Imperial spin-out agrees global distribution deal for viral diagnostic

Distribution agreement

ValiRx plc said its subsidiary, ValiBio SA, a cancer diagnostics specialist, agreed an exclusive worldwide distribution agreement with medical devices company Biofield Corp for its human papilloma virus (HPV) diagnostic test for cervical cancer, and a worldwide distribution agreement (excluding Belgium) for its Hypergenomics and Nucleosomics diagnostics products.

Under the terms of the agreement, ValiRx, (the former Cronos Therapeutics, a spin out of Imperial College, London) has also sold a 10 percent stake in its wholly owned diagnostics subsidiary, ValiBio, for €600,000 in cash to Biofield with an option for Biofield to purchase an additional 15 per cent of the Belgium-based operation.

There are over 100 different HPV viruses with certain subtypes carrying a high risk of causing cervical cancer. The global market for HPV testing is projected to be $250m in 2008, with the potential for the market to grow if HPV screening replaces current conventional cervical cancer testing methods.

Satu Vainikka, ValiRx’s Chief Executive Officer said, “This distribution agreement provides ValiBio SA with the route to the international oncology diagnostics market with a major provider of medical and health diagnostics. We are confident there is considerable market potential for these types of novel diagnostic products.”

He added, “This commercial agreement also secures additional funding for our business at this important time, which will be applied to the continued development of our next generation cancer diagnostics as well as to the progression of our cancer therapeutics.”