ValiRx PLC on Friday said it is expecting to be asked to extend the exclusivity period between itself and TheroemRx Inc regarding the proposed sub-licence of cancer treatment VAL201.

Shares in ValiRx were down 13% at 19.00 pence on Friday in London.

ValiRx granted an exclusivity period to June 30 to enable TheoremRx to progress its financing round, on which the sub-licence of VAL201 depends.

VAL201 is being studied as a potential treatment for prostate cancer.

ValiRx said that while recent discussions with TheoremRx have been positive, it is now seeking formal confirmation of its progress.

The letter of intent and proposed sub-licence therefore remain non-binding.

ValiRx cautioned that there is no guarantee that this sub-license will be executed or that it will generate material revenue within the expected timeframe, or at all.

Chief Executive Suzy Dilly said: ‘It is important to us at ValiRx to ensure that TheoremRx have sufficient funds to fully progress VAL201 prior to completing the sub-license and committing the project to their care. As such, we have been taking great interest in their progress towards financing. Although the deadline does not expire until 30 June 2022, we are preparing to negotiate to extend this in order to ensure their financing proceeds as expected.’

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