Redx Pharma plc(LON:REDX) shares gained on Wednesday as the group confirmed it will restart early-stage clinical trials on its cancer drug after discussion with the regulator.

The phase I/IIa assessment of RXC004 was halted in March amid concerns the initial dosing was too high.

Crucially, there were no other ‘off-target’ side-effects, while the compound appeared to act in the way expected.

Following talks with the Medicines and Healthcare Regulatory Agency, work will restart early next year at a lower initial dose.

First-half results

The update was provided alongside first-half results, which showed Redx to be in a financially strong position with just over £10mln in the bank as at March 31.

The company, which recently unveiled senior AstraZeneca executive Lisa Anson  its new chief executive, has also managed to cut £7mln from costs on an annualised basis.

It meant that Redx’s loss fell to £4.6mln in the six months from £10.7mln.

“I am pleased with the progress that Redx has made in the past six months,” said chairman Iain Ross.

“We have continued to advance our R&D programmes and achieved substantial cost savings across the business.“

In mid-morning trading, Redx shares were 1.9% higher at 13.75p.