Morphogenesis Inc

ValiRx PLC 04 December 2006 Monday 4th December ValiRx increases holding in Morphogenesis Inc. - development funding targeted at cancer vaccine technologies - ValiRx plc ('VailRx' or the 'Company') (AIM: VAL), the cancer therapeutics company, today announces that it is providing £193,000 ($375,000) in development funding to emerging US biotechnology company, Morphogenesis Inc (www.morphogenesis-inc.com). In addition, ValiRx has subscribed for 250,000 share warrants, exercisable at 1 US dollar within the next three years, taking ValiRx's holding in the company to: • 1,806,700 ordinary shares • 250,000 warrants Founded in 1996, Morphogenesis Inc. is developing a portfolio of cell therapy products for the treatment of chronic disorders. Its most advanced product, ImmuneFxTM - for which the company was granted a US patent on 22nd August 2006 (US patent 7,094,603) - is due to go into phase II pre-clinical trials in 2007, potentially providing cancer vaccine solutions that target tumours in both humans and pets. It has been estimated by the Company that the canine lymphosarcoma market in the US alone would be in excess of $200 million a year. Commenting on the investment, Chief Executive of ValiRx, Dr Satu Vainikka, said: 'We are excited by the advances Morphogenesis is making. We view its early-stage cell technology and products as not only being significant in their own right but as potentially highly complementary to our GeneICE approach.' Contact Details: ValiRx Ltd WH Ireland Morphogenesis Inc. GTH Communications Dr Satu Vainikka David Youngman Pat Lawman Toby Hall / Jade Mamarbachi +44 (0) 207 408 5400 +44 (0) 161 832 2174 +1 (813) 855 9844 +44 (0) 20 7153 8035 --- ends --- About GeneICE GeneICE - developed by Cronos Therapeutics in which ValiRx holds a 60.28 per cent stake - has the potential to freeze the development and growth of cancerous cells. In March 06, Cancer Research Technology, the development and commercialisation arm of Cancer Research UK, announced it had entered into a partnership to complete key proof of concept studies for the GeneICE approach. It is believed that GeneICE - already tested on six cancer cells - could be relevant to up to 80% of breast cancers, 90% of prostate cancers and 80% of leukaemias. About ImmuneFxTM The ImmuneFxTM cancer vaccine capitalizes on the ability of bacterial antigens to evoke a strong immune response and the ability of the patient's immune system to respond to the presence of the bacterial antigens by directing the force of the immune system specifically to the tumour. Typically, cancer cells do not normally evoke an immune response that is effective in preventing the formation of tumours. This information is provided by RNS The company news service from the London Stock Exchange