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(Alliance News) - Redx Pharma PLC said Wednesday it has signed a definitive agreement with Nasdaq-listed Jazz Pharmaceuticals PLC to sell its pan-RAF inhibitor programme.
Shares in the cancer and fibrosis drug discovery company almost doubled in morning trade in London, increasing to 12.25 pence each after closing Tuesday at 6.25p. Earlier, the stock set a new 52-week high of 18.00p.
As part of the agreement, Redx will receive an upfront payment of USD3.5 million in cash but is eligible to receive up to USD203 million in development, regulatory and commercial milestone payments.
The next milestone is the initiation of investigational new drug studies, followed by an IND submission to the US Food & Drug Administration. Redx also is eligible for incremental tiered royalties in "mid-single digit" percentage, based on any future net sales.
"We are pleased to deliver on our previously announced intention to realise value from our pan-RAF research programme through entering into this strategic transaction with Jazz. Jazz has a growing hematology-oncology portfolio and demonstrated success in developing and commercialising treatments for patients worldwide," Redx Chief Executive Lisa Anson said.
She continued: "This transaction validates Redx's excellence in drug design and represents the company's second oncology deal in the last two years, following the sale of our BTK inhibitor programme to Loxo Oncology in 2017. We look forward to working with Jazz to advance the pan-RAF inhibitor programme."
Redx said the upfront payment will be used for working capital, extending its cash runway through to 2020.
The company said it will continue to progress its patient recruitment for its ongoing phase 1/2a trial of RXC004, an oral porcupine inhibitor aimed at treating cancer driven by the Wnt pathway.
"The board continues to be in active discussions with shareholders and third-party healthcare specialist investors regarding longer-term funding of the group. The company will provide further updates in due course," Redx added.
