Cheshire biotech Redx Pharma Plc is set to pull its shares from the London Stock Exchange’s AIM, citing liquidity constraints and saying it will attract investors more easily as a private company.
AIM is intended to help smaller companies access capital, but Redx’s chair Dr Jane Griffiths said: “Following an extensive review, the board has unanimously concluded that it is in the best interests of the company and our shareholders to delist from AIM and re-register as a private limited company.
“Despite completing some of the largest AIM capital raises for biotech companies in recent years, Redx is still liquidity constrained on AIM. As a result, we believe our current market valuation is not reflective of our track record or future potential and is not conducive to raising the level of capital required for our growing clinical portfolio.”
Redx develops small molecule medicines targeting cancer and diseases associated with fibrosis. Its lead product is in mid-stage clinical trials.
The UK has faced questions over its attractiveness as a place for life-sciences companies to grow recently, with increasing numbers of biotechs choosing to list in, or move their listings to, the US rather than in London.
In February, Redx denied a report by the Times that it was itself considering switching its listing to New York.
Griffiths insisted that the UK remains “an excellent hub for scientific discovery and drug development” however, and Redx has no plans to relocate from its headquarters at Alderley Park.
The decision to re-register as a private company will be subject to shareholder approval at a meeting on April 19.
