Drug developer C4X Discovery’s (C4XD:AIM) decision to buy a genetic analysis technology is showing promise. C4X bought Taxonomy3 for £1.7 million in March to strengthen its own drug discovery capabilities. The deal was entirely funded by new shares.
Management today appear to be vindicated in their decision, the share price rising 5.6% to 103.5p as investors welcome today's update.
Taxonomy3 has highlighted new areas for potential new drug molecules to fight Rheumatoid Arthritis and Parkinson’s disease.
This has only created leads and investors need to be aware that this might not mean any new drug reaches the market. There is a lot of hard work, time and, potentially, shareholder cash needed, before this happens.
The technology analyses public databases to find unknown linkages between genes and disease.