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LONDON - ValiRx Plc (AIM:VAL) has signed a new twelve-month agreement with Stingray Bio Limited after concluding its previous evaluation agreement that began in November 2023, according to a press release statement issued Tuesday.
The life science company, which focuses on early-stage cancer therapeutics and women’s health, will perform in-silico lead optimization and in-vitro experiments on lead drug compounds identified during the first agreement. ValiRx will bear the costs of the work, with outsourced activities capped at £56,000 over the period.
Under the new agreement, evaluation results will be jointly owned by both companies. At the conclusion of the evaluation period, ValiRx has an option to license the technology under pre-agreed terms into a Special Purpose Vehicle jointly owned with Stingray. If ValiRx completes IND enabling studies, its ownership will increase to 75%.
Should ValiRx elect not to proceed with the license, rights will return to Stingray. If Stingray secures alternative investment within 12 months of the evaluation’s completion, ValiRx will be entitled to a cash payment of 1.5 times its total investment, estimated at no more than £150,000.
The previous agreement involved preclinical tests on molecules developed by Stingray using a target-based drug design approach for kinases linked to cancer. Inaphaea Biolabs investigated the molecules’ action against various cancer types using patient-derived cell models. However, the technology did not meet ValiRx’s criteria for exercising its licensing option.
Mark Eccleston, CEO of ValiRx, stated that the new approach leverages Inaphaea’s expanding "New Approach Methodology" capabilities and collaboration partners offering complementary services.
The company indicated that while the contract is for 12 months, they anticipate completing the work significantly faster.
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