REG - ValiRx PLC - Update on Evaluation Agreement with Stingray Bio

ValiRxAnnouncement

05/08/2025 10:00

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RNS Number : 0294U  ValiRx PLC  05 August 2025

5 August 2025

ValiRx PLC

("ValiRx" or the "Company")

 

Update on Evaluation Agreement with Stingray Bio

London, UK - ValiRx Plc (AIM: VAL), a life science company focusing on
early-stage cancer therapeutics and women's health provides the following
update on the Evaluation Agreement with Stingray Bio Limited ("Stingray")
announced on 10 November 2023.

Under the terms of the Evaluation Agreement entered into, a defined series of
preclinical tests was performed on a lead series of molecules developed by
Stingray using a target-based drug design approach, to create novel candidate
drugs for kinases with well-validated links to cancer. Inaphaea Biolabs
("Inaphaea") investigated the action of the molecules against a range of
cancer types using patient derived cell models whilst specificity and safety
profiles of lead candidates nominated from within the series were assessed
through collaborative partners. This twelve-month program was designed to
validate the technology and determine suitability for commercialisation. At
the conclusion of the evaluation period, the technology had not met the strict
criteria for the Company to exercise its option to license the technology on
pre-agreed terms.

ValiRx has entered into a new format, twelve-month, agreement with Stingray to
perform in-silico lead optimization of potency and target selectivity, and
in-vitro based experiments on lead Stingray drug compounds identified during
the first agreement.

The cost of the work will be borne by ValiRx and outsourced activities will be
capped at £56,000 over the period. During the evaluation period, any
evaluation results generated will be jointly owned by ValiRx and Stingray. At
the conclusion of the evaluation period, the Company has an option to license
the technology, under pre-agreed terms, into a Special Purpose Vehicle jointly
owned with Stingray. On completion of IND enabling studies, ValiRx's ownership
will increase to 75%.

If ValiRx elects not to proceed with the license, rights will return to
Stingray and, if Stingray secures alternative investment within 12 months of
the evaluation's completion, ValiRx will be entitled to a cash payment of 1.5x
its total investment (estimated at no more than £150,000, including
outsourced work and internal resources) and all evaluation results generated
during the programme will be assigned to and owned by Stingray.

Mark Eccleston, CEO of ValiRx commented "We are pleased to progressing the
Stingray assets through our new hybrid approach to evaluation and development
programmes. Whilst the intention is to develop assets which we can in-license,
by retaining some upside in the asset if we elect not to proceed to license,
we can consider shorter and a broader range of projects where we see an
opportunity to add significant value. The contract is for 12 months but we
envisage completing the work significantly faster than this. This approach
leverages Inaphaea's expanding "New Approach Methodology" capabilities
promoted by the FDA as an alternative to non-animal testing as well as our
broad range of collaboration partners offering complementary services. Under
this new approach, the partner retains the right to seek additional funding
for the asset which can lead to earlier partnering opportunities in the SPV or
transition from an evaluation to a revenue generating service contract. This
structure is informing the design of future evaluation programmes within
ValiRx."

Sunil Shah, director of Stingray commmented "We're excited to see the progress
of ValiRx's latest programme, which focus on advancing innovative oncology
assets especially in women's health space - an area which remains
significantly undeserved with medical needs. The collaborative, hybrid model
adopted with Stingray Bio not only strengthens the pathway of these novel
compounds but also reflects ValiRx's commitment to de-risking early-stage
innovation and driving it forward. We strongly believe that ValiRx's efforts,
combined with Stingray's foundational contributions, can help realise the
commercial potential of new cancer therapeutics. We look forward to seeing
this programme evolve as it moves closer to potential clinical development."

To hear more about this update on the Stingray Bio Evaluation Agreement,
please visit our website where Mark Eccleston, CEO has prepared a short video:
https://valirx.com/link/eolBYr (https://valirx.com/link/eolBYr) . Feel free to
submit your questions for the ValiRx management team here, and we will
endeavour to get back to you in due course.

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR"). The Directors of the Company
take responsibility for this announcement.

*** ENDS ***

Engage with the ValiRx management team directly by asking questions, watching
video
summaries and seeing what other shareholders have to say. Navigate to
our Interactive Investorhub here: https://valirx.com/s/cc8ef3

For more information, please contact:

 Investor questions on this announcement           https://valirx.com/link/eolBYr

 We encourage all investors to share questions

 on this announcement via our investor hub
 ValiRx plc                                        Tel: +44 115 784 0026

                                                   www.valirx.com (http://www.valirx.com)

 Dr Mark Eccleston, CEO                            Mark.Eccleston@valirx.com

 Cairn Financial Advisers LLP (Nominated Adviser)  Tel: +44 (0) 20 7213 0880

 Liam Murray / Ludovico Lazzaretti

 Shard Capital Partners LLP (Sole Broker)          Tel: +44 (0) 20 7186 9000

 Damon Heath

 V Formation (Public Relations)                    +44 (0) 115 787 0206

                                                   www.vformation.biz (http://www.vformation.biz)

 Lucy Wharton - Senior PR Executive

 Sue Carr - Director                               lucy@vformation.biz

                                                   sue@vformation.biz

Subscribe to our news alert service: https://valirx.com/s/f298d1
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Notes for Editors

About ValiRx

ValiRx is a life science company focused on early-stage cancer therapeutics
and women's health, accelerating the translation of innovative science into
impactful medicines to improve patient lives.

ValiRx provides the scientific, financial, and commercial framework for
enabling rapid translation of innovative science into clinical development.

Using its extensive and proven experience in research and drug development,
the team at ValiRx selects and incubates promising novel drug candidates and
guides them through an optimised process of development, from pre-clinical
studies to clinic and investor-ready assets.

ValiRx connects diverse disciplines across scientific, technical, and
commercial domains, with the aim of achieving a more streamlined, less costly,
drug development process. The team works closely with carefully selected
collaborators and leverages the combined expertise required for science to
advance.

Lead candidates from ValiRx's portfolio are outlicensed or partnered with
investors through ValiRx subsidiary companies for further clinical development
and commercialisation.

ValiRx listed on the AIM Market of the London Stock Exchange in October 2006
and trades under the ticker symbol: VAL.

For further information, visit: www.valirx.com (http://www.valirx.com)

 

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