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LONDON (Alliance News) - Redx Pharma PLC on Monday said its loss narrowed in the first half of its current financial year as it progresses on cancer and idiopathic pulmonary fibrosis drugs development.
In addition, the drug discovery and development company said it has signed an agreement with Moulton Goodies Ltd - which has 18% stake in Redx - for a fixed rate secured loan note facility of up to GBP2.5 million. Interest is payable at 10% per annum.
Redx shares were trading 4.3% higher on Monday morning at 5.48 pence each, giving it a market capitalisation of GBP6.9 million.
The loan will further extend Redx's cash runway into the fourth quarter of 2019, it said, and will be used to augment general working capital.
The company said it intends to immediately draw down GBP1 million of the loan, and has the option to draw the remainder in up to two further tranches of no less than GBP500,000 each.
Redx said it continues to be in active discussions with shareholders and third-party healthcare specialist investors regarding longer-term funding.
In its interim results, released Monday, Redx reported a pretax loss of GBP4.1 million for the six months to the end of March, narrowed compared to GBP4.9 million a year earlier.
In the first half of financial 2019, the company did not generate any revenue, compared to GBP129,000 the year prior.
During the half-year, the company said it reinitiated the clinical trial of its lead asset RXC004 - which is an oral porcupine inhibitor aimed at treating cancer - following reformulation of the drug and receipt of regulatory and ethical clearance. The company expects initial safety and tolerability study results to become available in the second half of 2019 with full results anticipated in 2020.
Redx also highlighted that it has made substantial progress in its fibrosis initiatives. The company's lead anti-fibrotic compound, RXC006, has progressed into manufacturing and toxicity studies aimed at taking RXC006 into the clinic during the first half of 2020.
"The board and I are confident in the potential of our assets and look forward to updating the market on our financing plans as well as our operational progress," said Chief Executive Lisa Anson.