Redx Pharma making ‘significant advances’ on drug research
20 December 2022
Drug testing business Redx Pharma has reported increased revenues, but heavy investment in research and development saw the Alderley Park based business report a loss of £18m for the year.
The business has a cash balance of £53.9 million (30 September 2021 £29.6 million) which includes US$24 million in milestone payments earned from partnered programmes during the period. A successful share placing of £34.3 million (gross) completed in June 2022 received strong support from existing investors and added a new specialist healthcare investor, Invus, to Redx’s shareholder base. Investment in research and development activities led to increased overall expenditure of £34.4 million (FY 2021: £27.1 million).
Lisa Anson, chief executive, Redx Pharma, said: “I am very proud of our track-record of
consistently generating differentiated drug candidates and excited by the potential of the five clinical molecules we have discovered to treat significant unmet needs in cancer and fibrosis. During the period, we have continued to make strong progress across our pipeline: from our world-class discovery engine through to our clinical stage assets.
“Importantly, given the current economic and market back-drop, during the period we were also able to raise significant additional capital to bolster our balance sheet. This provides us with a cash runway into 2024 that will allow us to deliver multiple value-inflection points.”
Dr Mike Mitchell, analyst with Panmure Gordon said the results showed the business is making “significant advances” across its clinical portfolio. “We will update our view in more detail in due course, reiterating our Buy recommendation today on the back of continued progress.”
Author: Michael Taylor