Alderley Park based drug discovery and development company, Redx Pharma, has secured £26.3 million in investment.
The investment will come from Redmile Group, a US based investor specialising in healthcare, and Parisian venture capital firm Sofinnova Partners. Redx focus their drug discovery and development research on cancer and fibrosis from their base in Alderley Park.
Redx will receive £1.3 million to extend the company’s cash runway until the end of April 2020. As well as agreeing to subscribe for 11,500,00 shares at 11.2 pence each, Redmile will also provide a £5 million short term loan as part of the deal.
Chairman of the Board of Redx, Iain Ross commented:
The Board is pleased that it is able to bring this period of uncertainty regarding an offer for the Company to an end. We believe that with Redmile and Sofinnova Partners support we will be able to secure a way forward for the Company that delivers better value for shareholders. We are delighted that MGL, which has provided the Company with robust support particularly throughout the last 3 years, continues to share our vision to build a significant enterprise and that Redmile and Sofinnova Partners, both established and sophisticated investors in the healthcare / biotech sector wish to support the Company.”
Jeremy Green, Founder and Portfolio Manager of Redmile Group, said:
Redx, with its deep expertise in medicinal chemistry, has a proven track record of designing high quality, commercially attractive molecules that have the potential to be effective drugs to treat significant unmet medical conditions. We are delighted to partner with Redx in the next phase of growth of the Company.”