UK's ValiRx forms joint venture to fast track lung cancer drug to Phase II

UK biopharmaceutical company ValiRx (AIM: VAL) has established ValiSeek, a joint venture company with Tangent Reprofiling. ValiSeek has acquired a worldwide exclusive licence from Tangent to progress the drug VAL401 through its remaining preclinical development and towards Phase II trials for the treatment of lung cancer and other oncology indications.

Trading to begin this week

Pursuant to the JV agreement between ValiRx and Tangent and the patent licence agreement between Tangent and ValiSeek, ValiRx has acquired a 60% shareholding in ValiSeek for an initial consideration payable to Tangent of £110,000 ($183,000) comprising £50,000 in cash and £60,000 in 20,338,984 new ordinary shares in the company at a price of 0.295p per share, being the closing mid-market price of ValiRx’s ordinary shares yesterday (April 7). Deferred consideration, based on reaching pre-determined development milestones, may also be payable in due course. An application has been made to the London Stock Exchange for the Consideration Shares to be admitted to trading on AIM on or around April 11. The Consideration Shares will rank pari passu with the company’s existing ordinary shares.