Featured Company News - Loxo Oncology Acquires Reversible BTK Inhibitor Program from UK Biotech Firm Redx Pharma
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LONDON, UK / ACCESSWIRE / August 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Loxo Oncology, Inc. (NASDAQ: LOXO), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=LOXO. The Company announced on July 31, 2017, that it had signed an agreement to acquire the Bruton's tyrosine kinase (BTK) inhibitor program from Redx Pharma PLC. The lead candidate from this program is expected to enter clinical development in 2018. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Stamford, Connecticut based, Loxo Oncology is a biopharmaceutical company engaged in the development of highly selective medicines for patients with genetically defined cancers. The Company's pipeline focuses on treatment for cancers that are uniquely dependent on single gene abnormalities, such that a single drug has the potential to treat cancer with dramatic effect. The current acquisition will allow it to expand its portfolio of cancer drugs.
The Agreement
As per terms of the agreement Redx Pharma would hand over certain patents, intellectual property, contracts for product manufacture, and physical materials associated with its BTK inhibitor drug development program to Loxo Oncology. This includes the lead candidate LOXO-305 (earlier RXC005). In return, Loxo Oncology will pay $40 million to Redx Pharma for the same. The deal is not subject to any milestone or royalty payments.
Commenting on the acquisition, Jacob Van Naarden, Chief Business Officer of Loxo Oncology said:
"The Redx team has created novel chemical matter that selectively and reversibly inhibits BTK, a validated molecular target across numerous B-cell leukemias and lymphomas. It is our belief that the widespread use of covalent BTK inhibitors, such as ibrutinib, will increasingly drive acquired resistance through a mutational event in BTK called C481S, leading to a group of relapsing patients in need of new therapies. Our work suggests that a highly selective, reversible BTK inhibitor can address this emerging unmet need in patients whose disease has progressed on a covalent BTK inhibitor. The development of a highly selective compound in a genetically-defined population is a Loxo Oncology core competency."
About LOXO-305 (earlier RXC005)
LOXO-305 is a reversible BTK inhibitor. It was designed to reversibly bind BTK and preserve activity in the presence of the C481S acquired resistance mutation. Additionally, it was designed to avoid off-target kinases that have complicated the development of both covalent and reversible BTK inhibitors, such as EGFR, BMX, TEC, ITK, BLK, LCK, and SRC. LOXO-305 has shown potential to target both wild-type and mutant BTK, an important emerging resistance mechanism in patients with CLL (chronic lymphocytic leukemia) progression following ibrutinib treatment. Loxo Oncology plans to start the clinical studies in the next few months so that it can submit the Investigational New Drug (IND) application with the US Food and Drug Administration (FDA) in FY18.
Financial woes behind Redx Pharma's decision
Redx Pharma is a UK-based drug discovery and development Company and is focused on the development of proprietary, small molecule therapeutics principally in cancer, immunology, and infection. In May 2017, the Company's assets and business were put into administration by the Liverpool council for non-payment of an investment loan. Jason Baker and Miles Needham were appointed Joint Administrators. This was followed by the suspension of the shares from trading at AIM (a sub-market of the London Stock Exchange). The Liverpool Council had given an investment loan of £2 million to the Company nearly five years back.
The Company plans to use the funds raised from the sale to pay off its creditors and for working capital needs. The clearing of all dues will enable the Company to exit from administration and then move towards removal of suspension of the shares from trading at AIM. The Company management has to prepare a business plan to present to the administrators for review and approval. Once the administrators give their blessings the Company would exit from the administration.
Commenting on the sale, Jason Baker, Joint Administrator of the Company said:
"We are pleased to have taken a significant step forwards in-line with our strategy towards the rescue of the Companies as going concerns. Today's unconditional agreement is for the realization of certain of the Group's intellectual property assets, the proceeds from which will allow for the creditors of the Companies to be paid in full and provide working capital for the Group's continuing business, thus restoring the Companies to solvency."
Last Close Stock Review
On Tuesday, August 01, 2017, the stock closed the trading session at $70.47, dropping 2.54% from its previous closing price of $72.31. A total volume of 278.63 thousand shares have exchanged hands. Loxo Oncology's stock price skyrocketed 55.91% in the last three months, 79.63% in the past six months, and 174.31% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 119.43%. At Tuesday's closing price, the stock's net capitalization stands at $2.04 billion.
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