London-based life science company ValiRx Plc (AIM: VAL) on Tuesday announced an exclusive Option Agreement through its joint venture, ValiSeek Limited, to license VAL401 to Ambrose Healthcare Limited, a private UK pharmaceutical firm that specialises in rare diseases.

Ambrose Healthcare, established in 2022, aims to develop innovative treatments for patients managed in hospitals and specialist care.

The 12-month exclusivity period grants Ambrose Healthcare the option to execute a global, exclusive license for VAL401 under pre-agreed terms. ValiSeek receives an undisclosed fee, settled through Ambrose Healthcare shares. Upon option exercise, ValiSeek stands to receive up to GBP16m in clinical and commercial milestone payments, along with royalties.

VAL401, a reformulation of the anti-psychotic drug risperidone, demonstrates anti-cancer activity via the Hydroxysteroid-dehydrogenase type 10 enzyme. The drug has shown promise in a Phase 2 clinical trial for end-stage non-small cell lung cancer, with significant improvements in overall survival and quality of life indicators.

Ambrose Healthcare commits to funding the development and commercialization of VAL401. This strategic move aligns with ValiRx's focus on early-stage cancer therapeutics and women's health, advancing innovative science into impactful medicines to enhance patient lives.