Business
ValiRx acquires Cronos Therap
ValiRx acquires Cronos Therap.
About this update from Valirx Plc
[{"type":"text","content":"\n RNS Number : 9478Y ValiRx PLC 14 July 2008 \n \n\n\nValiRx plc\n\nAcquisition of shares in Cronos Therapeutics and directors' shareholding\n\n14 July 2008, London. ValiRx plc (AIM:VAL, 'ValiRx') the cancer therapeutics and diagnostics company, announces that, pursuant to the call option agreement dated 8 September 2006 entered into between the Company and each of Satu Vainikka, Jacob Micallef, George Morris and Cameron Macdonald (together the 'Cronos Minority Shareholders'), the Company has exercised the option to acquire 6,293 ordinary shares of 1p each in Cronos Therapeutics Limited ('Cronos') from the Cronos Minority Shareholders (the 'Acquisition'). The ordinary shares present some 39.7% of Cronos and at Friday's closing mid market price of ValiRx are valued at approximately £374,000. Following the Acquisition, Cronos will become a wholly owned subsidiary of the Company and will trade as ValiPharma.\n\nFollowing the reverse takeover and admission of the Company to trading on AIM on 3 October 2006 ('Admission'), an option was granted to the Company to acquire the remaining balance of shares of Cronos' share capital, not already held by ValiRx on Admission, for a period of two years from Admission.\n\nThe Acquisition follows the Company's announcement on 26 June 2008 of the promising in vivo results for its lead molecule VAL 101 which uses its gene silencing technology GeneICE™ in preclinical xenograph models of pancreatic cancer. Studies showed that the tumour growth was less than half the size of that seen in the control group. Based on these results, the Company will now initiate further preclinical studies with the aim of progressing VAL 101 toward Phase I regulatory filing by initiating toxicology studies. The Company has also recently expanded its pre-clinical portfolio to include VAL 201 in prostate cancer.\n\nIn consideration for the Acquisition, the Company has issued, in aggregate, 6,500,000 ordinary shares of 6p each in the Company ('Ordinary Shares') to the Cronos Minority Shareholders. Application has been made for 6,500,000 Ordinary Shares to be admitted to trading on AIM&...