(Alliance News) - ValiRx PLC said Tuesday that joint venture partner Tangent Reprofiling Ltd has entered a letter of intent with Black Cat Bio Ltd for the raising of funds to commercialise cancer drug VAL401.
ValiRx's 56% subsidiary ValiSeek was created in order to advance VAL401 as a treatment for late stage non-small cell lung cancer as well as other cancers.
ValiSeek currently has a worldwide exclusive licence from Tangent to progress VAL401 to commercialisation.
Black Cat Bio is a newly incorporated special purpose vehicle, with which Tangent has entered a letter of intent for the raising of GBP5 million to progress VAL401 to the next trial.
Black Cat Bio has entered a service agreement with private investment firm Zenith Partners to source the funding.
Subject to raising a certain amount, Valiseek will revoke its licence for the VAL401 patent portfolio, and Tangent will execute a new IP licence with Black Cat, where Black Cat will take responsibility for the funding and development of VAL401.
Should the fund raise be successful, Valiseek would enter an agreement with its shareholders to undertake a corporate reorganisation, in which existing Valiseek shareholders will become shareholders in Black Cat.
Shares in ValiRx were down 6.% at 0.11 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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