Redx Pharma has closed a $36 million Series A financing that will fund the Phase 2 clinical development of its lead drug candidate, RXC008, in patients with fibrostenotic Crohn’s disease.
The financing was led by new investor Abingworth, with participation from the British Business Bank and existing major shareholder Redmile. The deal forms part of a broader transaction with Nasdaq-listed Skye Bioscience that is expected to see Skye acquire Redx and create a combined company operating as Fibrx Therapeutics, Inc. and listed on Nasdaq.
Redx said the broader financing package, including a concurrent private placement by Skye, will deliver approximately $125 million in gross proceeds to the combined company.
The proceeds will support the advancement of RXC008, a gut-restricted pan-ROCK inhibitor designed to target fibrosis associated with fibrostenotic Crohn’s disease, into a Phase 2 clinical study.
Andrew Sinclair, Managing Director, Abingworth, said: 'At Abingworth, we look to back exceptional teams and truly differentiated biology that can fundamentally reshape patient care. Fibrostenotic Crohn’s disease is one of the largest areas of unmet need in IBD.
"The data generated by Redx with RXC008 to date, suggest that this novel pan-ROCK inhibitor could have a significant impact in mitigating FSCD pathology and we are delighted to partner with the Company and the other members of the investment syndicate to fully explore this drug candidate’s potential.”
The British Business Bank is also investing in Redx, with the company highlighting the importance of keeping its scientific operations and talent base in the UK.
“Redx is an example of the pioneering science emerging from North West England. With RXC008, the company has the potential to develop an entirely new category of treatment for a patient population that today has limited options. This investment will support Redx as it advances a potentially transformative treatment, while helping ensure that the company’s innovation, talent and intellectual property remain rooted in the UK," said Charlotte Lawrence, Managing Director and Head of Direct Equity, British Business Bank.
Despite the planned Nasdaq listing following the Skye transaction, Redx said its headquarters and research operations will remain at Alderley Park in Cheshire, described by the company as the UK's largest single-site life sciences campus.
The financing has also triggered changes to Redx’s board.
Andrew Sinclair will join as an Investor Director representing Abingworth, while Redmile’s Natalie Berner will retain her seat. Jeremy Green of Redmile will remain chair.
Bernard Coulie, CEO of Pliant Therapeutics, will join as an Independent Director. Coulie brings experience as a gastroenterologist and expertise in the clinical development of anti-fibrotic therapies — directly relevant to Redx’s focus on fibrotic diseases.
Claire Catherinet, previously an Investor Director representing Sofinnova, has stepped down.
Peter Presland and Bernard Kirschbaum will remain Independent Directors, alongside Lisa Anson, Redx’s CEO and an Executive Director.
“We are thrilled to have completed this Series A financing and to welcome new investors including Abingworth and British Business Bank as shareholders. We also appreciate the continued strong support from our major shareholder, Redmile. Importantly, the appointment of Bernard Coulie to the Board will provide invaluable clinical and strategic insights as we progress our pipeline of novel anti-fibrotic drug candidates through development," said Lisa Anson, CEO, Redx.
“This financing is an important catalyst for the Company and will allow us to commence our Phase 2 programme for our lead asset, RXC008 for patients living with FSCD, enabling us to drive the next phase of the Company’s growth.”
The company said its total number of shares in issue and voting rights now stands at 707,228,330, which shareholders should use as the denominator for calculating their holdings.
With the Series A financing closed and a potential Nasdaq listing ahead, Redx is now positioned to push RXC008 into its next stage of clinical development while retaining its UK research base.
