Redx soars on plan to sell pan-RAF inhibitor program

UK-based Redx Pharma (AIM: REDX) saw its shares more than double in morning trading, after it announced a definitive agreement with the USA’s Jazz Pharmaceuticals (Nasdaq: JAZZ) for an asset sale.

Under the terms of the deal, Redx, which in November 2017 emerged from administration, will sell its pan-RAF inhibitor program for the potential treatment of RAF and RAS mutant tumors. Jazz will be responsible for all future development, regulatory, manufacturing and commercialization activities.

Under the terms of the agreement, Jazz will pay Redx an upfront payment of $3.5 million in cash for all rights, title and interest relating to Redx’ proprietary pan-RAF inhibitor program, including all related patents. Redx is eligible to receive up to $203 million in development, regulatory and commercial milestone payments from Jazz, with the next milestones being initiation of investigational new drug (IND) enabling studies, followed by a further milestone at IND submission to the Food and Drug Administration. Redx is also eligible for incremental tiered royalties in mid-single digit percentage, based on any future net sales. Redx shares were up a staggering 135.2% at 14.70 pence by 10.30 BST.