ValiRx Regulatory News (VAL)

ValiRx plc

Unaudited interim results for the six months ended 30 June 2010

30 September 2010, London. ValiRx plc (AIM: VAL) ('ValiRx' or 'the Company") the cancer therapeutics and diagnostics company, announces its unaudited interim results for the six months ended 30 June 2010.

Highlights

• Successfully continued GeneICE preclinical development with Eurostars grant

• Secured funding and partnership agreement for personalised medicine companion diagnostic development

• Raised additional £500k before expenses through an equity placing

• Concluded sales and distribution licence agreements for the SELFCheck range of products

• Finalised the analytical validation of HPV prototype kit and started the clinical sample validation

Dr Satu Vainikka, Chief Executive, commented that:

"We have continued to make progress with our development programmes: GeneICE, Val201 hormonal related cancer therapeutics and our HPV diagnostics. During the period we raised additional funds and continued being funded by the Eurostars grant. The Company is focusing on its core development programmes and on revenue generation. Our trading platform, Valimedix, has concluded several distribution agreements and has expanded from Europe to North America."

"Overall, the healthcare sector continues moving forward. The personalised medicine approach is increasingly required within the marketplace and we believe that ValiRx is well placed to deliver better and targeted therapeutics and diagnostics to more safely and effectively meet the needs of clinicians and cancer patients."

Enquiries:

Chairman's statement

Strategic overview

I am pleased to report that during the period under review we continued to make solid progress on our therapeutic compounds to bring these closer to first in-human clinical trials. In particular it should be noted that all milestones associated with the GeneICE Eurostars programme have been reached on time, which is resulting in the Company being able to accelerate GeneICE development. Also the progress and recent licensing of the compound (Val201) from Cancer Research Technology is of significant importance to the Company's development.

The Company' external spend on research & development in the six months to 30 June 2010 was £44k (2009 £51k). Administrative expenses for the six months were £336k (2009: £717k). This reduction in administrative costs resulted from a significant and sustained effort to reduce overhead and salary costs while maintaining R&D activity. The group reported a loss after tax of £293k (2009: £681k), in line with the Board's expectation and, as at 30 June 2010, had cash reserves of £149k (2009: £336k) and generated revenues of £64k (2009: nil).

The Group completed an equity financing in April 2010, raising £500k before expenses. Since the period-end we have entered into an agreement for the sale of our wholly-owned Belgium subsidiary ValiBio SA ("ValiBio") to Singapore Volition Pte. Limited for US $ 1,000,000, of which $400k will be received in staged cash payments, with the balance in shares. The agreement is conditional upon the receipt of the first instalment of the cash consideration and is expected to be completed in the near future.

 While we have substantially reduced our exposure to diagnostic development costs, the Company continues to retain its interest in this area through companion diagnostics for applications alongside our anti-cancer therapies.

 As a result of the disposal of ValiBio, the group's operating costs have been substantially reduced and ValiRx is now a leaner business with the main focus on moving forward our anti-cancer therapeutics, which continue to show potential in pre-clinical studies to drive value.

The Directors believe that the divestment of ValiBio together with grants from Eurostars and other incomes provide adequate working capital to take our therapeutics to the next stage of development.

N Thorniley (Chairman)

30 September 2010

Consolidated statement of comprehensive income

For the six months ended 30 June 2010

Consolidated statement of changes in equity

For the six months ended 30 June 2010

Consolidated statement of financial position

As at 30 June 2010

Consolidated cash flow statement

For the six months ended 30 June 2010

Notes to the interim financial statements

1. General information

ValiRx Plc is a company incorporated in the United Kingdom, which is listed on the AIM. The address of its registered office is 24 Greville Street, London EC1N 8SS.

2. Financial information

The interim consolidated financial information for the six months ended 30 June 2010 has not been audited or reviewed and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The Group's statutory accounts for the year ended 31 December 2009 have been delivered to the Registrar of Companies. The report of the independent auditors on those financial statements was unqualified and did not contain a statement under Sections 498 (2) or (3) of the Companies Act 2006.

The interim financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS and under the historical cost convention. The accounting policies applied in preparing the interim financial information are consistent with those set out in the statutory accounts of the Company for the year ended 31 December 2009.

The interim consolidated financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the group operates.

3. Taxation

4. Loss per ordinary shares

The loss and number of shares used in the calculation of loss per share are as follows:

There was no dilutive effect from the share options outstanding during the period.

5. Dividends

The directors do not propose to declare a dividend in respect of the period.

6. Share capital

On 2 January 2010, the Company issued 100,000 ordinary shares of 1p at 1p per share to satisfy a liability of £1,000.

On 13 January 2010, the Company issued 200,000 ordinary shares of 1p each at 1.13p per share to satisfy a liability of £2,260.

On 16 February 2010, the Company issued 900,000 ordinary shares of 1p each at 1p per share to satisfy a liability of £9,000.

On 5 March 2010, the Company issued 3,600,000 ordinary shares of 1p each at 1p per share to satisfy a liability of £36,000.

On 21 April 2010 each issued ordinary share of 1p each was sub-divided and reclassified as one ordinary share of 0.1p each and one deferred share of 0.9p each.

On the same day, the authorised share capital was replaced with the authorised share capital as shown above.

On 21 April 2010, the Company raised £500,000, before expenses, by placing 142,857,143 new ordinary shares of 0.1p each at 0.35p per share.

On 21 April 2010, the Company issued 35,714,284 new ordinary shares of 0.1p per share to satisfy a liability of £125,000 due to the directors.

The deferred shares effectively have no rights or value.

7. Copies of interim results

Copies of the interim results can be obtained from the website www.valirx.com. From this site you may access our financial reports and presentations, recent press releases and details about the Company and its operations.