Volition - update

RNS Number : 2049I

ValiRx PLC

10 June 2011

 



10 June 2011

ValiRx Plc

("ValiRx" or the "Company")

Volition - update

"ValiRx derives value from transfer of a patent application that is outside of its core technologies to Volition"

ValiRx (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, announces that, further to the notifications made on 23 September 2010 and 11 October 2010, the Company has agreed to vary certain terms of the sale and purchase agreement ("Agreement") between Singapore Volition Pte. Limited and the Company in relation to the sale of the Company's former subsidiary ValiBIO SA and the sublicence of the Company's rights to hypergenomics technology that was associated with the sale.

The original Agreement provided for the payment to the Company of US$400,000 in installments and of the issue to the Company of US$600,000 of ordinary shares in Volition to the Company and the repayment to the Company of certain expenses.

In consideration of a commitment by Volition to the Company to issue a further US$510,000 of ordinary shares in Volition (so now taking the aggregate value to US$1.11m), the Company has agreed to:

(a)   transfer its rights to a patent application for certain diagnostic applications for an endometriosis device; and

(b)   novate the rights of a patent licence concerning hypergenomics technology to Volition, the rights were originally provided to Volition by way of a sublicence.

The novation is subject to a "back-licence" to ValiRx's wholly-owned subsidiary, ValiPharma for the use by ValiPharma of hypergenomics technology in connection with ValiRx's GeneIce and ARP technologies.

The board of ValiRx considers the endometriosis patent application as being outside ValiRx's core technologies and the replacement of the sublicence by a novation of the hypergenomics technology does not have a material commercial impact on the Company.

The issue of US$1.11m worth of shares by Volition will take place on the earlier to occur of an initial public offering by Volition, or 7 October 2011 at a valuation by reference to the Volition IPO price or, if there has been no IPO, to the average subscription price between September 2010 and 7 October 2011. The board of ValiRx anticipates that the Company will have at least a 20 per cent. shareholding in Volition, although the precise percentage interest is dependent upon the terms of Volition's future fund raisings and valuation of any possible IPO.

Dr Satu Vainikka, CEO of ValiRx, commented: "We are pleased to have been able to amend the agreements with Volition deriving substantive value from the transfer of a patent application, that is outside of our core technologies. ValiRx continues to work closely in association with Volition and I am pleased to see our stake and investment in Volition increase further to both companies' mutual advantage."

Cameron Reynolds, CEO of Volition, commented: "This patent application fits well in our package of blood-based diagnostics.  The transfer of the technology is a very positive outcome for both our companies, and we are looking forward to continuing our close relationship with ValiRx."

For more information, please contact:

ValiRx plc	www.ValiRx.com
Dr Satu Vainikka	Tel: [phone]
Cairn Financial Advisers LLP
Nominated Adviser	Tel:[phone]
Liam Murray / Avi Robinson
Hybridan LLP
Broker	Tel: [phone]
Claire Noyce
Peckwater PR	Tel: [phone]
Tarquin Edwards	[e-mail]

Notes for Editors

ValiRx Plc

ValiRx Plc is a biopharmaceutical company developing novel technologies and products in oncology therapeutics and diagnostics. The product focus is in the epigenomic analysis and treatment of cancer, but the technologies can be applied to other fields as well, such as neurology and inflammatory diseases.

The Company listed on AIM in October 2006 and is creating a portfolio of innovative products through investment in specific development projects. It actively manages projects within this portfolio as a trading company and is not an investment vehicle. The ValiRx business model spreads the risks of life science technology developments by minimising financial exposure and running a set of projects to defined commercial endpoints. This maximises returns to shareholders by adding value at the earlier stages where value increases per investment unit are the greatest. 

The Company operates through the following divisional companies:

·      ValiMedix is the sales and distribution division of ValiRx

·      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.  ValiRx is leading a consortium of biotechnology companies that are completing pre-clinical studies based on ValiRx's GeneIce technology platform, prior to entering clinical trials.

In parallel, during the course of 2010, the Company has launched a range of home self-diagnostic kits that screen for high prevalence conditions, such as diabetes, urinary infections, high cholesterol, among other serious conditions.  The Company has reported that sales of these products are in line with expectations and continuing to show an upward trend.  Additionally, ValiRx hopes to continue the expansion of its range in subsequent quarters, further generating incremental revenue as a consequence.

 

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