Redx to Receive Milestone Payment of $9 Million

Milestone payment from global biopharmaceutical company AstraZeneca AZD5055 (RXC006) will be fourth product candidate discovered by Redx to enter clinical trials

Alderley Park, UK, 23 December 2021 - Redx (AIM: REDX), the clinical-stage biotechnology company focused on discovering and developing novel, small molecule, highly targeted therapeutics for the treatment of cancer and fibrotic disease, today announces that a milestone payment from AstraZeneca has been triggered as a result of the initiation of a Phase 1 clinical trial of AZD5055 (RXC006), a Porcupine inhibitor targeting fibrotic diseases including idiopathic pulmonary fibrosis (IPF). The milestone payment of $9 million has been triggered under the terms of the out-licensing agreement announced on 4 August 2020 and completes the previously described potential total of $17 million of early payments between deal signature and the successful commencement of the first clinical trial. Under this agreement, in addition to the $17 million in early payments, Redx may receive up to a further $360 million in aggregate development and commercial milestone payments. The Company is also eligible to receive tiered royalties of mid-single digit percentages, based on any future net sales. Porcupine inhibition is a novel anti-fibrotic approach that suppresses Wnt-ligand secretion from pro-fibrotic cells. Wnt ligands are known to be strong drivers of fibrotic mechanisms and are highly expressed in diseases such as IPF. Lisa Anson, Chief Executive Officer of Redx, commented: "We are delighted that AstraZeneca is progressing AZD5055 (RXC006) into a Phase 1 study in healthy volunteers to support the further development in IPF. The successful achievement of this milestone highlights, once again, Redx's ability to generate novel product candidates that have significant potential for diseases with high unmet medical need. This is the fourth product candidate discovered by Redx to enter clinical trials." Redx continues to execute on its strategy, progressing its lead oncology and fibrosis programmes. These include the oral Porcupine inhibitor, RXC004, targeting Wnt-ligand driven tumours, which has recently entered a Phase 2 trial in genetically selected patients with microsatellite stable metastatic colorectal cancer (MSS mCRC), and the oral selective ROCK2 inhibitor, RXC007, which targets fibrosis and commenced first in human studies in June 2021.