Redx offloads pan-RAF inhibitor programme to Jazz Pharmaceuticals

Redx Pharma has signed a definitive agreement with Jazz Pharmaceuticals, it announced on Wednesday, under which Jazz has acquired Redx's pan-RAF inhibitor programme for the potential treatment of RAF and RAS mutant tumours.

The AIM-traded company said Jazz would be responsible for all future development, regulatory, manufacturing and commercialisation activities.

Under the terms of the agreement, Jazz would pay Redx an upfront payment of $3.5m in cash for all rights, title and interest relating to Redx's proprietary pan-RAF inhibitor programme, including all related patents.

Redx said it would be eligible to receive up to $203m in development, regulatory and commercial milestone payments from Jazz, with the next milestones being initiation of IND enabling studies, followed by a further milestone at IND submission to the FDA.

The firm said it would also be eligible for incremental tiered royalties in mid-single digit percentage, based on any future net sales.

As part of a separate collaboration agreement, signed at the same time, Jazz would pay Redx to perform research and preclinical development services with the goal of completing IND-enabling studies.

“We are pleased to deliver on our previously announced intention to realise value from our pan-RAF research programme through entering into this strategic transaction with Jazz,” said Redx chief executive officer Lisa Anson.

“Jazz has a growing hematology [and] oncology portfolio and demonstrated success in developing and commercialising treatments for patients worldwide.”

Anson said the transaction validated Redx's “excellence” in drug design, and represented the company's second oncology deal in the last two years, following the sale of its BTK inhibitor programme to Loxo Oncology in 2017.

“We look forward to working with Jazz to advance the pan-RAF inhibitor programme.”

The $3.5m upfront payment would be used for working capital, extending the group's cash runway through to 2020.

Redx said it would continue to execute its strategy and, in particular, progress patient recruitment in the ongoing phase 1 and 2a trial of ‘RXC004’ - an oral porcupine inhibitor aimed at treating cancer driven by the Wnt pathway.

The board said it was still in “active discussions” with shareholders and third-party healthcare specialist investors regarding longer-term funding of the group.