Redx Pharma raises £7m to development cancer and leukaemia treatments

AIM-listed drug discovery firm Redx Pharma has raised about £7.18m in equity in order to support the development of its cancer and leukaemia treatments as it transitions to a clinical stage company.

The proceeds will help support the first human trials of two drugs that have the potential to treat various forms of cancer and leukaemia.

Chief executive Neil Murray said: "We expect our Porcupine inhibitor, RXC004, to commence first-in-human trials within the next few months. This compound shows exciting potential as a monotherapy for difficult to treat cancers, such as pancreatic, biliary and gastric cancer, and also as a combination therapy with checkpoint inhibitors, which use the body's immune system to attack tumours."

He said the company was also preparing its BTK inhibitor, RXC005, for first-in-human clinical trials by the end of the year, which has the potential to transform the treatment of patients with chronic lymphocytic leukaemia, the most common form of adult leukaemia.

The pharmaceutical placed 19.16m at a price of 37.5 pence per share, with new and existing investors , which was a 9.6% discount of the price of an ordinary share of 41.5p, and raised about £7.18m.

The placing comprised of 5.99m firm placing shares and 13.16m conditional placing shares, which were not part of the open offer.

The firm placing shares are expected to trade on AIM on 15 February and following admission the company will have a 99.69m shares in issue. A second admission will take place on 1 March for the conditional placing shares, subscription shares, value payment shares and the open offer shares.

Later on Friday, the company will post an open offer to shareholders to further raise up to £2.93m.

Shares in Redx Pharma were up 1.27% to 40p at 1207 GMT.