(Sharecast News) - Cancer therapeutics-focussed life science company ValiRx announced on Tuesday that its subsidiary ValiSeek has entered into an exclusive option agreement with Ambrose Healthcare, a private UK-based pharmaceutical company.
The AIM-traded firm said Ambrose, founded in 2022, was dedicated to advancing treatments for rare diseases and patients requiring specialised care in hospital settings.
ValiRx said it had an experienced leadership team with extensive knowledge of the pharmaceutical industry, both nationally and internationally.
Under the option agreement, Ambrose would gain a 12-month period of exclusivity during which it can exercise the option to obtain a global, exclusive licence for ValiSeek's VAL401 asset.
The specific terms for the option were pre-agreed upon.
In consideration for the exclusive option, ValiSeek would receive an undisclosed, nominal fee.
The board said the payment would be made through the issue of shares in Ambrose Healthcare.
If Ambrose decided to exercise the option, the agreement outlined a structured payment plan, including clinical and commercial milestone payments to ValiSeek, which could total up to £16m and royalties.
Under the licensing terms, Ambrose was committed to funding the development and commercialisation of VAL401 at its own expense.
"I'm delighted to have agreed this path to development of VAL401 with Ambrose Healthcare," said chief executive officer Dr Suzy Dilly.
"I'm looking forward to seeing the project develop under Ambrose Healthcare's experienced oversight, combining clinical development and commercial experience."
At 1440 GMT, shares in ValiRx were up 18.28% at 11.68p.
Reporting by Josh White for Sharecast.com.
ValiRx (VAL)