All that Jazz: $3m milestone boosts cash and confidence
Update | 7 September 2021
The initiation of IND-enabling studies for Jazz Pharmaceutical’s pan-RAF inhibitor JZP815 has triggered a $3m milestone payment to Redx Pharma. This milestone provides external confirmation that this novel programme – one of Redx’s three partnership deals – continues to advance towards the clinic with the potential of earning future milestones, further solidifying Redx’s financial resources and supporting increased R&D investment in key assets through to end-2022. This cash runway covers several important value inflection points, including Phase II data for RXC004 its lead in-house oncology programme, and the start of Phase II trials for RXC007 in fibrosis. Ahead of further clinical updates, our rNPV-based valuation is £350.7m, equivalent to 128p/share (86p fully diluted).
|Year-end: September 30||2019||2020||2021E||2022E|
|Adj. PBT (£m)||(7.5)||(9.5)||(19.9)||(26.2)|
|Net Income (£m)||(4.3)||(9.2)||(20.5)||(26.8)|
|Adj. EPS (p)||(4.0)||(5.6)||(7.7)||(9.4)|
7 September 2021
|Shares in issue||274.8m|
|12 month range||46.98-93.70p|
|Primary exchange||AIM London|
Redx Pharma specialises in the discovery and early clinical development of small molecule therapeutics, with an emphasis on oncology and fibrotic disease. Typically, these are progressed through proof-of-concept studies and then partnered for further development. The strategy has been validated by several collaborations.
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