Redx Pharma

Fundamentals intact with catalysts on the horizon

Lighthouse | 4 April 2023

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  • We are reinstating our prior Redx Pharma valuation of £461m (or $553m), equivalent to 138p per share, and our previously published forecasts (January 2023 Update) following the formal lapse of the business combination with Jounce Therapeutics (March 2023 Lighthouse). The Redx Pharma investment case remains intact, in our view, given strong fundamentals based around Redx Pharma’s differentiated medicinal chemistry expertise and the ROCK (Rho-associated coiled-coil forming protein kinase) inhibition pathway.
  • Redx’s focus is to continue to drive pipeline momentum, delivering important data from clinical stage assets over the next 12 months as well as progressing development candidates towards the clinic. The board will also continue to evaluate relevant strategic and financial opportunities for the company, that are in the best interests of shareholders.
  • The key upcoming value inflection points include data readouts for lead asset RXC007, a ROCK2 inhibitor being investigated in Idiopathic Pulmonary Fibrosis (IPF), with top line data from the Phase IIa study expected Q124, and for oncology asset RXC004, with Phase II combination data + PD-1 inhibitors in Wnt-ligand dependent solid tumours expected by end-2023. Submission of the clinical trial authorisation for GI-targeted pan-ROCK inhibitor RXC0008 for fibrostenotic Crohn’s disease is also expected by end-2023.
  • We note that end-September 2022 cash of £53.9m should be sufficient to fund planned operations through key data points across the clinical pipeline into 2024. Possible trigger of partner milestones could further extend the cash runway.

Trinity Delta view: Confirmation that the Redx-Jounce reverse merger will not take place clears the path for Redx to focus on pipeline delivery, with important data anticipated over the coming 12 months. While the business combination had strategic merit, providing additional funding and a NASDAQ-listing, we continue to believe that the Redx investment case remains intact. Therefore, following the formal lapse of the proposed business combination with Jounce Therapeutics, we reinstate our prior Redx valuation and forecasts. Full details on our methodology can be found in our January 2023 Update. Our Redx valuation is £461m (or $553m), equivalent to 138p per share.


4 April 2023

Market Cap£109.5m
Primary exchangeAIM London
Company CodeREDX
Corporate clientYes

Company description

Redx Pharma specialises in the discovery and development of small molecule therapeutics, with an emphasis on oncology and fibrotic diseases. It aims to initially progress them through proof-of-concept studies, before evaluating options for further development and value creation.


Lala Gregorek
+44 (0) 20 3637 5043

Philippa Gardner
+44 (0) 20 3637 5042


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