ValiRx, the London-listed life-sciences company, saw a rise of 11% in its shares after announcing its expectation of extra income from its subsidiary, Inaphaea BioLabs. Despite experiencing widened losses, ValiRx remains optimistic about the future.
Inaphaea BioLabs: Building a Strong Pipeline
ValiRx revealed that Inaphaea BioLabs has already established a strong pipeline of potential customers and successfully completed its first deal soon after its launch. This subsidiary, established in March, is positioned as the cornerstone of ValiRx’s translational contract research organization. It aims to offer a wide range of preclinical and drug discovery testing services to academic, biotech, and pharmaceutical researchers.
Financial Performance and Business Updates
Shares of ValiRx were trading at 6.75 pence, up by 0.65 pence, as of 1032 GMT.
In terms of financial performance, ValiRx reported a pretax loss of £1.15 million ($1.5 million) for the half-year ended June 30. This is slightly higher than the loss of £1.07 million recorded during the same period last year. The increased loss can be attributed to higher research and development costs, as well as administrative expenses.
ValiRx also disclosed that the expenditure for this period included one-off costs related to the establishment of Inaphaea BioLabs and the acquisition of Imagen Therapeutics assets. The company purchased these assets for £170,000 in June.
As of June 30, ValiRx had £891,246 in cash and cash equivalents.
Future Outlook
ValiRx remains confident about its progress during the first half of 2023 and expressed optimism about the future. While additional income is expected from Inaphaea BioLabs, the company emphasizes the efficient management of resources to sustain momentum in the upcoming period.