Suspension lifted from Redx shares as it exits administration

Trading in Redx Pharma shares restarted at midday on Monday, after the company announced in 3 November that it had successfully come out of administration as a going concern.

The AIM-traded firm also published a letter to shareholders, including a strategic update as well as details on its newly-strengthened board and management team.

It said it was now focused on the discovery and development of “first in class” or “best in class” novel drugs to significant commercial targets in cancer and fibrosis.

The newly-strengthened board and management team would provide “enhanced” oversight and relevant industry expertise, the company claimed, as well as continuity.

Iain Ross had moved from being non-executive to executive chairman, with Neil Murray stepping down as CEO and a director of the company.

Dominic Jackson was appointed chief financial officer and executive director, and Peter Presland was appointed as non-executive director and chair of the audit committee.

Presland was replacing Norman Molyneux, a long-standing non-executive director.

Redx also explained that its “strong” research base had yielded a “refocused” development pipeline of two development programmes and five research programmes.

It confirmed a phase I trial of its lead cancer asset was to start in the first quarter of 2018, with 1a results estimated for the second half of that year.

The company said that asset had “best-in-class” potential, addressing a “blockbuster” commercial opportunity.

Its lead fibrosis candidate could be the first drug specifically targeting inflammatory bowel disease-related fibrosis, the board claimed, with that addressable market estimated to be three million patients.

The company’s opening balance sheet had £13.6M of cash, with no liabilities nor loan facilities outside of those necessary for the normal course of business, coupled with a reduced cost base, providing a “cash runway” into early 2019.

“We are delighted that Redx has exited administration as a going concern and with a strengthened board and management team that will ensure enhanced oversight and provide relevant industry expertise as well as continuity to the business,” said executive chairman Iain Ross.

“The strong research base has yielded a pipeline that is now focused on developing first or best in class drugs to validated targets in cancer and fibrosis where there remain significant unmet medical needs.”

Ross said the board was looking forward to entering the clinic with its lead cancer compound in the first quarter of 2018, having recently received the necessary approvals for its trial design.

He said the company’s aim was to progress its pipeline candidates - where warranted - to clinical proof-of-concept in order to build “significant” shareholder value.

“Importantly, the sale of the BTK inhibitor programme to Loxo Oncology has provided the company with a balance sheet that, when coupled to a reduced cost base, creates a cash runway until early 2019 that will allow Redx to pass through a number of significant milestones.

“We are excited by our future prospects and look forward to the resumption of trading of our shares on AIM later today.”