The company, which restructured in March, saving £4.2mln a year, and focused its efforts on its key assets in oncology and immunology, said it has the funds to continue work on its promising pipeline following the share placing and subscription a couple of months back.
The cash position stood at £5.1mln at the end of March, up from £4.4mlm a year earlier.
Iain Ross has only been in the chair since the beginning of May but the non-executive chairman said he had been “impressed by the potential of Redx Pharma's science, approach to drug discovery and the speed with which the company has created a world class pipeline of best-in-class products”.
Ross said that following the recent re-structuring, Redx was now focused on implementing “an aggressive strategy” to accelerate the realisation of value by progressing the clinical and commercial development of our lead programmes and maximising the long term potential of the pipeline.
Dr Neil Murray, chief executive officer of Redx Pharma, added: "Redx Pharma is now optimally positioned to capitalise on the potential of its world class discovery engine with the transition to clinical development of our two best-in-class assets RXC004 and RXC005 in oncology.
“I am also excited by the potential of our pipeline in fibrosis, bringing novel medicines to areas of severe unmet need. We look forward to announcing the start of our first clinical trial with RXC004 and to building greater value for our shareholders as a clinical stage business."
As for the half-year profit & loss numbers, the company is still in the pre-revenue stage and is thus loss-making.
The loss before tax widened in the six months to to 31 March to £10.99mln from £6.64mln the year before.
“2017 is a key year for Redx with a refocusing of resources to ensure that the requisite effort is directed behind key programmes RXC004 (targeting PORC) and RXC005 (a second generation BTK inhibitor,” suggested broker Cantor Fitzgerald.
“These programmes epitomise the breadth and depth of the expertise at Redx with the BTK programme seeking to capitalise on the already well-established haematological cancer market while the PORC programme seeks to deliver a novel approach targeting difficult to treat cancers and potentially also taking Redx into the highly topical fibrosis field,” it added.
“PORC is scheduled to move into the clinic shortly which is clearly a significant achievement for the company. With the BTK programme set to follow later in 2017, Redx will be in full possession of what we believe to two very valuable (multi $bn potential) clinical stage assets,” the broker declared, as it reiterated its ‘buy’ recommendation and 105p target price.
Shares in Redx were up 1.9% at 33.5p in mid-morning trade.
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