Final Results

RNS Number : 1320N

ValiRx PLC

07 June 2010

 



ValiRx Plc

("ValiRx" or "the Company")

PRELIMINARY RESULTS

For the twelve months ended 31 December 2009

ValiRx Plc (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, today announces its preliminary results for the twelve month period ended 31 December 2009.

HIGHLIGHTS

Successful completion of next phase of preclinical work on GeneICE lead drug candidate supported by a Eurostar Grant, bringing GeneICE candidate closer to 'first-in-human' trial; further development milestones anticipated to be reached during this first of two years of the Eurostar programme;

Launch of ValiMedix, the sales and distribution arm of ValiRx and the steady growth in sales of its range of SELFCheck testing kits in Europe as of Q4 2009; additionally the Company has extended the commercialisation of these products to North America;

Working capital requirement secured through recently completed fundraising and confirmation of grants;

Additional patents have been filed and granted, strengthening the Company's IP portfolio;

Partnering and funding agreement for epigenetic analysis. This provides additional funding for prototype development in respect of epigenetic analysis and mapping, involving the understanding and measurement of changes in gene activity; and

Focused corporate development with the purpose of creating next generation of diagnostic technologies validated to deliver reproducible results and first or best in class epigenetic anti-cancer drugs.

Dr Satu Vainikka, CEO of ValiRx, commented:

"We are making steady advancements in the commercialisation of our diagnostic technologies for the early detection of cancer and the development of our GeneICE platform at a time when the healthcare sector is increasingly striving to move towards personalised testing and medicine to improve patient outcome.  The Directors of ValiRx believe that the Company is building technology and drug platforms with potential to challenge leading players in the cancer market."

Annual Report and Accounts

The Annual Report and Accounts have been dispatched to shareholders today. 

Annual General Meeting

Notice is hereby given that the Annual General Meeting (Meeting) the Company will be held at the offices of Rooks Rider Solicitors, Challoner House, 19 Clerkenwell Close, London EC1R 0RR on Wednesday 30 June 2010 at 10.00 am.

For more information, please contact:

ValiRx plc
Dr. Satu Vainikka	Tel: [phone]
	www.valirx.com
WH Ireland Limited - Nominated Adviser
Katy Mitchell	Tel: [phone]
Hybridan LLP - Broker
Claire Noyce	Tel: [phone]
Peckwater PR
Tarquin Edwards	Tel: [phone]
	[e-mail]

Notes for Editors

ValiRx Plc

ValiRx plc is a biopharmaceutical company developing novel technologies and products in oncology therapeutics and diagnostics. It is headquartered in London and admitted to AIM in October 2006. The Group has a portfolio of innovative epigenetic technologies and products with worldwide exclusive rights and patents.  Its technologies can also be applied to other fields of medicine, including those such as neurology and inflammatory diseases.

*ValiPharma is the therapeutics division with two embedded technologies primarily directed at the treatment of cancers. Of particular note is GeneICE, ValiRx's technology for controlling rebellious genes, which was awarded a Eurostars grant to the value of €1.2 million to fund the development of the GeneICE products through preclinical stages in cancer treatments

**ValiMedix Ltd is a UK based company dedicated to building itself into profitable Point of Care diagnostics companies. Initially this will be achieved through a programme of acquisitions accompanied by the in-licensing of products and product ranges which may be generic or with associated intellectual property that can be commercialised through existing established distribution channels to end users.

VALIRX PLC
CHAIRMAN'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2009
	I have pleasure presenting the Company's results for the twelve months ended 31 December 2009.
	As I reported in the my statement made twelve months ago, the sale of our 10% stake in ValiBio S.A. ("ValiBio"), our wholly owned Belgian subsidiary, to Biofield Corp ("Biofield's) had encountered a number of difficulties. Unfortunately the deal has now fallen away, as a result of Biofield's inability to raise sufficient funds to complete its side of the transaction. This matter has now been referred to our lawyers, and the Company will provide further updates in due course.
	On a slightly happier note, last year I also reported that we had reached agreement in principle for a grant in the form of a loan of €1.05 million from one the Belgian Regions to ValiBio. As announced on 22 December 2009, I can confirm that this loan has now been approved and drawdown should begin in the second half of the current year. Although somewhat later than originally anticipated this is a welcome event that should enable ValiBio to accelerate its product development on the diagnostic side.
	In my last year's report I also commented on our difficulties in generating revenues for the first time from our range of diagnostics and drug products. I am therefore pleased to report that we formed a new wholly owned subsidiary, ValiMedix Limited, in August last year and sales from this division are starting to build up satisfactorily (revenue for this division was £8,000 for the period under review).
	The therapeutics subsidiary, Valipharma Limited, had another successful year, completing additional preclinical work on GeneIce following the winning of the €1.2 million Eurostar grant. Over the last eighteen months all development milestones have been met and on current plans this lead compound could enter Phase 1 trials sometime during the first part of 2011.
	Your company successfully completed a £0.5 million funding round earlier this year and this once again highlights the continuing support of shareholders.
	Outside the Company's own activities, the Directors' believe ValiRx's position continues to strengthen as the industry moves towards a greater recognition of epigenomics and early screening diagnostics.
	On a personal note, I would like to thank both the executive team and non-executive directors for the significant contribution both groups have made to the business over the last twelve months.
	N Thorniley
	Chairman
	3 June 2010

