ValiRx Regulatory News (VAL)

25 Nov 2009 07:00



ValiRx plc

("ValiRx" or the "Company")

Trading update

The Company announces the following updates on its operations and subsidiaries:

Diagnostics

ValiMedix

Following the statement announcing the establishment of ValiMedix Limited ("ValiMedix") on 14 September 2009, ValiRx is pleased to announce that initial sales of the ValiMedix diagnostic kits have been encouraging, across the whole range in the first six weeks of trading. These sales mark a significant milestone in the transition of the Company from being a pre-revenue biotech company to a commercial life sciences business.

The Company's strategy is to develop its distribution networks both in the UK and overseas.  ValiMedix is currently in discussions to extend its brand portfolio and aims to roll out additional diagnostic kits in its markets in due course.

ValiMedix recently attended the MEDICA trade fair, the biggest annual medical technology and diagnostic event in Europe, to showcase its diagnostic kits to a targeted audience of distributors and end customers. ValiMedix anticipates that, in addition to its existing UK distribution agreements, it will conclude global agreements for its diagnostic products with key partners during the next quarter. 

ValiBio

The development of ValiBio's high risk HPV infection test has been progressed to meet recent FDA guidelines (separate detection of HPV subtypes 16 and 18 which are very high risk for development of cervical cancer as well as detection of 12 further high risk HPV infections). A prototype test is in place and currently undergoing analytical validation. 

A prototype nucleosome test been developed by ValiBio. A license to use some of the antibodies for this is currently under negotiation. 

In addition, an option has been taken over a clinically proven histone biomarker for lung cancer prognosis. Based on this, an immunohistochemical tissue biopsy test, as well as a Nucleosomics blood test, will now enter development for lung cancer prognosis.

Further update to Sale of Shares Agreement

Further to the announcements made by the Company on 15 December, 2008, and 31 March, 2009, the Company confirms that it is in discussion with Biofield Corp ("Biofield") regarding the payment of Eur 600,000, together with additional compensation of Eur 60,000, as consideration due to the Company following the disposal of 10 percent of the Company's holding in its subsidiary, ValiBio S.A.. The payment date for the consideration has been extended to 31 December, 2009. Mr James MacKay, a shareholder in Biofield has transferred shares of preferred stock of par value $0.001 per share in Biofield to ValiRx as security for the consideration due to the Company.

Therapeutics

The development of the Company's GeneICE technology for use in the treatment of cancer is progressing according to expectations partly funded by the Eurostar programme which was announced 10 June, 2009. Additionally, significant developments are being achieved in the evaluation and preclinical development of the ARP (Val 201) programme for the treatment of prostate cancer and an additional indication.

Outlook

The Company continues to develop its operations which are focused on creating new markets for the very early detection of cancer so as to be able to offer significantly improved treatments. Until its operations are revenue generating to a sufficient level, the Company is dependent on the availability of grants to fund its operating subsidiaries, its ability to raise additional capital through the issue of further equity and the successful recovery of contractual sums due to be paid by Biofield. The Company is reviewing its options to raise additional finance and further announcements will be made, as required.

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