ValiRx plc (LSE:VAL) has signed a nine-month Evaluation and Material Transfer Agreement with McGill University and IRICoR to evaluate a second-generation, orally available RNA helicase inhibitor.
Under the agreement, ValiRx’s subsidiary Inaphaea Biolabs will conduct studies to confirm target engagement and potency. Inaphaea will retain ownership of all data generated during the evaluation phase, strengthening ValiRx’s control over the scientific outputs of the programme.
As part of the structure, IRICoR intends to establish a new Canadian entity, NewCo, to commercialise the evaluation results alongside relevant background intellectual property. ValiRx will hold an option to license the programme into NewCo in return for a 15% equity interest and may also provide up to £2 million in seed funding. Alternatively, should it choose not to proceed, ValiRx would be entitled to a 1.5x return on its evaluation investment.
Management said the deal is designed to promote asset-level development while limiting group-level dilution, attracting external capital, and preserving multiple strategic routes to value creation. The structure also provides flexibility to pursue opportunities across both human and veterinary health markets.
Despite the strategic rationale, ValiRx continues to face financial headwinds, including ongoing losses and reliance on external funding. Market indicators point to a generally bearish technical trend, with valuation remaining constrained by negative earnings and the absence of dividend support.
More about ValiRx plc
ValiRx plc is an AIM-listed life sciences company focused on early-stage cancer therapeutics and women’s health. Through a network of subsidiaries and collaborations with academic and research institutions, the group aims to accelerate the progression of novel drug candidates from pre-clinical research to clinic-ready assets, with a strategy centred on efficient development and eventual partnering or out-licensing.
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