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Investors back Redx Pharma launch

Redx Pharma, a UK based bioscience company, has been launched with a GBP1.9m investment package from the public and private sector. 

Support has been provided by the NWDA’s Northwest Interim Venture Capital Fund, which is managed by YFM Private Equity, and includes backing from the European Regional Development Fund.

A number of private investors have also taken a stake, including the venture capitalist Jon Moulton and several investors from the North West, Yorkshire and London.

Redx Pharma will develop therapeutic remedies based on existing classes of drugs, structurally modifying them to create new proprietary medicines. Benefits for patients will include fewer side effects, greater efficacy and ease of use for people.

As part of the investment, Redx Pharma has acquired the assets of Bradford Pharma and will take over its operation which has been based at Merseybio, the incubator unit owned by the University of Liverpool, since 2007.

The syndicate of private investors was brought together by Acceleris, the Manchester-based corporate finance house, which is also a founding shareholder of Redx Pharma. 

Acceleris director Norman Molyneux says: “Congratulations are in order – this is a positive development for the North West biotech sector and we are all excited about where Redx Pharma goes from here. Deals of this nature have been scarce over the last 18 months and it’s fair to say the Enterprise Investment Scheme – a tax incentive to encourage support for small companies – was instrumental in helping us put the package together.”

The Redx Pharma management team is led by Neil Murray, chief executive, who has over 20 years’ experience in the commercialisation of platform technologies and overall drug development strategy, planning and management.

Murray says: “Redx Pharma will be at the forefront of biotech in the North West and this investment leaves us well placed to exploit the state-of-the-art facilities we have at Merseybio, our close links with University of Liverpool and the enormous potential of the global pharmaceuticals market.”

Doug Stellman, investment director, YFM Private Equity, adds: “There is good public awareness of the continual battle to develop new formulations of antibiotics as bacteria acquire resistance to existing drugs. The company has a technology platform that will allow it to develop new formulations for antibiotics and other important drug classes. This round of venture capital funding is the vital step in taking this technology platform forward from proof of concept. It is hugely pleasing to see this Merseybio-based business close on a significant round of funding from investors who have recognised the potential of the technology and are prepared to invest at this stage.”

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