Redx Pharma PLC (LON:REDX) has answered the worldwide call to tackle the impending antibiotic crisis.
Shares soared 18% this week after it announced a massive breakthrough that could lead to the first novel class of broad-spectrum antibiotics in 30 years.
In vivo testing confirmed that Redx’s novel compounds (bacterial topoisomerase inhibitors) were highly effective against certain drug resistant strains of bacteria.
Better than the current “last resort”
The group said this could have important implications for drug resistant infections such as E. coli and Pseudomonas, responsible for critical illnesses such as pneumonia and blood poisoning.
“In 2014 there were over 750,000 cases of hospital-acquired pneumonia in the US and Europe. These infections are the primary cause of death in intensive care units, with mortality rates amongst ventilated patients reaching 50%,” explained Redx chief executive Neil Murray.
In the pre-clinical study, Redx achieved a significant decrease in bacterial infection levels against a multi-drug resistant superbug strain when compared with the current “last resort” drug.
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A fundamental threat to global health
Over- and improper use has meant a growing number of bacteria are becoming resistant to most available antibiotics.
It is estimated that drug-resistance accounts for more than half a million deaths globally each year and is expected to rapidly increase. A recent study suggests that number could rise to around 10mln by 2050, costing the global economy up to US$100trn.
Last week, UN secretary general Ban Ki-moon said antibiotic resistance was a “fundamental threat” to global health.
All 193 member states agreed to combat the proliferation of antibiotic resistance in a declaration signed last Wednesday.
Fighting cancer too
Elsewhere, Redx is making leaps and bounds in the field of cancer immunotherapy, a new class of drug treatment which harnesses the body’s own defences.
Earlier this month, its flagship cancer treatment showed promise as part of a combination therapy to treat cancer.
Redx’s Porcupine inhibitor seemed to improve the immune system response of some cancer models when used in combination with an existing immunotherapy.
House broker Cantor Fitzgerald said Redx's cancer treatment was potentially “best in class” and that Redx had a “potent combination” of assets.
Broker sees potential in assets
Potent indeed as shares are up almost 20% on Tuesday’s news to 60.8p. In the space of a month, the share price has doubled and Cantor reckons that’s just the start, expecting a potential 300% upside with a target price of 105p.
“These data once again demonstrate the broad capability that Redx possesses to deliver potentially first-in-class as well as best-in-class therapies,” said Cantor’s Brian White, reiterating a “buy” recommendation. White once again cited the potential of Redx’s key assets.