Redmile, Sofinnova invest £26.3m in Redx

Katharine Hidalgo
02 March 2020

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Redmile Group and Sofinnova Partners will provide ТЃ26.3m in fresh capital to listed biotechnology company Redx Pharma.

US-based healthcare investor Redmile is currently drawing equity from Redmile Biopharma Investments I, which closed on $218.27m in July 2018.

The firm has agreed to subscribe for 11.5 million new ordinary shares at 11.2 pence per share, amounting to a total of £1.288m for a stake of around 6%. This funding will be used for general working capital purposes. Redmile will also provide £5m of short-term funding.

Both Redmile and Sofinnova intend to invest £20m in the form of a convertible loan, though the terms of the loan have not yet been agreed.

Sofinnova is currently investing from its €333m Sofinnova Capital IX vehicle, which closed in October 2019.

Previous funding
The Northwest Regional Development Agency, Jon Moulton and the European Commission invested £1.9m in 2010. The Regional Growth Fund then provided a grant of £4.7m in 2012.

The company raised £10m from its IPO on the AIM segment of the stock exchange in 2016.

It received an undisclosed investment from Seneca Partners in 2017 and later that year, received a $1m grant from Carb-X.

Company
Redx Pharma is a drug discovery and development company formed in 2010. It is focused on improving the characteristics of existing drug classes to create new drugs in the areas of cancer, infection and autoimmune disease. Based in Macclesfield, it operates three subsidiaries: Redx Oncology launched in April 2012, Redx Anti-Infectives launched in April 2013 and Redx Immunology launched in May 2015.

For the year ending on 30 September 2018, the company reported an operating loss of £10.1m from revenues of £129m.

People
Redmile Group – Jeremy Green (founder, portfolio manager).