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(Alliance News) - Redx Pharma PLC said Tuesday it has been in discussions with Samuel Waksal, the founder of ImClone Systems Inc and Kadmon Pharmaceuticals Inc, about a possible cash takeover offer.
Redx Pharma shares were up 20% in London at 7.95 pence each on Tuesday.
The drug discovery and development company said there was as yet no "firm intention" to make an offer and there can be no certainty that the offer will be made.
Waksal has until 1700 GMT on January 28 to make a firm offer, the company said.
Redx also said it has been in discussions with shareholders and third-party healthcare specialist investors regarding longer-term funding of the company, in order to advance its medicines for cancer and fibrosis to the next stage trials.
Therefore the company is asking shareholders for permission to agree to the capitalisation of a GBP2.5 million loan into ordinary shares at 5.25p per share.
Back in June, the company had signed a loan 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.
Iain Ross, chair of the board of directors of Redx Pharma said: "We believe that this short-term funding solution will allow us time to secure the necessary longer-term funding that will enable us to advance our innovative pipeline of novel precision medicines for cancer and fibrosis, in particular to complete our ongoing phase 1/2b programme with RXC004 and initiate phase 1 trials with one of our fibrosis programme."
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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