ValiRx Regulatory News (VAL)

15 Oct 2007 07:00

For immediate release: 07:00 15 October 2007

VALIRX PLC ("ValiRx") License Agreement

ValiRx (AIM: VAL), the cancer therapeutics company, is pleased to announce that it has signed a full license agreement with Chroma Therapeutics Ltd ("Chroma") to commercialise a non-invasive diagnostic technology patent developed by Chroma. The technology identifies epigenetic signal changes, in particular changes to the histone code, which occur in cancer related illnesses.

ValiRx believes this technology, called Nucleosomics1, has the potential to complement ValiRx's existing cancer diagnostics technology, HyperGenomics2, to create a non-invasive, mass screening, cancer diagnostics package that can deliver early stage diagnosis, specific diagnosis, prognosis, evaluation and therapeutic strategy.

The ongoing testing and development of the Nucleosomics technology alongside HyperGenomics will be carried out by ValiBIO S.A., ValiRx's recently formed Belgium subsidiary.

Under the terms of the agreement, ValiRx will pay Chroma royalties on any future sales resulting from commercialisation of the Nucleosomics technology.

Dr Satu Vainikka, CEO of ValiRx, commented:

"Put together, we believe that these technologies have the potential to form a mass screening, non-invasive cancer diagnostic and management package. Further, as both technologies are centred on epigenomics, we have the ability to develop and commercialise them jointly using existing resources and partnerships."

Ian Nicholson, CEO of Chroma, added:

"We are pleased to have partnered this programme with, in our opinion, a diagnostics specialist who has the skill base to fully exploit its potential as a new approach to cancer diagnostics."

Notes to editor 1. NucleosomicsTM

Nucleosmics is a non-invasive (blood) test for early cancer diagnosis based on epigenetic signal changes associated with malignancy.

The control of gene expression is determined by a number of different epigenetic regulatory mechanisms. Paramount amongst these is the chromatin environment surrounding the gene and key covalent modifications (including acetylation, methylation, phosphorilation and others) to the histone proteins associated with the nucleosomes of the gene. This is often referred to as the histone code.

Disruption of the normal histone code is associated with aberrant gene expression and malignant transformation and these alterations are the basis of Nucleosomics.

Nucleosomics is non-invasive. Intact nucleosomes derived from tumour chromatin are found in the blood of cancer patients, but not in healthy individuals. These cell-free nucleosomes can be analysed for histone code modifications. The presence in the blood of nucleosomes associated with particular histone modifications and/or gene sequences can therefore be used to diagnose the particular cancer.

2. HyperGenomics

Developed by Chronos Therapeutics, the HyperGenomics technology characterises cancerous and normal cells by mapping the open areas of chromatin on a chromosome using a patented PCR-based method.

About ValiRx plc

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 ImmuneFx¢â€ž¢ for which it recently received a patent from the US patent office.

ValiRx is headquartered in London, England. Further information can be found at www.valirx.com

About Chroma Therapeutics

Chroma Therapeutics, based in Oxford (UK), is a drug discovery and development company focused on building a broad pipeline of first- or best-in-class treatments for haematological and solid tumours. Chroma is backed by a number of leading specialist investors, including Abingworth, Essex Woodlands, Gilde, Nomura Phase4 and The Wellcome Trust.

More information about Chroma can be found at www.chromatherapeutics.com.

Contact Details: ValiRx Plc WH Ireland Chroma Therapeutics GTH Communications Dr Satu Vainikka David Youngman Ian Nicholson / Toby Hall / Jade Richard Bungay Mamarbachi +44 (0) 203 008 +44 (0) 161 832 +44 (0)1235 829 120 +44 (0) 20 7153 8035 4416 2174