The Redx Pharma PLC (LON: REDX) share price rose 5.28% after announcing that Sarah Gordon-Wild, an independent non-executive director, had resigned as a member of the board and company director effective at the end of the firm’s current fiscal year on 30 September 2023.
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The positive reaction from investors was unexpected and may not be directly related to today’s news. Redx Pharma announced yesterday that its zelasudil (RXC007) drug, an oral, selective Rho Associated Coiled-Coil Containing Protein Kinase 2 (ROCK2) inhibitor, had received Orphan Drug Designation from the US Food and Drug Administration (FDA).
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Yesterday’s news triggered a significant rally in Redx Pharma’s share price, which could have extended into today, given the significance of the orphan drug designation from the FDA. Zelasudil is being developed as a potential treatment for Idiopathic Pulmonary Fibrosis (IPF) and is currently in a Phase 2a clinical study for IPF.
The US FDA usually assigns Orphan Drug designation to new treatments that prevent, diagnose or treat a rare disease or condition that affects fewer than 200,000 in the US. The designation provides Redx with various development and commercial incentives, including market exclusivity, to address the significant unmet need for IPF patients.
Therefore, today’s rally extends yesterday’s rally as buyers step up and push prices higher. The company also clarified that it has no plans to replace Ms Gordon-Wild as a director. Ms Gordon-Wild is the Chair of the Remuneration Committee and a member of the board’s Audit Committee.
The company has named Dr Bernhard Kirschbaum the next chair of the Remuneration Committee once Ms Gordon-Wild leaves. No new directors will be appointed to replace Ma Gordon-Wild on the two committees.
Dr Jane Robertson, Redx Pharma’s Chief Medical Officer, commented: “We are delighted that the FDA has recognised the potential of zelasudil for the treatment of IPF and granted Orphan Drug Designation. Selectively targeting ROCK2 is an exciting, novel approach which could provide a new treatment option for patients with IPF, and with potential applications in other interstitial lung diseases and cancer-associated fibrosis.”
Redx Pharma share price.
The Redx Pharma share price rose 5.28% to trade at 28.0p, adding to Monday’s rally. What’s next?
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