ValiRx signs licence with Ambrose worth GBP16 million plus royalties

(Alliance News) - ValiRx PLC shares surged on Friday as it said Ambrose Healthcare Ltd has exercised its option to licence its VAL401 asset for GBP16 million plus royalties.

Shares in ValiRx were up 36% at 0.75 pence in London on Friday morning.

ValiRx is an Essex-based life sciences company focusing on early-stage cancer therapeutics and women's health.

It said private UK specialist pharmaceutical company Ambrose has served notice to ValiSeek Ltd to exercise the option on the asset, under pre-agreed terms from December 2023.

ValiSeek is a joint venture company between ValiRx, which owns 54%, and Tangent Reprofiling Ltd. It was formed to progress VAL401, which is a reformulation of the established anti-psychotic drug risperidone which is seen to have an anti-cancer effect.

Under the option agreement, ValiRx will receive 576,000 shares in Ambrose, with clinical and commercial milestone payments to be made to ValiSeek totalling up to GBP16 million plus royalties.

The initial GBP6 million milestones are payable in cash or the equivalent value in new shares in Ambrose.

Ambrose will meet all future patent costs and has committed to completing the development and commercialisation of VAL401, ValiRx added.

"We are pleased to be able to complete this technology license for VAL401 with Ambrose and we have been working to identify multiple funding partners to progress VAL401 through the various clinical stages with several options under discussion," said ValiRx Chief Executive Officer Mark Eccleston.

"In addition, we are also exploring short term opportunities to support a funded preclinical validation for VAL401 through our wholly owned subsidiary, Inaphaea Biolabs Ltd, which has 19 pancreatic patient derived cell models. These models can be applied in 3D systems as new approach methods which are receiving growing support from the [US Food & Drug Administration] in support for [investigational new drug] submissions."

By Michael Hennessey, Alliance News reporter

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