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19 Jul 2007 07:00
For immediate release: 19th July 2007
VALIRX PLC ("ValiRx" or the "Company") Joint Venture
ValiRx Plc (AIM: VAL), the cancer therapeutics company, is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with BIO.Be ("BIO") to establish a joint venture company focused on the development and commercialisation of products in the epigenomics sector, which is projected to reach a value of US$4.1 billion by 2012. BIO is a Belgian company of the Institute of Pathology and Genetics ("IPG"), which is the pathology centre for more than 20 Belgium hospitals.
Pursuant to the terms of the MOU, an oncology diagnostics company, ValiBIO S.A. ("ValiBIO), is being established with its headquarters in Gosselies, Belgium. ValiRx will invest cash and equity in return for 77% of the equity of ValiBIO. ValiBIO will also be financed by partly repayable (under certain circumstances) government grants and loans The funds will be used by ValiBIO to build a team and laboratory facilities to utilise the scientific and material resources at IPG and patient materials from European cancer biobanks to develop HyperGenomics-based cancer diagnostic products.
ValiBIO's objectives will be:
* to implement development programmes including the identification of complementary Intellectual Property ("IP") around oncology biomarkers, diagnostic technologies and specific tests that could be in-licensed to optimise the commercial outcome of the technical objectives; * to establish and operate laboratory facilities with the required expertise to integrate internal expertise and technology platforms, methods and tests with publicly available information to commercially progress the programme; * to access and utilise `biobanks' of human patient-derived tissue and physiological fluids for product development in accordance with appropriate ethical procedures and guidelines; and. * to participate in regional, national and international (European) programmes of significant size and complementary to the internal R&D efforts. These activities should have the potential to be sources of complementary financing.
The Board of ValiBIO will be made up of seven individuals, including Dr Satu Vainikka (CEO of ValiRx) as Chairman, Patrick Rousseau as Chief Executive Officer and Dr Jean-Michel De Brey, the IPG / BIO representative, as Chief Scientific Officer.
Dr Satu Vainikka, CEO of ValiRx, commented:
"We are delighted to have reached this agreement with BIO. We look forward to working towards the discovery and development of Biomarkers and diagnostic tests that could lead to potential applications in the oncology market. Our objectives are clear and we anticipate our first value building milestone within 24 months and potential revenue-flow thereafter."
Patrick Rousseau, CEO designate of ValiBIO, added:
"The joint-venture will initially focus on the epigenetic diagnostics market, worth over US$385m globally by the end of 2007 and the whole cancer market estimated to be worth US$7.5 billion by 2009. There is currently no product that meets the cancer diagnostic needs and we intend to develop this through our new venture."
Dr Bernard Morelle of the IPG / BIO, said:
"We are delighted to partner with ValiRx in this exciting opportunity and look forward to a productive and successful collaboration."
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Information on ValiRx
ValiRx is a biopharmaceutical development company that is building a portfolio of complementary cancer-related therapeutic and diagnostic technologies. It currently holds stakes in Cronos and Morphogenesis Inc;
* Cronos holds licenses to two innovative and potentially market changing technologies, GeneICE and HyperGenomics; * Morphogenesis Inc. is developing a portfolio of cell therapy products for the treatment of chronic disorders. Its most advanced product, being ImmuneFxΒ’Γ’β¬ΕΎΒ’ for which it recently received a patent from the US patent office.
ValiRx is headquartered in London, England. For further information, please visit www.valirx.com
Information on IPG
Started in 1958 by Dr Claude Fievez, IPG has grown into a world renowned institute specialising in media diagnosis relating to anatomophathology, cyogentics, molecular biology and molecular microbiology.
There are over 180 people that work at IPG, providing almost 250,000 specialised analyses every year.
For further information, please visit www.ipg.be
Contact Details: ValiRx Plc WH Ireland GTH Communications Satu Vainikka David Youngman Toby Hall / Jade Mamarbachi +44 (0) 203 008 4416 +44 (0) 161 832 +44 (0) 20 7153 8035 2174
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