ValiRx tanks as it sub-licenses VAL201

UK oncology-focussed biotech ValiRx (AIM: VAL) has entered into a non-binding letter of intent (LoI) with TheoremRx, a recently incorporated US company, a next generation drug developer, to enter into a license agreement on pre-agreed terms to sub-license ValiRx' legacy asset VAL201 for development in the treatment of cancer.

Completion of the agreement is subject to, inter alia, the successful fundraise by TheoremRx. Market reaction was negative, with ValiRx’ shares tumbling nearly 35% to 33.40 pence by late afternoon.

TheoremRx has established a highly integrated approach for the discovery, development and manufacture of peptide and small molecule drugs that modulate targets of clinical interest.