ValiRx PLC (AIM:VAL) shares jumped 34% following news of an extended exclusivity agreement with TheoremR for cancer therapeutic candidate, VAL201.
The deal, initially set to expire on December 31, has been extended until May 31.
The decision comes after TheoremRx announced a potential transaction with a NASDAQ-listed company, which ValiRx’s board believes could positively impact the sub-licensing discussions.
While the letter of intent and proposed licence agreement remain non-binding, the market has responded positively to the potential for a successful outcome.
ValiRx cautioned, however, that there is no guarantee the agreement will be finalised or generate revenue.
In early trading, the shares were up 0.21p at 0.84p.