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(Alliance News) - ValiRx on Friday said it has signed a material transfer agreement with a Japanese pharmaceutical company in relation to VAL301.
VAL301 - derived from ValiRx's lead compound, VAL201 - is intended as non-invasive treatment for endometriosis, a gynaecological disorder in which tissue which normally lines the inside of the uterus starts to grow outside of it. The condition stands as one of the major causes of female infertility.
The biotechnology company said the agreement signed with the undisclosed company will see VAL301 evaluated for the purpose of contemplating a potential future license for the treatment of endometriosis. It added that the company has already reviewed ValiRx's prior data and now wishes to use further data to conduct its own experiments.
The undisclosed company has a range of pre-clinical assays for testing drug candidates for use in the treatment of endometriosis, as well as several commercial and developmental products in women's health, and other healthcare areas, ValiRx noted.
Under the terms of the material transfer agreement, ValiRx will supply VAL301 while the Japanese company will be responsible for undertaking an agreed programme of work at its own expense.
In a separate statement, London-based ValiRx noted the recent movement in its share price, adding that it believes that any placing conducted will have to be at a price likely to be at a "significant" discount to its current stock price.
Earlier in April, the company said it was reviewing ways to raise funds to improve its "extremely weak" capital position.
Shares in Chelmsford-based ValiRx were trading 2.9% higher at 13.50 pence each on Friday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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