In its full year results yesterday, the drug maker reported progress of its development of its treatments.
The group's pipeline includes the Porcupine RXC004 treatment for pancreatic, biliary and gastric cancer, which will enter its first in-human studies following a clinical trial application (CTA) submission in the second quarter.
Redx is also developing leukaemia treatment BTK RXC005 and plans to make an investigational new drug application and CTA towards the end of 2017.
Cantor Fitzgerald reiterated a ‘buy’ rating on the stock and a target price of 105.0p, saying 2016 has been an “important year for Redx with solid process from the discovery engine” with molecules in focus areas of oncology and immunology.
“The first of these (a porcupine inhibitor) has overcome limitations which have blighted this approach (wnt pathway) elsewhere and is scheduled to enter the clince in mid-2017 targeting difficult to treat cancers.
“Elsewhere the BTK programme is progressing towards the clinic and remains a highly attractive asset in a very lucrative area (haematological cancers).”
Cantor said its recent £12mln fundraising has provided Redx with sufficient funds to allow it to deliver its lead RXC004 into clinic trials as well as progress the development of RXC005, which is expected to enter the clinic in early 2018.
The broker also welcomed Redx’s restructuring, which includes plans to cut jobs by 60%, to achieve estimated cost savings of about £4.2mln.
“Redx has now refocused, is aiming to material reduce headcount (circa 60%), principally to capitalise on its clinical assets, while retaining its impressive research engine and funding its anti-infectives research through external collaborations.”