Redx Pharma agrees to $425m all-share merger with Jounce Therapeutics
pharmafile | February 23, 2023 | News story | Research and Development |
UK-based clinical-stage biotech company Redx Pharma has agreed to a $425m all-share merger with US drug research business Jounce Therapeutics. This figure comes from Redx’s fully diluted market capitalisation of $294m (£244m) and Jounce’s expected cash and cash equivalents at time of purchase.
Redx is focused on the discovery and development of treatments for novel cancer and fibrotic diseases, and cancer-associated fibrosis. Its research looks at novel, small molecule, targeted therapies. Jounce Therapeutics looks at immunotherapies as treatments for cancer ‒ enabling the immune system to attack tumours and aiming for long-term benefits through a biomarker approach.
As well as its current R&D site at Alderley Park, UK, Redx will expand to Massachusetts, US, with another drug discovery and clinical development team. This builds concretely on Redx’s and Jounce’s promise to create a ‘transatlantic organisation’ ‒ which will be known as Redx Inc ‒ that will be a clinical pipeline with multiple inflection points in the close- to mid-term range.
Lisa Anson, chief executive at Redx Pharma, said: “By combining Redx’s proven track record in small molecule drug discovery and development with Jounce’s expertise in biologics and immunotherapy, we will establish a world-class biotech company with a robust pipeline, aimed at developing therapeutics for cancer and fibrotic disease. RXC007, our next-generation ROCK2 inhibitor, will lead the clinical pipeline, and we will now further investigate opportunities for this asset in cancer-associated fibrosis and other interstitial lung diseases. While the majority of the combined group’s operations, and its headquarters, will be at Alderley Park in the UK, we believe that listing solely on Nasdaq is the most efficient way to enable us to access a deep pool of risk capital and engage with specialist global investors to support our future growth.”
Richard Murray, chief executive and president of Jounce Therapeutics, said: “I am very proud of the work we have achieved at Jounce and today’s news is testament to the accomplishments of our team’s efforts. We are pleased that many of our employees will join the combined group and continue to focus on bringing much-needed alternatives to patients. Additionally, we are pleased that Redx will continue to advance certain of our early discovery programmes. With a focus on cancer and fibrosis, and a strong scientific basis for discovery and development programmes in those areas, we believe that the new company will be well-positioned to succeed.”
James Spargo
