Redx Pharma PLC (AIM:REDX) said it is sellling its KRAS inhibitor programme to Nasdaq-listed Jazz Pharma Inc in a deal with a headline value of US$880 million.
Under the terms of the transaction, Redx will receive an upfront US$10 million followed by US$870 million in development, regulatory, and sales milestone payments. It will also get royalties on any future sales.
Its KRAS inhibitor programme targets one of the most challenging areas in cancer research. Mutations in the KRAS gene are prevalent across various cancer types and are notorious for their resistance to treatment.
The aim is to accelerate the development of therapies that could significantly impact the treatment landscape for patients with limited options, particularly those suffering from colorectal, pancreatic, and lung cancers.
"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," said Robert Iannone, head of R&D at Jazz.
"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 has built a reputation fo developing and outlicensing its technology, having previously partnered with Jazz as well as having deals in place with AstraZeneca and a division of Eli Lilly.