Clinical-stage biotech Redx has raised £34 million in funding to help it progress its pipeline of therapeutics targeting cancer and fibrotic disease.
Redx raised the funding through a Bookbuild process in which a company generates investor demand when raising capital in an attempt to achieve the best price for selling shares.
As such, Redx placed 58,070,956 Placing Shares at the Issue Price of 59 pence per share, to both new and existing institutional investors.
Proceeds raised will be used to fund Redx’s clinical development and research stage programmes in the hope that these can generate important inflection points which will provide the company with capital through 2023.
This includes topline data from Phase II clinical studies assessing the company’s small molecule inhibitor RXC004 which is targeting Wnt-ligand dependent cancers; its idiopathic pulmonary fibrosis (IPF) small molecule and the progression of its inhibitor therapy targeting Crohn’s Disease-associated fibrosis.
Lisa Anson, Chief Executive Officer of Redx, said: “At Redx we are committed to developing novel, targeted therapies for oncology and fibrotic diseases in areas of high unmet clinical need. This fundraise enables us to continue to progress our clinical pipeline towards important proof-of-concept data readouts, as well as advance our promising research pipeline of differentiated drug candidates towards our goal of three additional wholly-owned IND submissions by 2025.
Specifically, the proceeds provide Redx with a cash runway to reach several significant potential value inflection points through 2023, including topline data from both the Phase 2 clinical studies with RXC004 in Wnt-ligand dependent cancers, as well as topline data from the Phase 2a study in idiopathic pulmonary fibrosis (IPF) with RXC007. In addition, it will allow us to progress RXC008 through IND submission to address fibrostenotic Crohn’s disease, where there are currently no curative treatment options available.
We would like to thank our existing shareholders for their continued strong support and are pleased to welcome a new specialist healthcare investor Invus to Redx and our commitment to creating world leading medicines to transform patients’ lives.”
Natalie Berner, Managing Director, Redmile Group LLC, said: “We are pleased to continue to support the Redx team and their established clinical pipeline, drug discovery engine, and strong partnerships.”
Tom Burt, Partner, Sofinnova Crossover Strategy, added: “Existing investors are delighted to further support Redx in this financing and we welcome a new specialist investor. Closing such a placing, despite challenging markets, is evidence of Redx’s promising pipeline candidates, leading science base and excellent team.”