UK firm forced to sell assets to repay local government debt

31 July 2017

UK biotech firm Redx Pharma (AIM: RDX) has agreed to sell its technology and drug discovery program to Loxo Oncology (Nasdaq: LOXO) for $40 million, to pay off a £3.5 million ($4.6 million) debt to a local government body.

Redx lent the money to Liverpool council five years ago, which earlier this year forced the company into administration in order to secure repayment, resulting in the suspension of the London-listed firm’s shares.

Liverpool mayor Joe Anderson said at the time: “This investment loan was given in good faith and we have a duty to the public to ensure their money, especially during such financial difficulties, is protected.”

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