Statement Following Jounce Therapeutics Announcement of a Definitive Merger Agreement with Concentra Biosciences and Withdrawal of their Recommendation for the Business Combination with Redx
pharmafile | March 27, 2023 | News story | Business Services |
Alderley Park, UK 27 March 2023 Redx Pharma (“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, acknowledges the announcement made today by Jounce Therapeutics, Inc. (NASDAQ: JNCE) (“Jounce”), that it has entered into a definitive merger agreement to be acquired by Concentra Biosciences, LLC. The Board of Directors of Jounce has therefore withdrawn its recommendation for the proposed all-share merger transaction with Redx announced on 23 February 2023 (the “Business Combination”) and has notified Redx of the termination of the co-operation agreement between Redx and Jounce in respect of the Business Combination.
Dr Jane Griffiths, Chair of the Board of Redx commented “The Board remains fully confident in the future of Redx despite being disappointed that the Board of Jounce has now decided to recommend a cash offer for their company at this late stage. We strongly believe in the potential of our clinical stage assets and pipeline of development candidates. Whilst the offer for Redx has not formally lapsed under the UK Takeover Code, the Board will consider all options available to it in line with our strategy.”
Redx has built a clinical stage portfolio of drug candidates, with Phase 2a data in IPF from the lead asset, RXC007, a next-generation selective ROCK2 inhibitor, expected in Q1 2024. Additionally, the Company continues to progress RXC008, a GI-targeted ROCK inhibitor, as a potential first-in-class treatment for fibrostenotic Crohn’s disease. In the oncology pipeline, RXC004, an orally available porcupine inhibitor, is also progressing through Phase 2 trials in combination with immune check-point inhibitors in hard-to-treat, advanced solid tumours, with top-line data expected later this year.
Further announcements will be made in due course as appropriate.
Defined terms have the meaning given to them in the Rule 2.7 announcement.
The person responsible for the release of this announcement on behalf of the Company is Claire Solk, Company Secretary.
