Biopharmaceutical company Jazz Pharmaceuticals (Nasdaq: JAZZ) announced on Wednesday that it has entered a definitive agreement to acquire clinical-stage biotechnology company Redx Pharma's KRAS inhibitor program, expanding its targeted oncology therapies.

The deal involves a USD10m upfront payment to Redx, with the potential for additional payments of up to USD870m based on development, regulatory and sales milestones. Redx will also receive royalties on future net sales. The collaboration includes advancing candidates through IND-enabling studies, with Jazz taking charge of clinical development, regulatory activities, manufacturing and commercialisation. The acquisition aligns with the pursuit of novel treatments for colorectal, pancreatic and lung cancers.

As part of the agreement, Jazz will pay Redx for research and preclinical development activities to complete IND-enabling studies for both G12D selective and pan-KRAS molecules.

KRAS, the most frequently mutated oncogene, holds potential for treating various cancer types. The deal positions Jazz to explore orally bioavailable agents targeting KRAS mutations, extending beyond the G12C mutation.

Jazz Pharmaceuticals, headquartered in Dublin, Ireland, focuses on developing transformative medicines for serious diseases in neuroscience and oncology, with a global presence and a diverse portfolio of marketed medicines and novel candidates.

Redx Pharma (AIM: REDX) concentrates on discovering and developing targeted therapeutics for fibrotic diseases and cancer. With a strong track record, Redx's lead fibrosis product candidate, zelasudil (RXC007), is in Phase 2a trials for idiopathic pulmonary fibrosis, while the oncology candidate RXC004 aims to report Phase 2 data in H1 2024. The acquisition follows Redx's strategic transactions, including the sale of pirtobrutinib (RXC005, LOXO-305) and collaborations with AstraZeneca and Jazz Pharmaceuticals.