19th Nov 2018 13:07
LONDON (Alliance News) - Redx Pharma PLC on Monday posted a large loss due to the absence of a big exceptional disposal gain seen a year before and said that it has appointed James Mead as its new full-time chief financial officer and executive director, effective February 1.
The drug discovery company focused on cancer and fibrosis said Mead will take over from Dominic Jackson who has served as interim CFO since November 2017 and who will step down at the end of January 2019.
Mead held a variety of senior roles over a 16-year career at pharmaceutical company AstraZeneca PLC, including chief financial officer of AstraZeneca Netherlands, finance director for multiple clinical development project teams, and director of Investor Relations.
Redx, which emerged from administration in November 2017, recorded a loss from operations of GBP10.2 million for the financial year that ended September30, versus a profit of GBP1.9 million the year before, on revenue of GBP129,000 and GBP30.47 million, respectively.
The revenue drop and subsequent loss was due to the absence of any disposal gain in the recent year. In the year prior, the company recorded a GBP30.47 million gain on the sale of its BTK inhibitor drug development programme and related IP to Loxo Oncology Inc for USD40 million. Its accounts show that exceptional gain as revenue for financial 2017.
In May 2017, two units of Redx - Redx Pharma PLC and Redx Oncology Ltd - were placed into administration as a result of the default on repaying a loan from Liverpool City Council, which was subsequently repaid in full together with accrued interest in August 2017. The units exited administration in November 2017, when control was returned to the directors.
Administration-related costs in the year totalled just GBP177,000 versus GBP2.9 million the year before.
The biotechnology company said it remains on track to recommence the Phase 1/2a clinical trial of its lead oncology asset RXC004 at a significantly lower dose, in the first half of 2019, which would generate headline results in mid-2020.
"The board is committed to strengthening the group's balance sheet in the short term and is in active discussions with shareholders, advisers, third party sector specialist investment groups and potential industry partners regarding funding and/or monetisation of early stage programme assets," said Non-Executive Chairman Iain Ross said.
Shares in Redx were trading 1.7% lower at 6.48 pence each.
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AstrazenecaREDX.L