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Trinity Delta view: Continued support from blue-chip specialist investors further underscores the strength of Redx Pharma’s assets and focused strategy. The new funds extend the cash runway beyond key 2024 catalysts and provide greater optionality around value creation from the highly attractive ROCK portfolio. H124 should see Phase IIa IPF data, which coupled to potential lift of the FDA partial clinical hold, could support further zelasudil development and indication expansion given the role of ROCK2 inhibition in multiple fibrosis-associated diseases. Initiation of the first RXC008 clinical trial adds further momentum to the fibrosis pipeline, while other assets, ie RXC004 and earlier-stage discovery programmes, offer interesting business development prospects. We continue to view zelasudil and RXC008 as central to the Redx investment case given their promise in the treatment of a variety of fibrotic conditions. We intend to update our current £363m rNPV-based valuation (equivalent to 109p/share) to reflect the financing as soon as practicable following admission of new shares.
Lighthouse
18 October 2023
Price | 26.0p |
Market Cap | £87.1m |
Primary exchange | AIM London |
Sector | Healthcare |
Company Code | REDX |
Corporate client | Yes |
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.
Analysts
Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043
Philippa Gardner
pgardner@trinitydelta.org
+44 (0) 20 3637 5042
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