Receipt of $4m milestone for RXC006 progress
Lighthouse | 17 June 2021
Trinity Delta view: The $4m AstraZeneca milestone is an apt reminder of the momentum being generated and the quality of the investment case. Redx Pharma has an acknowledged expertise in medicinal chemistry which underpins its discovery platform and has created, in our view, an attractive, and well balanced, clinical portfolio. The two lead in-house assets, porcupine inhibitor RXC004 in oncology and ROCK2 inhibitor RXC007 for fibrosis indications, are both in the clinic and on track to progress to key proof of concept trials. The partnered assets are also progressing towards the clinic as evidenced by partner-derived revenues such as this RXC006 milestone. A solid balance sheet with £39.9m in cash resources means Redx Pharma is funded through to end-2022; a period that covers a number of important value-inflection points. Our rNPV-based valuation, based on conservative assumptions, is £350.7m, equivalent to 128p/share (86p fully diluted).
17 June 2021
|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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