The UK-based drug development company ValiRx (VAL) has signed a service agreement with a private US-based oncology firm, TheoremRx, to support the next clinical trial of VAL201.
VAL201 is a short peptide being studied as a potential treatment for prostate cancer, a disease which around 48,500 men are diagnosed with in the United Kingdom each year.
The purpose of VAL201 is that it can potentially prevent cancerous cell proliferation (or growth) without interfering with other functions of either the androgen receptor or SRC kinase.
Under the terms of the agreement, TheoremRx, a recently incorporated company that is focused on developing new cancer treatments, will work with ValiRx to engage with Clinical Research Organisations (CROs) and supporting vendors for the next clinical trial of VAL201.
ValiRx says TheoremRx has established an integrated approach to discover, develop and manufacture peptide and small molecule drugs ‘that modulate targets of clinical interest.’
The Company outlined to investors that today’s service agreement was previously contemplated by a Letter of Intent that was announced back in November 2021.
At the time, ValiRx released a statement outlining the intention of ValiRx and TheoremRx to enter into a sub-license to enable TheoremRx to develop VAL201 in the field of oncology.
It said completion of the sub-license is subject to the successful fundraise by TheoremRx.
Today’s service agreement will enable ValiRx to work as a consultant to TheoremRx and it will receive market rate, fair value consultancy fee, invoiced each calendar month until the termination of the Service Agreement, for the provision of consultancy services, it noted.
The deal will involve introductions to CROs, requesting proposals, reviewing and advising on proposals and co-ordinating the scientific efforts to commence the next clinical trial of VAL201; as well as the enabling of trial set up procedures in parallel to the fund-raising period.
To date, in addition to the signing of a Letter of Intent, a licence between Cancer Research Technology (CRT) and ValiRx has been amended while a sub-license has been approved and is subject to a successful fund-raise, with completion anticipated by end-Q1 2022, it outlined.
The Company also informed investors that the Letter of Intent and proposed sub-license therefore remain ‘non-binding’ and that there is no guarantee that this sub-license will be executed or that it will generate material revenues within the expected timeframe or at all.
Dr Suzy Dilly, CEO of ValiRx, detailed that while this next trial will be both sponsored and financed by TheoremRx, that ValiRx will still continue to play a supporting role in providing project management and scientific expertise in order “to ensure the trial runs smoothly.”
She said the work to date has “set a foundation” on which it intends to build the next clinical trial and has enabled ValiRx to build a good working relationship with TheoremRx’s team.
She added that the signing of the deal formalises the work that ValiRx has been doing and demonstrates the confidence that it has in the sub-license being fully executed in due course.
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