VALIRX PLC
CHIEF EXECUTIVE OFFICER'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2009
	Over the period under review, I am pleased to report on the continued solid progress of your Company and on the attainment of a number of important milestones.
	My report highlights major operational activities, whilst the Chairman's report will cover the more strategic activities.
	In the first instance, ValiRx completed a successful funding (£0.98 million) through an equity placing to secure the development of the business.  Post period end, the Company was delighted to receive further support (£0.5 million) from its shareholders by way of a recent placing in April this year.
	During the reporting period, we have continued preclinical work with GeneICE following our award of a Eurostar grant to develop the Company's lead compound and I am pleased to also report that development milestones were met. GeneICE compounds have the potential to freeze the development and growth of cancerous cells and also have potential major applications in inflammatory disease and inherited genetic conditions.  ValiRx's is currently leading a consortium of three companies, and retains commercial rights for GeneICE from the programme.
	With respect to associated diagnostic activities, we were also delighted to receive partnership and funding agreement for epigenetic analysis. We have made further progress with the development of our diagnostic tests during the period and subsequently. Significant progress has been made in expanding to other indications and we are also continuing to develop our intellectual portfolio, providing the company with potential further value creation.
	The market launch of our new diagnostic product trading platform, ValiMedix has been successful as can be seen by the steady roll-out and expansion of its range of self-testing kits which are being marketed internationally by the Group under the Selfcheck brand and with revenues being generated from Q4 2009.  As an increasing number of personalised approaches to therapeutics and diagnostics are required in the marketplace we are confident that, with our expertise and trading platform, we are well positioned within the marketplace and the Company will continue its development into a commercial life sciences business.
	Looking to the future, we continue to look for further commercial opportunities and partnering contracts whilst at the same time moving forward with the therapeutic development programmes. Our aim continues to lie in the delivery of earlier and more accurate diagnostics and more targeted and effective therapies across the oncology sector.
	Satu Vainikka
	Chief Executive Officer
	3 June 2010

VALIRX PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2009
			2009		2008
			£		£
Revenue			29,326		30,748
Cost of sales			(2,968)		-
			───────		───────
Gross profit			26,358		30,748
Administrative expenses			(1,389,010)		(1,258,063)
Other operating income			-		1,400
			─────────		─────────
Operating loss			(1,362,652)		(1,225,915)
Amounts written off investments			(240,737)		(664,239)
			─────────		─────────
Loss on ordinary activities before interest			(1,603,389)		(1,890,154)
Finance income			55		5,092
Finance costs			(3,180)		(2,725)
			─────────		─────────
Loss on ordinary activities before taxation			(1,606,514)		(1,887,787)
Income tax expense			163,423		-
			─────────		─────────
Loss on ordinary activities after taxation			(1,443,091)		(1,887,787)
Minority interest			-		31,890
			─────────		─────────
Loss for the year			(1,443,091)		(1,855,897)
			═════════		═════════
Loss per share - basic and diluted			(1.14)p		(4.13)p
			═══════		═══════
There are no recognised gains and losses other than those passing through the statement of comprehensive income.

