ValiRx losses widen as it continues drug development

Cancer therapeutics and diagnostics-focussed life sciences company ValiRx issued its final results for the year to 31 December 2016 on Friday, with its losses widening as it ramped up testing and trials of its products in development.

The AIM-traded firm reported an operating loss of £4.17m, compared to £2.7m in the prior year.

Its total loss for the year was £4.75m, widening from £2.12m in 2015, with the loss per share from continuing operations rising to 8.54p from 5.63p.

On the operational front, the company said its VAL201 candidate had the last phase of its Phase l/ll study to complete, in which patients would receive the highest dose level prescribed in the trial protocol.

The phase ll clinical trial of VAL401 was expected to complete dosing by the end of 2017, with subsequent analysis of the data expected to define the clinical activity of VAL401 and its effect on patient quality of life.

A new pre-clinical indication for endometriosis, VAL301, was currently in development through the reformulation of VAL201.

Necessary regulatory approvals were being sought to enter VAL301 into a clinical trial in 2018.

The expansion of the VAL201 and 401 trials into multi-centre studies was planned to accelerate the accumulation of data and potential trial endpoints.

ValiRx reported “positive enhancements” to its intellectual property portfolio, with multiple new worldwide patents being secured during the period for both VAL201 and VAL401.

A number of peer-reviewed articles had recognise ValiRx's contribution at the “forefront of scientific development”, the board also noted.

The sale of TRAC Technology Rights occurred in in July 2016 for €0.8m, which the company said should be seen within the context of its original purchase of the technology for €75k just “months” earlier.

A placing took place in September 2016 with existing and new investors, which successfully raised £1.2m, and a convertible loan facility with Yorkville also concluded for up to $3.75m in a potential three tranches.

The board also concluded in July that ValiRx would not make further use of the Bracknor facility.

Since the period ended, the company also completed a £1.16m placing on 1 March with existing and new investors.

“The year 2016 has been satisfactory,” commented non-executive chairman Oliver de Giorgio-Miller.

“Our clinical trials have performed well and in line with expectations and the company is looking forward to the next stage of its clinical trials.”

De Giorgio-Miller said the company was also continuing to develop its next generation therapeutics from its preclinical pipeline.

“Based on the positive results of the VAL201 and VAL401 compounds, the ValiRx team continue their discussions concerning late stage clinical studies and regarding potential partnerships and collaborations with pharmaceutical partners.”