Redx Pharma PLC (LON:REDX) said it has received funding from a £5mln short-term debt facility agreed at the end of March with US healthcare firm Redmile.
The AIM-listed group said the funding was received in early April and will provide operating cash into the third quarter of 2020.
READ: Redx Pharma enters into £5mln short term loan agreement with entities controlled by shareholder Redmile
Redx also said it was also continuing discussions with Redmile regarding the US firm’s intention to provide further long-term funding to the business.
Operationally, the company said it remained focused on its strategy of discovering and developing novel drugs to treat cancer and fibrosis.
“Despite the impact of and restrictions related to the [coronavirus] pandemic, the majority of the Company's operations in the discovery phase, preclinical phase, and in ongoing research collaborations are continuing to plan”, Redx said in its statement.
The group also confirmed that recruitment to its phase 1/2a clinical trial of RXC004, an oral porcupine inhibitor, has been halted in line with the policy of the five recruiting hospital centres in the UK to prioritise resources for the NHS.
Redx said it supported the decision, but, as a result, they expected that the recruitment halt will result in a delay of up to six months to the completion of this trial and commencement of phase two expansion studies, which were planned to commence in the second half of 2020.
The company said it is “actively evaluating opportunities to re-initiate recruitment earlier in other countries where [coronavirus] has had limited impact on health services”, and it will provide further updates in due course.
Shares in Redx were steady at 15.8p in lunchtime trading on Thursday.