VALIRX PLC
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2009
					Share capital	Share premium	Merger reserve	Reverse acquisition reserve	Share option reserve	Retained earnings	Total
					£	£	£	£	£	£	£
	Balance at 1 January 2008				1,896,786	145,643	637,500	602,413	-	(1,593,692)	1,688,650
	Changes in equity for 2008
	Loss for the year				-	-	-	-	-	(1,855,897)	(1,855,897)
	Movement in the year				-	90	-	-	2,801	-	2,891
	Issue of shares				1,583,200	(74,613)	-	-	-	-	1,508,587
	Other movements				-	-	-	-	-	28,181	28,181
					─────────	─────────	─────────	─────────	─────────	─────────	─────────
	Balance at 31 December 2008				3,479,986	71,120	637,500	602,413	2,801	(3,421,408)	1,372,412
	Changes in equity for 2009
	Loss for the year				-	-	-	-	-	(1,443,091)	(1,443,091)
	Movement in the year				-	-	-	-	7,646	-	7,646
	Issue of shares				970,382	(2)	-	-	-	-	970,380
	Other movements				-	-	-	-	-	-	-
					─────────	─────────	─────────	─────────	─────────	─────────	─────────
	Balance at 31 December 2009				4,450,368	71,118	637,500	602,413	10,447	(4,864,499)	907,347
					═════════	═════════	═════════	═════════	═════════	═════════	═════════

VALIRX PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2009
				2009		2008
				£	£	£	£
ASSETS
Non current assets
Intangible assets					1,466,297		1,421,207
Property, plant and equipment					8,039		9,608
Financial assets: available-for-sale investments					-		240,737
					─────────		─────────
					1,474,336		1,671,552
					─────────		─────────
Current assets
Stocks				15,659		-
Trade and other receivables				159,879		94,159
Cash and cash equivalents				15,911		15,722
				─────────		─────────
					191,449		109,881
LIABILITIES
Current liabilities
Trade and other payables					(712,254)		(388,850)
Borrowings					(46,184)		(20,171)
					─────────		─────────
Net current liabilities					(566,989)		(299,140)
					─────────		─────────
Net assets					907,347		1,372,412
					═════════		═════════
SHAREHOLDERS' EQUITY
Called up share capital					4,450,368		3,479,986
Share premium					71,118		71,120
Merger reserve					637,500		637,500
Reverse acquisition reserve					602,413		602,413
Share option reserve					10,447		2,801
Profit and loss account					(4,864,499)		(3,421,408)
					─────────		─────────
Total shareholders' equity					907,347		1,372,412
					═════════		═════════
S Vainikka				G Morris
Director				Director

VALIRX PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2009
			2009		2008
		£	£	£	£
Cash outflows from operating activities			(1,017,395)		(791,810)
Taxation			93,818		-
Investing activities
Interest received		55		5,092
Interest paid		(3,180)		(2,725)
Payments to acquire intangible assets		(65,512)		(80,590)
Payments to acquire tangible assets		(3,990)		(6,118)
Cost of minority interest share in subsidiary undertaking		-		(31,988)
		───────		───────
Cash flows used in investing activities			(72,627)		(116,329)
Financing activities
Issue of ordinary share capital		970,382		893,200
Cost of share issue		(2)		(74,523)
Capital element of hire purchase contracts		(1,647)		-
		─────────		─────────
Net cash generated from financing activities			968,733		818,677
			─────────		─────────
Net decrease in cash and cash equivalents			(27,471)		(89,462)
Cash and cash equivalents at beginning of period			(1,187)		88,275
			─────────		─────────
Cash and cash equivalents at end of period			(28,658)		(1,187)
			═════════		═════════

VALIRX PLC
NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2009
1	Cash flows from operating activities
				2009	2008
				£	£
	Operating loss			(1,362,652)	(1,225,915)
	Depreciation of tangible assets			5,148	5,302
	Amortisation of intangible assets			20,422	14,158
	(Increase)/decrease in stocks			(15,659)	-
	Decrease in debtors			3,885	59,146
	Increase/(decrease) in creditors within one year			323,404	295,440
	Other non-cash movements			411	57,258
	Share option charge			7,646	2,801
				───────	───────
	Cash outflows from operating activities			(1,017,395)	(791,810)
				═══════	═══════
2	Cash and cash equivalents		1 January 2009	Cash flow	31 December 2009
			£	£	£
	Net cash:
	Cash at bank and in hand		15,722	189	15,911
	Bank overdrafts		(16,909)	(27,660)	(44,569)
			───────	───────	───────
			(1,187)	(27,471)	(28,658)
			══════	═══════	═══════

Notes to the Financial Statements  

1.    Accounting policies and basis of information  

The financial information contained in this document does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006. The figures for the year ended 31 December 2009 have been extracted from the audited statutory financial statements. The financial statements for the year ended 31 December 2009 received an unqualified auditors' report which did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

END

 

 

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