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Redx Pharma Shares Were Muted on Annual Results. Here’s Why.

Simon Mugo trader
Updated 20 Dec 2022

The Redx Pharma PLC (LON: REDX) share price had a muted reaction to the release of the company’s financial results for the year ended September 30, 2022, earlier today, as investor interest in the company’s shares remained low.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The clinical-stage biotech company made significant progress in some of its commercial partnerships, generating $24 million in milestone payments from its partnership with AstraZeneca and Jazz Pharmaceuticals. 

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

Investors’ muted reaction to the upbeat full-year results was mainly because most of the report’s highlights had been reported earlier in the year when they happened. 

The company received a $10 million milestone payment from Jazz Pharmaceuticals in December 2021 after making progress in its oncology research partnership to study the MAPK pathway. 

During the same month, Redx Pharma received a $9 million payment from AstraZeneca after phase I trials of its RXC006 drug candidate, now known as AZD5055. 

Lastly, in June 2022, Redx received a $5 million milestone payment from Jazz Pharmaceutical after the Us Food and Drug Administration approved its IND application for JZP815, a pan-RAF inhibitor. 

Redx Pharma also highlighted the multiple clinical trials that had commenced during the 2022 financial year, such as the PORCUPINE phase II clinical trials of its RXC004 drug, an oral Porcupine inhibitor for the targeted treatment of Wnt-ligand dependent cancers.

The phase 2 clinical trials tested RXC004’s effectiveness against multiple cancers, including select microsatellite stable metastatic colorectal cancer (MSS mCRC), pancreatic, and biliary cancer. 

Lisa Anson, Redx Pharma’s CEO, said: “I am very proud of our track record of consistently generating differentiated drug candidates and excited by the potential of the five clinical molecules we have discovered to treat significant unmet needs in cancer and fibrosis. During this period, we have continued to make strong progress across our pipeline: from our world-class discovery engine to our clinical-stage assets. Our two lead assets, RXC004 and RXC007, are now in Phase 2 clinical studies, and we look forward to reporting results from these studies during the next calendar year.”

The company had £53.9 million in cash at the end of September and is well capitalised to continue funding its operations. 

*This is not investment advice. 

The Redx Pharma share price.

The Redx Pharma share price fell 1.41% to trade at 59.2p, from Monday’s closing price of 60.00p.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading