Redx Pharma has decided to list in New York because it wants to tap into a wider and more specialized pool of investors.
The latest blow for the City is that the London-listed Biotechnology Company, which has been through a turbulent time since its flotation on Aim, London Stock Exchange’s junior market in 2015, feels it should ultimately be listed on Nasdaq.
Lisa Anson, chief executive officer of Redx, stated that the majority of large biotechnology specialists were based in America. “So, inevitably, you start looking more and more at the US investor basis.” To access these pools of capital, you will need to ultimately be listed in the United States. We will discuss this as a board. “We have been able to attract US investments despite the fact that Aim is listed.”
When asked if Redx would consider switching its listing to America from Britain, she replied: “The board is looking at a variety of options.”
Redx’s highly concentrated share register would be diversified by a US listing. According to FactSet, Redmile Group, a life sciences investor in the United States, owns more than 71% of Redx’s stock. Anson stated that Redx was one of the largest fundraisers for Aim. This included a £14million exercise last year.
The post-pandemic sale-off of biotechnology has affected the fortunes of British biotechnology companies.
Redx was founded in 2010, with the support of Jon Moulton the venture capitalist. It is based in Alderley Park (Cheshire), the former AstraZeneca site. Anson, 55 years old, is a former AstraZeneca executive, and he was the ex-president of the Association of the British Pharmaceutical Industry. He became the CEO of Redx in 2018.
Shares of the company soared last week, after it signed a research collaboration worth up to 880 million dollars with Jazz Pharmaceuticals. This was the third deal with Jazz.
Redx had previously tried to leave Aim for Nasdaq. In March last year, the merger of Jounce Therapeutics, an immunotherapy company based in Massachusetts , for £353,000,000, failed after Jounce agreed to merge with another company. Redx planned to drop its London listing and instead be listed on the Nasdaq where Jounce is listed.
Three years ago, Redx attracted a bid for takeover from . This consortium was led by Sam Waksal. He is an industry executive that pleaded guilty in several charges to the Imclone Systems Insider Trading scandal in the US twenty years ago. The affair resulted in jail terms for both him and Martha Stewart, a media celebrity.
In 2017, trading in Redx shares was temporarily suspended when Liverpool City Council called in administrators to investigate a £2million loan.
Redx shares were up a penny or 4.9 percent at 21 1/2p by the close.