LONDON (Alliance News) - ValiRx PLC on Thursday said it has agreed to acquire the IP assets of FIT Bio for EUR5,000 and establish a genetic therapeutic and diagnostic-based joint venture with Alpha Blue Ocean.
FIT Bio is a biotechnology company based in Finland, which was involved in the development of gene delivery technology. Its principle technology - its Gene Transport Unit platform - has seen an initial product enter into clinical trials.
Clinical stage biotechnology company ValiRx said the joint venture was created to further develop FIT Bio's IP assets with the objective to assemble and progress a portfolio of genetic-based technologies.
Under the terms, ValiRx said it will provide scientific, technological and clinical development expertise to the joint venture, whilst Alpha Blue Ocean will focus on financing the entity and progressing commercial activities. It is also envisaged that ValiRx will add its GeneICE technology, along with the company's gene silencing compound, VAL101, into the joint venture portfolio.
Alpha Blue Ocean had previously provided finance to FIT Bio, having entered into a financing agreement with FIT Bio in December 2017. Following the termination of this financing agreement FIT Bio was placed into bankruptcy proceedings. ValiRx has acquired the IP assets from the appointed administrator of FIT Bio.
"The area of genetic editing is a very topical subject area at the moment in the media as gene editing looks set to transform the way we battle a range of diseases," said ValiRx Chief Executive Satu Vainikka.
"The IP assets of FIT Biotech complement well ValiRx's existing gene-based technologies and their combination will assist the group in leveraging its position within this medical market place," Vainikka added.
ValiRx shares were trading 2.8% lower on Thursday at 0.41 pence each.