LONDON (Alliance News) - ValiRx PLC Tuesday said it has established a risk-sharing joint venture with Tangent Reprofiling Ltd which will progress Tangent's VAL401 potential cancer drug through its remaining preclinical development and towards Phase II trials.
ValirX said it has acquired a 60% stake in the joint venture, which will be called ValiSeek. It is paying an initial GBP110,000 to Tangent, GBP50,000 in cash and the rest by issuing 20.3 million new shares at a price of 0.295 pence.
Deferred payments depend on certain milestones being accomplished.
ValiRx said it will have board control of ValiSeek and Dr Suzy Dilly, co-inventor of VAL401, will assume operational responsibilities for ValiSeek as its chief executive.
Tangent is a member of the SEEK Group, a private biopharmaceutical company, focused on bringing safe, effective and low cost medicines to patients in the shortest time possible to radically improve human health in major disease areas.
ValirX shares were Tuesday quoted at 0.280 pence, down 5.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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ValiRx (VAL)