ValiRx Regulatory News (VAL)

5 February 2015

ValiRx Plc

("ValiRx" or the "Company")

Acquisition

Acquisition of Finnish gene expression & biomarker technology together with associated patents and Intellectual Property

ValiRx Plc (AIM: VAL), a life science company with a focus on cancer therapeutics for personalised medicine, is pleased to announce that it has acquired the assets and intellectual property rights of the Finnish gene expression and biomarker technology 'Transcript Analysis with the Aid of Affinity Capture' ("TRAC") for use by its wholly owned biomarker unit, ValiRx Finland Oy (ValiFinn"), based in Oulu, Finland for a consideration and payment of €75,000 in cash.

The Board of ValiRx believes that the strategic acquisition of TRAC technology will strengthen ValiFinn's biomarker development and service offering, by providing a high-content gene expression analysis platform, which will support ValiRx's development of oncology biomarkers and will support the Group's development of its oncology drug pipeline.

Furthermore and in addition to this strengthened offering, with regard to ValiRx's proprietary 'gene-silencing' GeneICE technology (or "Gene inactivation by chromatin engineering"), the Board believes there are further synergies and advantages to be gained through GeneICE's access to and pairing with TRAC's gene expression analysis technology. Since GeneICE down regulates "rebellious Genes", TRAC can be used as a fast method to test GeneICE expression biomarkers and is well placed to select future GeneICE therapeutic targets.

Dr Satu Vainikka, CEO of ValiRx, commented:

"The acquisition of the TRAC technology platform will synergistically strengthen our biomarker development capabilities and our biomarker library at ValiFinn and it will also substantially support our on-going clinical trials programme. The technology is already being used by a range of customers, has a revenue stream and has the potential to grow into a substantial and profitable business."

The transaction represents a complementary and revenue enhancing acquisition for ValiRx and I am pleased to see the Group moving further into the fast developing biomarkers' space, whilst also bringing benefit to its increasingly exciting clinical and therapeutic development work. I look forward to the Company reaping the benefit of its increased capabilities shortly."

TRAC enables the efficient screening of a large number of drug candidates for a wide range of genetic safety and efficacy markers. Biomarkers are imperative for personalised medicine and add value as well as increase the competitiveness for any therapeutic approach in oncology.

The technology platform already has an established customer base and it has been generating revenue since 2012 without the benefit of an emphasis or focus on sales and marketing. Going forward, ValiRx will look to leverage upon TRAC's market presence and grow the sales of this diagnostic business. The Company believes that together with clinical validation, revenues from TRAC will grow, which will support both the biomarker and therapeutic development businesses. ValiFinn, which is itself already generating revenues, is well placed to further develop as a service/licensing business.

The TRAC method was originally in development for over 10 years at VTT (Finnish State Research Centre) before its completion and launch in 2011. The technology is accurate, efficient, fast acting and low cost and has the advantage that competing technologies cannot provide a similar optimal combination of accuracy and flexibility to fulfill customer demands cost-effectively. It has been tested in over 50 pre-launch projects for customers in Europe and the US and these include leading global pharmaceutical companies and Contract Research Organisations.

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Notes for Editors

Background on Biomarkers (Sources: BCC Research and researchandmarkets 2010/2011)

Biomarkers in Cancer Research 2010 stated that the use of Biomarkers in Oncology Therapeutics is one of the biggest application areas with main emphasis on predictive and personalized medicine.

The global cancer biomarkers market for 2007 was estimated to be $3.6 billion and is expected to grow at a CAGR (Compounded Annual Growth Rate) of 6.3% to reach $6.3 billion by 2016. This growth is primarily attributed to the rise in the number of biomarker tests in a wide variety of Cancer types.

In the future, the growth of personalized medicines and the strong support from regulatory agencies such as the FDA will be the two major factors that will drive the demand for biomarkers, particularly in cancer research.

Personalised medicines are gaining popularity due to their ability to provide customised treatment to patients based on their genetic as well as medical profile. Since biomarkers help in predicting patient response to a compound, personalised medicine is increasingly using biomarkers to identify the patient population set that is more likely to respond to a particular drug therapy. Personalised medicines are also increasingly being used in targeted cancer therapies. Thus, going forward, as personalised medicines gain more importance and popularity, the demand for biomarkers is also expected to increase.

ValiRx Plc

ValiRx Plc is a biopharmaceutical company developing novel technologies and products in oncology therapeutics and diagnostics. The product focus is in the epigenomic analysis and treatment of cancer, but the technologies can be applied to other fields as well, such as neurology and inflammatory diseases.

The Company listed on AIM in October 2006 and is creating a portfolio of innovative products through investment in specific development projects. It actively manages projects within this portfolio as a trading company and is not an investment vehicle. The ValiRx business model spreads the risks of life science technology developments by minimising financial exposure and running a set of projects to defined commercial endpoints. This maximises returns to shareholders by adding value at the earlier stages where value increases per investment unit are the greatest.

The Company operates through the following divisional companies:

1. ValiFinn is the biomarkers and diagnostic development division

2. ValiPharma is the therapeutics division with two embedded technologies primarily directed at the treatment of cancers.