The British Business Bank has invested $20m in Cheshire-based biotech Redx Pharma as part of a funding round aimed at accelerating development of a potential new treatment for Crohn’s disease.
The investment will also help keep Redx’s research, intellectual property and highly skilled jobs rooted at Alderley Park, strengthening the North West’s growing life sciences cluster.
Founded in 2010 and previously based in Liverpool, Redx is a clinical-stage biotechnology company developing small-molecule medicines for fibrotic diseases. It is now headquartered at Alderley Park, the major life sciences campus near Manchester.
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The British Business Bank investment forms part of a Series A financing round led by Abingworth alongside existing major shareholder Redmile.
The new funding will allow Redx to move its lead drug candidate, RXC008, into a Phase 2 clinical study.
RXC008 is being developed to treat fibrostenotic Crohn’s disease, a complication in which fibrosis causes narrowing of the intestine. According to Redx, there are currently no approved therapies specifically addressing the condition.
The financing will also support the company’s continued presence at Alderley Park and its future research and development work there.
Charlotte Lawrence, Managing Director and Head of Direct Equity at the British Business Bank, said: “Redx is an example of the pioneering science emerging from North West England. With RXC008, the company has the potential to develop an entirely new category of treatment for a patient population that today has limited options.
“This investment will support Redx as it advances a potentially transformative treatment, while helping ensure that the company’s innovation, talent and intellectual property remain rooted in the UK.”
Redx’s portfolio also includes zelasudil, also known as RXC007, which is being investigated for its potential in interstitial lung diseases and other fibrotic conditions, as well as a programme targeting chronic kidney disease.
Lisa Anson, Chief Executive Officer at Redx Pharma plc, said: “We are thrilled to have completed this Series A financing and to welcome new investors including Abingworth and British Business Bank as shareholders and appreciate the continued strong support from Redmile. This financing is an important catalyst for the Company and will allow us to commence our Phase 2 program for our lead asset, RXC008, for patients suffering with fibrostenotic Crohn’s disease, enabling us to progress the next phase of the Company’s growth.”
The financing round was completed before Redx entered into its reverse merger agreement with Skye Bioscience.
