Redx Pharma

Jazz Pharmaceuticals $5m milestone triggered

Lighthouse | 15 June 2022

Share this note

  • Redx Pharma will receive a $5m milestone from Jazz Pharmaceuticals as the FDA has cleared JZP815’s IND (Investigational New Drug) application enabling the start of clinical trials. JPZ815 will be the fifth clinical stage asset discovered using Redx’s well proven medicinal chemistry expertise.
  • JPZ815 is a precision pan-RAF inhibitor, with a differentiated mechanism of action, being developed for RAS and RAF mutant tumours. It was designed to overcome the resistance mechanisms to currently approved B-RAF selective drugs. The RAF kinases are an integral part of the RAS-RAF-MAPK pathway, with B-RAF mutations most often seen in the clinic. Promising preclinical data were recently presented at the AACR (American Association for Cancer Research) conference in March.
  • Jazz acquired JPZ815 from Redx in July 2019, with Jazz paying an upfront fee of $3.5m and Redx eligible for up to a further $203m in success-based development, regulatory, and commercial milestones, and mid-single digit royalties on eventual net sales. This latest milestone follows $3m that was triggered in September 2021 on initiation of IND-enabling studies.
  • Redx also has another research collaboration with Jazz to discover and develop drug candidates for two oncology targets on the RAS/RAF/MAPK pathway, where Redx is responsible for pre-IND development activities. Our February 2022 Outlook provides more detail on the Jazz programmes.
  • The $5m milestone receipt, together with May’s oversubscribed £34.3m (gross) equity raise and existing resources, means management has the cash to support the lead in-house development programmes, RXC004 (a Porcupine inhibitor for genetically selected cancers) and RXC007 (a ROCK2 inhibitor for major fibrotic diseases) to key clinical data points. Redx also has RXC008 (a novel GI-targeted ROCK inhibitor), which will be progressed through to IND for fibrostenotic Crohn’s disease.

Trinity Delta view: The Jazz milestone is a welcome boost to recently enlarged cash resources but, more importantly, is further tangible evidence of the progress being achieved across a broad front. Redx Pharma has always sought to maximise the value of its discovery programmes, but with the inherent risks managed actively. This has resulted in a well-balanced clinical pipeline, with a mix of in-house and partnered programmes. It is the expected progress from these that should provide a stream of news flow over the next 12-18 months. We view May’s impressive equity raise as a testament to the strength of the investment case, which supports a wider appreciation of the equity story. Our rNPV model is currently under review following this placing and we will issue a revised valuation as soon as practicable.


15 June 2022

Market Cap£202.7m
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 potential value creation.


Lala Gregorek
+44 (0) 20 3637 5043

Franc Gregori
+44 (0) 20 3637 5041


Trinity Delta Research Limited (“TDRL”; firm reference number: 725161), which trades as Trinity Delta, is an appointed representative of Equity Development Limited (“ED”). The contents of this report, which has been prepared by and is the sole responsibility of TDRL, have been reviewed, but not independently verified, by ED which is authorised and regulated by the FCA, and whose reference number is 185325.

ED is acting for TDRL and not for any other person and will not be responsible for providing the protections provided to clients of TDRL nor for advising any other person in connection with the contents of this report and, except to the extent required by applicable law, including the rules of the FCA, owes no duty of care to any other such person. No reliance may be placed on ED for advice or recommendations with respect to the contents of this report and, to the extent it may do so under applicable law, ED makes no representation or warranty to the persons reading this report with regards to the information contained in it.

In the preparation of this report TDRL has used publicly available sources and taken reasonable efforts to ensure that the facts stated herein are clear, fair and not misleading, but make no guarantee or warranty as to the accuracy or completeness of the information or opinions contained herein, nor to provide updates should fresh information become available or opinions change.

Any person who is not a relevant person under section of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom should not act or rely on this document or any of its contents. Research on its client companies produced by TDRL is normally commissioned and paid for by those companies themselves (‘issuer financed research’) and as such is not deemed to be independent, as defined by the FCA, but is ‘objective’ in that the authors are stating their own opinions. The report should be considered a marketing communication for purposes of the FCA rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. TDRL does not hold any positions in any of the companies mentioned in the report, although directors, employees or consultants of TDRL may hold positions in the companies mentioned. TDRL does impose restrictions on personal dealings. TDRL might also provide services to companies mentioned or solicit business from them.

This report is being provided to relevant persons to provide background information about the subject matter of the note. This document does not constitute, nor form part of, and should not be construed as, any offer for sale or purchase of (or solicitation of, or invitation to make any offer to buy or sell) any Securities (which may rise and fall in value). Nor shall it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information that we provide is not intended to be, and should not in any manner whatsoever be, construed as personalised advice. Self-certification by investors can be completed free of charge at TDRL, its affiliates, officers, directors and employees, and ED will not be liable for any loss or damage arising from any use of this document, to the maximum extent that the law permits.

Copyright 2022 Trinity Delta Research Limited. All rights reserved.