, the AIM-listed biotech company driving drug discovery in cancer and fibrosis, announced the sale of its pan-RAF inhibitor programme to Jazz Pharmaceuticals for up to $203 million.
The pan-RAF programme, to be bought for an initial $3.5 million, is aimed at the potential treatment of RAF and RAS mutant tumours.
As part of the deal, Redx is eligible to receive up to $203m in milestone payments from Jazz. The next milestones will be its initiation of IND enabling studies, followed by a submission to the FDA, after which Redx would be entitled to tiered royalties based on any future sales.
Shares in Redx Pharma skyrocketed to 140% following the news.
Lisa Anson, Chief Executive Officer of Redx, said: "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.”
The nature of the programme has huge potential value with its aims to overcome mutations that occur in more than one third of all cancers, making Dublin-based Jazz, with its growing oncology portfolio, an unsurprising buyer.
Ms Anson touched on the larger implications of the UK-based company selling its programme to a global firm, noting: “Jazz has a growing hematology/oncology portfolio and demonstrated success in developing and commercialising treatments for patients worldwide.”
Whilst Jazz will take on full responsibility for all future developments of the programme, Redx has agreed, in a parallel agreement, to remain in collaboration with Jazz, receiving appropriate funds to advance the programme itself through IND-enabling studies.
Robert Iannone, Executive Vice President of Research and Development at Jazz Pharmaceuticals, commented:
"We look forward to advancing the pan-RAF inhibitor program that is part of a novel class of next generation precision oncology drugs and is highly complementary to our growing R&D portfolio of early-stage, innovative, hematology/oncology therapies."
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