Iannone, global head of research and development of Jazz Pharmaceuticals, said: “KRAS is a well-validated oncology target and there remains a high unmet need for innovation in this area based on challenges in developing molecules to target specific KRAS mutations.

“Redx has discovered a number of preclinical KRAS candidates and we plan to leverage our collective oncology development expertise to identify and advance the most promising molecules toward the clinic.

“This transaction further expands our early-stage oncology pipeline, and we are excited to explore novel approaches to improving treatment options for cancer patients.”

Redx CEO Lisa Anson said: “Once again, our distinguished expertise in medicinal chemistry has been recognized and we are pleased to secure another strategic transaction with Jazz, with whom we have a track record of collaboration.

“This agreement will allow us to collaborate on the advancement of novel KRAS inhibitors and we look forward to supporting Jazz in progressing these candidates through IND-enabling studies.

“Partnerships remain a key pillar of our corporate strategy, allowing us to advance what we believe are differentiated molecules in areas of high unmet need, while also creating long-term shareholder value through non-dilutive funding, with the upfront milestone payment from this agreement extending our current cash runway into 2025.”