Redx Pharma Plc (LON:REDX) new management team is focusing its financial resources (ca.£10m) on progressing its lead candidates in oncology and fibrotic disease into the clinic. Although the first patient was treated recently in a Phase I/II proof-of-concept trial with its porcupine inhibitor RXC004, some on-target adverse events (anticipated at higher doses) were observed, which caused management to take the prudent decision to stop patient recruitment and prepare a revised protocol to the MHRA for end 2018. Meanwhile, Redx is continuing to progress its realistic development strategy with a period-end cash balance of £10.3m.
Strategy: Redx is focused on the discovery and early clinical development of small molecule therapeutics in oncology and fibrotic disease. It is also focused on taking assets through proof-of-concept clinical trials and then partnering them to the drug major(s) for late-stage development and commercialisation.
Interims: Redx reported progress on its R&D pipeline which is now focused on two key high value-added areas of cancer and fibrotic disease. Management has tightened control on costs with a lower spend in SG&A and R&D, reducing the annual cash burn by ca.£5m p.a.
RXC004 trial: A decision was made to temporarily suspend the Phase I/IIa trial with RXC004 in light of adverse events in the first patient dosed. Early data suggest a higher exposure and longer half-life in humans that could not have been predicted. A lower dose protocol is expected to be submitted in 2H’18.
New CEO appointed: As from 1 June, REDX has a new CEO, Lisa Anson, who had been President of AstraZeneca (AZN) UK since 2012. She will bring a wealth of experience, having held a variety of senior management roles at AZN in the UK and the US. Lisa is also President of the ABPI.
Investment summary: Redx Pharma Plc new management team is moving forward with a revised business plan that focuses cash resources on progressing its drug leads in oncology and fibrotic disease into early clinical development. The temporary ‘hold’ on the RXC004 clinical trial has extended these cash resources by an estimated four months. While Novartis is paving the way with Wnt inhibition, Redx is a close follower, with a potentially best-in-class compound.