ValiRx (AIM:VAL), the life science company focused on early-stage cancer therapeutics and women's health, said Inaphaea BioLabs completed the evaluation of a second-generation orally available RNA Helicase inhibitor from McGill/IRICoR four months ahead of schedule and the company has exercised its option to negotiate definitive exclusive licence agreements.
The exercise will licence intellectual property and ValiRx's evaluation results into a newly incorporated Canadian NewCo in exchange for equity, agreed royalty and milestone payments and includes a commitment to fund initial pre-clinical development work with an estimated cost of £150,000 for further equity consideration.
NewCo will seek external non-dilutive and dilutive funding and ValiRx, and potentially other investors arranged by ValiRx, may, subject to availability of funds, provide up to £2 million of seed funding in tranches in exchange for further equity under a development plan.
ValiRx expects to pursue a cross-license of companion animal rights into its wholly owned subsidiary, ValiRx Animal Health, to develop applications in the companion animal market.
"This really supports the new approach ValiRx is taking to asset evaluation and licensing and highlights the critical value of our in-house capabilities through Inaphaea," said Mark Eccleston, CEO.
The company said the structure of the agreement is largely agreed, it expects to proceed rapidly to establish NewCo and discussions with a range of external investors are underway, some at due diligence stage.
