Trading in drug discovery business Redx Pharma shares is to resume today, following a turbulent six-month period in which the business was placed into administration over a loan repayment dispute with Liverpool City Council.
Redx was founded in Liverpool before moving part of the business to Manchester Science Partnerships’ Alderley Park, where it consolidated its three trading businesses in a 74,000 sq ft facility in 2016. The business borrowed £2m from Liverpool in 2012, with the council calling time when the loan, which had been extended beyond its initial repayment period, matured at the end of March.
While in administration with FRP Advisory this summer, Redx sold patents, intellectual property and contracts associated with BTX inhibitor drug programme to US buyer Loxo Oncology for £30.5m, restoring the group to solvency and allowing all creditors to be paid in full. The business officially came out of administration last week.
Redx has reaffirmed its commitment to Alderley Park, and has a new management team in place under chairman Iain Ross, who will act as executive chairman until a new chief executive is appointed to replace founder and previous chief executive Neil Murray, who stepped down last week. In June, approval was granted for Redx’s key asset to move forward to trial stage.
Writing to shareholders, Ross said: “We are delighted that RedX has exited administration as a going concern and with a strengthened board and management team that will ensure enhanced oversight and provide relevant industry expertise as well as continuity to the business.
“The strong research base has yielded a pipeline that is now focused on developing first or best in class drugs to validated targets in cancer and fibrosis where there remain significant unmet medical needs. We look forward to entering the clinic with our lead cancer compound in the first quarter of 2018 having recently received the necessary approvals for our trial design.”