ValiRx Plc Release: Half Yearly Report
HIGHLIGHTS
• Late stage pre-clinical R&D programmes have generated positive results to support therapeutic potential of our lead compounds, VAL201 and VAL101 (GeneICE).
• VAL201, which has shown significant inhibition of aggressive tumour cell proliferation in prostate cancer, also reduces spread of secondary tumours.
• Manufacturing of VAL201 to regulatory standards has also been successful and the drug is currently undergoing regulatory toxicology studies prior to entering clinical trials.
• Focusing on potential indication for GeneICE drug candidate.
• Secured additional shareholder support with a gross investment of GBP 900,000.
• Acquisition by Finnish subsidiary, ValiRx Finland OY ("ValiFinn"), of biomarkers business unit together with several families of patents and patent applications and related intellectual property ("IP").
• Material Transfer Agreement (“MTA”) concluded with a distinguished cancer treatment and research centre, the Institut Paoli & Calmettes ("IPC") in Marseille, France to conduct translational and developmental studies on ValiRx’s lead compound, VAL201 and assist with its progression towards clinical trials.
• Establishment of Scientific Advisory Board (“SAB”) to advise and assist the Company in the further development of its technologies and products in oncology therapeutics and diagnostics and provide world-class clinical expertise.
• Continued collaboration with Imperial College, Cancer Research UK and Oxford University.
Nicholas Thorniley, Non-Executive Chairman of ValiRx, commented:
“Our progress during the period under review has been very encouraging. VAL201, which has been shown to significantly inhibit the aggressive tumour growth in prostate cancer, also reduces the spread of secondary tumours (metastasis) by up to 50 per cent. These findings are a major step forward, since patients with prostate cancer typically develop metastasis. The Company believes that this further strengthens the product offering.”
“I am pleased that one of a number of our compounds is expected to be entering clinical trials. The preclinical results on VAL201 have exceeded our expectations and the Company is assessing its options; one of which is to conduct its own Phase I trial rather than out-licensing at this stage. We believe that we can drive greater shareholder value in conducting Phase I trials ourselves, but we continue to consider all options. With the Company’s costs under control and with the Group and its lead therapeutics and other assets moving forward, as planned, I look forward to the future with growing confidence.”
For more information, please contact:
ValiRx plc Tel: +44 (0) 20 3008 4416
Dr Satu Vainikka www.ValiRx.com
Cairn Financial Advisers LLP (Nominated Adviser) Tel:+44 (0) 20 7148 7900
Liam Murray / Avi Robinson
Hybridan LLP (Broker) Tel: +44 (0) 20 7947 4350
Claire Noyce / Deepak Reddy
Peckwater PR Tel: +44 (0)7879 458 364
Tarquin Edwards tarquin.edwards@peckwaterpr.co.uk
Chairman’s Statement
I am pleased to report that during the half year ended 30 June 2012, the Company has continued its strong progress in the development of a sustainable platform for drug development. Costs have been kept under control and the Company and its compounds have moved forward as planned and we are particularly pleased to see the continuing development of our lead therapeutic compounds VAL101 and VAL201, and especially VAL201 towards the commencement of in-human clinical trials.
Revenues for the half-year were £157,535 (2011: £418,263). Administrative expenses were £709,148 (2011: £417,508). Losses after taxation were £1,088,122 (2011: losses £161,392). In the half-year £540,211 (2011: £152,935) was spent on Research and Development, which contributed to the higher losses.
In April 2012, we completed a placing through our broker Hybridan, to raise GBP 900,000 (before expenses) which has provided ValiRx with a secure base of funding from which the Company could accelerate and complete its pre-clinical work on VAL201 and also to continue pre-clinical work for VAL101 among other activities. Furthermore, the placing has enabled the Company to continue development of companion diagnostics methods and expand its IP portfolio and value, alongside providing scope for an increase in the marketing of our biomarkers business.
The period also saw our Finnish subsidiary, ValiRx Finland OY, acquire from Pharmatest Services Oy of Oulu, Finland, its biomarkers business unit together with several patents and patent applications and related intellectual property. Strategically, the acquisition will enhance the Company’s R&D capability, as the specialist biomarker expertise within the unit is leveraged to advance in-house the development of companion biomarker diagnostics to complement ValiRx’s therapeutics. This acquisition also provides ValiRx with an increased exposure to the Biomarker market, a key and increasingly exciting field within our industry, and to a revenue stream, derived from the provision of contract services. At the end of March 2012, ValiRx concluded a Material Transfer Agreement (“MTA”) with the Institut Paoli & Calmettes ("IPC") in Marseille, France. Under the terms of the MTA, the IPC has been conducting translational and developmental studies on ValiRx’s lead compound, VAL201 and will assist the Company in the progression towards clinical trials. The manufacturing of VAL201 to regulatory standards has been successful and during the period VAL201 has been undergoing regulatory toxicology studies.
Our progress during the period under review has been very encouraging and the advances in the development of our drug programmes represent a major step forward to further strengthen our product offering.
I am delighted that one of a number of our compounds is expected to be entering clinical trials imminently and based upon this increasingly secure corporate platform, I look forward to the future with growing confidence.
Nick Thorniley
Non-executive Chairman
20 September 2012