In early trading, shares of ValiRx PLC (AIM:VAL) surged by 28% after it was revealed its subsidiary, ValiSeek, had entered into an exclusive option agreement to license its VAL401 asset to Ambrose Healthcare, a private UK pharmaceutical company focusing on rare diseases and specialist care.
The deal grants Ambrose Healthcare a 12-month exclusivity period to exercise the option for a global, exclusive licence of VAL401 under predetermined terms.
ValiSeek received an undisclosed, nominal fee for this agreement, compensated through shares in Ambrose. If the latter company then exercises the option, ValiSeek stands to receive clinical and commercial milestone payments totalling up to £16 million, in addition to royalties.
As per the terms, Ambrose will be responsible for completing the development and commercialisation of VAL401, bearing all associated costs.
At 8.49 am, ValiRx stock was up 2.8p at 12.68p.