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viewRedx Pharma PLC

Redx Pharma focused on cancer and fibrosis treatment

Snapshot

  • Cancer drug in the clinic 
  • Promising fibrosis treatments targeting large markets
  • Redmile owns 91% following mandatory offer in May
researcher at microscope

Quick facts: Redx Pharma PLC

Price: 35 GBX

AIM:REDX
Market: AIM
Market Cap: £66.5 m
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What the company does 

Redx Pharma Plc (LON:REDX) is an early-stage drug developer that is bringing through treatments for cancer and fibrosis.

Its lead asset, RXC004, is part of a potentially breakthrough group of cancer drugs called Porcupine inhibitors. They work by dialling down the Porcupine protein, which is the control switch for the Wnt pathway – known to be heavily involved in cell growth and division. Now, not all cancers are driven by the Wnt pathway, but the hope is that RXC004 will inhibit the growth of those which are.

Interestingly, there’s a growing bank of research that suggests Porcupine inhibitors may also be very effective in tandem with checkpoint inhibitors such as anti-PD-1s, which lower or break cancer’s defence against the body’s immune system. That’s why Redx plans to assess the drug in combination with a checkpoint inhibitor further down the line, something Swiss giant Novartis is doing with its Porcupine inhibitors.

In parallel it is developing potential fibrosis treatments. RXC006 is designed to tackle a condition called idiopathic pulmonary fibrosis (IPF), a type of chronic lung disease. ROCK2 has been developed to treat non-alcoholic liver disease, while it is also targeting Crohn’s Disease-related fibrosis.

 

RXC004

After a false start, Redx is resuming its phase I clinical trial. The trial is split in two: phases Ia and Ib. The former is focused on finding the safest most effective dose, while the latter will seek efficacy data.  The phase Ia will take place over the next 12-18 months, working with advanced cancer patients. The lead investigator is Dr Natalie Cook, of the Christie Hospital, Manchester. The other centres are The Marsden and Guys (London), Oxford and Newcastle.

 

Value kickers

  • Second fibrosis drug candidate RXC007 to start trials in 2021

  • Fibrosis treatments target significant commercial markets

  • Phase 1-ready idiopathic pulmonary fibrosis candidate ready to enter the clinic in 2020

How it's doing

At the end of April, the company said the majority of its operations in the discovery phase, preclinical phase, and in ongoing research collaborations were continuing to plan despite restrictions to contain the pandemic.

Recruitment to its phase 1/2a clinical trial of RXC004, an oral porcupine inhibitor, has been halted in line with the policy of the five recruiting hospital centres in the UK to prioritise resources for the NHS.

Redx said it supported the decision, but it may cause a delay of up to six months to the completion of this trial and commencement of phase two expansion studies, scheduled for the second half of 2020.

Redmile takeover

Redx's majority shareholder Redmile increased its stake to 91.76% from 58.25% in May.

On 13 March, the hedge made a mandatory offer to acquire the entire issued capital for 15.5p per share, with shareholders representing 33.51% of the pharma company agreeing to sell to take its stake up 91.76%.

It was a counter-offer to Yesod Bio-Sciences’ proposal worth 15p per share after the market closed on 12 March.

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Redx Pharma 'on a firm footing and able to drive its business plan'...

Redx Pharma PLC's (LON:REDX) Lisa Anson caught up with Proactive London's Andrew Scott after announcing they've raised US$30mln via the issue of convertible loan notes. Funds Redmile Group and Sofinnova Partners are putting up US$19mln and US$10mln respectively. The cash will be used to...

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