Redx Pharma PLC (LON:REDX) said it will receive the first ‘milestone payment’ under its early payments agreement with AstraZeneca (LON:AZN) following the pair’s licensing deal last summer.
It will receive US$4mln of the US$17mln before the start of clinical trials of Redx-developed RXC006, which is targeting fibrotic diseases including idiopathic pulmonary fibrosis.
"We are extremely pleased that AstraZeneca is progressing RXC006 and the successful achievement of this milestone payment highlights, once again, Redx's ability to generate molecules that have significant potential as novel medicines for unmet medical needs,” said chief executive Lisa Anson.
“We look forward to AstraZeneca progressing RXC006 into clinical trials and potentially delivering to patients who need new treatment options."
Under the terms of the AZ licensing deal, Redx could receive up to US$360mln in development and commercial milestones over the course of the programme, plus tiered royalties of mid-single-digit percentages if the drug is successfully developed.
The AIM-listed drug developer is currently working on its in-house drug candidates.
Its oral porcupine inhibitor, RXC004, targeting Wnt-driven tumours, is currently undergoing a phase I clinical trial in oncology patients, while first-in-human studies on RXC007, its oral ROCK2 inhibitor, which also targets fibrosis started earlier this month.