Jazz Pharmaceuticals Acquires Redx Pharma's pan-RAF Inhibitor Program for Up to $203 Million

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on July 10, 2019, Irish biopharmaceutical company Jazz Pharmaceuticals entered into an agreement with UK-based biopharmaceutical company Redx Pharma (Redx) to acquire the latter’s pan-RAF inhibitor program, which is still in the preclinical research stage.

Under the terms of the agreement, Jazz will make an upfront payment of $3.5 million to Redx in exchange for ownership rights, trademark usage rights, and profits related to the project. Redx intends to use the proceeds for working capital. The company is also eligible to receive up to $203 million in development, regulatory approval, and commercial milestones, as well as royalties based on future net sales. Following the announcement, Redx’s stock price surged by 122%.

The next steps for the pan-RAF inhibitor program are to conduct preclinical studies and submit an Investigational New Drug (IND) application to the FDA. Under a separate agreement between the two companies, Redx will be responsible for the IND-enabling studies and preclinical development of the pan-RAF inhibitor program and will receive corresponding compensation.

More than one-third of cancers originate from abnormalities in the RAS-RAF-MAPK signaling pathway. Various extracellular signals are transmitted through the RAS-RAF-MAPK pathway, leading to the phosphorylation and activation of MAPK (mitogen-activated protein kinase). Phosphorylated MAPK translocates into the nucleus, where it participates in multiple physiological processes, including cell growth, development, proliferation, and differentiation. Abnormalities or hyperactivation of the MAPK signaling pathway play a crucial role in malignant transformation and tumor progression. MAPKs are significantly associated with the initiation and development of various tumors, including breast cancer, ovarian cancer, esophageal cancer, colorectal cancer, gastric cancer, and liver cancer.

Redx Pharma is currently developing a pan-RAF inhibitor program designed to address the resistance and safety issues associated with currently approved B-RAF selective drugs, thereby providing effective treatment for tumors with RAF and RAS mutations.

Jazz Pharmaceuticals, founded in 2003 and headquartered in Dublin, Ireland, is an international publicly traded biopharmaceutical company. The company is dedicated to the discovery, development, and commercialization of products in neurology and psychiatry. Its portfolio covers a wide range of conditions, including narcolepsy, homocystinuria, ethylene glycol and methanol poisoning, obsessive-compulsive disorder (OCD), social anxiety disorder, fibromyalgia syndrome, epilepsy, bipolar disorder, restless legs syndrome, and panic disorder.

As a leader in sleep medicine, Jazz Pharmaceuticals is also actively exploring innovation in hematology and oncology, developing a range of new compounds from small molecules to biologics.

Redx, founded in 2010 and headquartered in Macclesfield, East Cheshire, UK, is a drug development company. The company focuses on developing novel therapies for cancer, infections, and autoimmune diseases, and has gained recognition from the UK National Health Service (NHS) and its partners. Redx operates through three subsidiaries: Redx Oncology, Redx Anti-Infectives, and Redx Immunology.

Robert Iannone, Executive Vice President of Research and Development at Jazz Pharmaceuticals, commented on the transaction: “This pan-RAF inhibitor holds promise for treating RAF- and RAS-mutant tumors. Currently, selective B-RAF inhibitors and their combination regimens yield suboptimal therapeutic outcomes due to the emergence of acquired resistance mechanisms. We look forward to advancing our pan-RAF inhibitor program to launch next-generation precision oncology therapies, thereby expanding our innovative drug portfolio targeting early-stage hematologic malignancies and solid tumors.”

Lisa Anson, CEO of Redx Pharma, stated: “We are delighted to enter into this strategic transaction with Jazz Pharmaceuticals to realize the value of our pan-RAF research program.”

(Compiled by Tang Lulu)