(Sharecast News) - Drug discovery and development company Redx Pharma has signed a new research collaboration agreement with Jazz Pharmaceuticals to discover and develop drug candidates for two cancer targets on the Ras/Raf/MAP kinase (MAPK) pathway.
The AIM-traded firm said it would be responsible for research and preclinical development activities up to investigational new drug submission.
Under the terms of the agreement, Jazz would pay Redx an upfront payment of $10m (£7.72m), followed by another $10m in the second year, provided research work was continuing.
Following delivery of an investigational new drug-ready molecule, Redx would be eligible to receive up to a further $200m from Jazz in development, regulatory and commercial milestone payments for each programme.
The first milestone would be payable on successful investigational new drug submission, with all subsequent milestones contingent on successful completion of the relevant stages of development.
In addition, for both programmes, Redx would be eligible for tiered royalties in mid-single digit percentages, based on any future net sales.
Jazz said it would own all intellectual property as it was generated, and following a successful investigational new drug submission, would be responsible for further development, manufacturing, regulatory activities and commercialisation.
The board said the research collaboration followed the previously-announced sale of Redx's preclinical pan-RAF inhibitor programme to Jazz for the potential treatment of RAF and RAS mutant tumours in July 2019.
It said the pan-RAF collaboration between the companies, following on from that sale, had been progressing well.
In addition to pursuing the collaboration, Redx said it was continuing to execute its strategy in progressing its lead oncology and fibrosis programmes, including oral porcupine inhibitor 'RXC004', targeting Wnt-driven tumours in an ongoing clinical trial, and oral ROCK2 inhibitor 'RXC007', targeting fibrosis, planned to enter the clinic in 2021.
"We are extremely pleased to announce this new collaboration with Jazz, which expands on our already strong working relationship, built through a year of collaboration on the pan-RAF inhibitor programme," said chief executive officer Lisa Anson.
"This new agreement reinforces Redx's strong position as a successful research partner and its expertise in medicinal chemistry and drug design.
"We look forward to collaborating with Jazz on new targeted therapies for patients who need them."
At 1217 BST, shares in Redx Pharma were up 10.69% at 58.11p.
11 May 2015 08:15