Ambrose exercises ValiRx oncology option worth up to £16m

(Sharecast News) - ValiRx confirmed on Friday that Ambrose Healthcare has exercised its option to license the VAL401 oncology asset, in a deal worth up to £16m plus royalties. The AIM-traded firm said the agreement, signed via ValiRx's joint venture subsidiary ValiSeek, would include milestone payments and a commitment by Ambrose to fund further development and commercialisation of the asset.

Under the terms of the licensing agreement, ValiRx would receive 576,000 ordinary shares in Ambrose and be entitled to clinical and commercial milestone payments of up to £16m, alongside royalties on future sales.

The initial £6m in milestones could be paid in cash or Ambrose shares, depending on the latter's capital-raising progress.

"We are pleased to be able to complete this technology license for VAL401 with Ambrose," said ValiRx chief executive officer Mark Eccleston.

"We are also exploring short-term opportunities to support a funded preclinical validation for VAL401 through Inaphaea Biolabs, which has 19 pancreatic patient-derived cell models."VAL401, a reformulated version of risperidone with observed anticancer effects, was previously trialled in late-stage non-small cell lung cancer.

Ambrose was planning to expand its potential through new trials, beginning with preclinical research in pancreatic cancer using models developed by ValiRx's Inaphaea Biolabs subsidiary.

Toby Wilson Waterworth, CEO of Ambrose Healthcare, called the deal "an important step in our mission to accelerate safe and effective treatment to rare disease populations, including oncology."

"VAL401 has demonstrated potential therapeutic benefits, and we are eager to accelerate its development with expanded clinical trials and expedited regulatory submissions," he added.

At 1255 BST, shares in ValiRx were up 43.62% at 0.79p.

Reporting by Josh White for Sharecast.com.