ValiRx Plc (LON:VAL) is a clinical-stage biopharmaceutical company focused on the development of therapeutics for the treatment of cancer, associated biomarkers and companion diagnostics. The company’s two leading assets are in clinical trials: VAL201 (Phase I/II) – a peptide for advanced prostate cancer and potential to treat other hormone- induced indications; and VAL401 (Phase II) – a novel reformulation of risperidone, in trials for lung cancer. Interim results highlighted the fact that ValiRx is advancing well both its clinical and pre-clinical products, and crucially, read-outs of clinical results are expected at the end of the year for VAL201 and VAL401.
Strategy: ValiRx operates as a virtual business, out-sourcing most of its activities. The core strategy is to develop its therapeutic assets through the clinical pathway and seek a partner/licensing deal to complete the development programme and regulatory submissions to commercialise the products.
Interims: Results provided the occasion for ValiRx to update the market about the on-going clinical trials with VAL201 and VAL401, and pre-clinical works. Proceeds from £0.5m Placing will be used to progress the dose escalation study with VAL201 and continued development of GeneICE/VAL101 and VAL301.
Clinical pipeline: The end of calendar year will be crucial for ValiRx with read-outs from both its clinical trials with VAL201 and VAL401. Early data released on both trials have been positive, with good safety and tolerability recorded, and are expected to pave the way to a potential licensing deal.
Pre-clinical pipeline: Results from late pre-clinical studies on VAL301 suggest superiority compared to the standard of care. ValiRx aims to bring VAL101 into the clinic in 2018, since improvements to the manufacturing process of VAL101 compound have accelerated its future entry into the clinic.
Investment summary: ValiRx Plc is undervalued. The reason for this is certainly its need for more capital to advance its clinical programmes, thereby building value. Given the clinical progress seen to date, the company should be attracting potential commercial partners and/or institutional investors in order to achieve the real value of its assets.