Redx Pharma PLC (AIM:REDX) said it is set to receive a US$9mln milestone payment following the initiation of a phase I trial of a drug it discovered.
The payment is due to an agreement with AstraZeneca, which was inked last summer. Under the terms of the deal, Redx received an upfront US$17mln payment, with the potential to earn a further US$360mln.
AZ triggered the pre-Christmas windfall by taking AZD5055 (formerly RXC006) into the clinic. The porcupine inhibitor drug is being developed to target fibrotic diseases including the lung condition idiopathic pulmonary fibrosis.
“The successful achievement of this milestone highlights, once again, Redx's ability to generate novel product candidates that have significant potential for diseases with high unmet medical need,” said chief executive, Lisa Anson.
This is the fourth drug from the Redx portfolio to make it into human studies.
It is also the second milestone payment to be announced this month. On December 9, the company said a US$10mln cash award was triggered under its oncology research collaboration with Nasdaq-listed Jazz Pharma, which has now moved into its second year.