My key notes- News rich period to follow and significantly undervalued12 Jan 2025 09:11
As always best not to follow anyone and do your own research . We have a few here that have lost money in the past like many others and a few that have lost a on stocks like 4D. I'll post why I am confident but just my views as to why this is such a fantastic buy at the moment. Note those not invested are here for a reason.
ValiRx previously reached highs of 74p and 64p with approximately 65 million shares in circulation, driven by the positive results of the 201 clinical trial and the execution of a letter of intent. However, the share price declined due to the inability of TRX to raise cash at that time and further dropped because of subsequent funding delays. Currently, the number of shares has increased by about fivefold from that . It now appears that TRX is finalising the 201 deal, which requires a Nasdaq listing to provide investors with an exit strategy and to raise additional funds for trials. The completion of the 201 sublicense agreement, expected before end of May 2025, will grant ValiRx the owed funds (a significant amount relative to the market cap) and a 0.5% equity stake also likely to be very valuable. The deal includes payments of about 2 million and 61 million milestone payments .
At its previous highs, ValiRx did not yet possess its most valuable asset, CLX001. This compound has successfully passed the evaluation stage, demonstrating extensive in vitro testing, proven in vivo efficacy, and safety. It has also undergone lead freeze-dried nanoformulation development, a critical phase in preclinical testing. Furthermore, CLX001 has shown potential against other cancers, such as prostate cancer. Please see below and previous RNSs:
https://valirx.com/clx001
The valuation could already be as high as £10/£20 million for CLX001 given the amount of work done and the novel nature of this compound. Over the coming months, CLX001 will likely undergo toxicology testing, which, if successful, is expected to significantly increase the compound’s value and bring it closer to the partnering stage. While the drug's potential has yet to be fully reflected in the share price, the scientific results to date have been highly promising.
As updates are released, the share price is likely to start factoring in the value of CLX001, with the company’s valuation likely increasing by many millions. Preclinical upfront payments typically average around £40 million, with milestone payments reaching hundreds of millions. While earlier-stage deals are possible, they tend to come with lower payments. (please see broker report from Shard)
For VAL401, we were informed that only one clinical trial is required . With potential milestones valued at £16 million for this deal, it becomes a highly valuable asset for the company. At the current market cap of £2 million, coupled with cash reserves secured for 2025, we are significantly undervalued. Achieving these milestones is likely to attract larger investments from institutional investors