RedX Pharma, a drug discovery and development firm, formed in 2010 previously listed on the junior London market, fell into administration in May after Liverpool City Council pursued it for a £2m unpaid loan.
The loan from the Council had been granted in a bid to support its expansion plans in the city. Although the repayment date was extended twice, first until 2015 and later to March 2017, the company had failed to make the repays in time which therefore led to the council deciding to call in the administrators and suspend the company’s shares.
Liverpool Mayor Joe Anderson said of the decision: “This is a highly regrettable situation but RedX have been given more than two years to put their house in order and establish a way to repay this investment loan.”
But according to reports, the biotech is now all set to return to the London market after administrators agreed to sell the rights to a promising treatment for leukemia to a US company for $40m (£30m).
It is now on track for a revival after the company’s administrators FRP secured a three year deal to sell a leukaemia treatment to Nasdaq-listed Loxo Oncology, providing RedX with the cash to
pay down its debts and provide working capital for further research.The drug sold to Loxo provides treatment for those with resistance to ibrutinib, the current gold standard against leukemia, and is currently in late stages of development.
