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Shares of ValiRx have fallen Tuesday following news the company has signed a Letter of Intent (LOI) with TheoremRx Inc to sub-license its legacy asset VAL201 for development in cancer treatment.
The agreement depends on a successful fundraise by TheoremRx, a private US-based oncology company focused on discovering and developing new treatments that will benefit patients suffering from cancer.
The deal's potential value would be over $61M plus royalties for the first cancer indication. In addition, each oncology indication successfully developed by TheoremRx will generate up to $37.5M of additional value to ValiRx.
The proposed deal structure comprises payments on signature of the Licence Agreement plus fees and near-term milestones totalling US$2.2M before the end of 2023, milestones on further clinical and commercial development events, and royalties. The first payments are expected by the end of this year.
The agreement will see TheoremRx obtain a worldwide licence to ValiRx's VAL201 intellectual property. In addition, ValiRx will retain the rights to develop the VAL201 peptide for non-oncology indications.
A component of the deal will see TheoremRx enter into a service contract with ValiRx to provide consulting services to TheoremRx to support technology transfer, formulation for patent extension and continued clinical development of VAL201.
Dr Suzy Dilly, CEO of ValiRx, commented: “Selecting a commercial partner for VAL201 with the right skills, experience and commitment has been a high priority for ValiRx. I am delighted that the team at TheoremRx has really taken the time to understand the science, the additional development needs and the commercial opportunity for VAL201 in oncology.
Following the news, ValiRx shares have plunged 14.45% to 44.7p
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