Shares of British pharmaceutical company Redx Pharma (LON: REDX) today surged 280% after the company revealed that it had signed a licensing deal with AstraZeneca for the commercial development of RXC006, a porcupine inhibition treatment for fibrotic diseases.
Redx stock traded as high as 95p having closed yesterday’s session at 25p, a huge 280% gain.
The company is set to receive up to $17 million as part of initial payments and could earn a further $360 million as various development and commercialisation milestones are achieved.
The firm is also eligible for tiered royalty payments set at mid-single-digit percentages based on future net sales figures.
The agreement will see AstraZeneca take RXC006 into clinical development with the end goal of treating fibrotic diseases such as idiopathic pulmonary fibrosis.
According to Redx Pharma, the RXC006 drug takes an innovative approach to treating fibrotic diseases.
Redx Pharma share price