ValiRx (LON:VAL) surged in morning trade after its full year report revealed a 157b percent jump in revenues and a significant increase in research and development (R&D) spending.
ValiRx said it made significant advances in the development of both its treatments VAL101 and VAL201, which are aimed at are aimed at leukaemia and prostate and breast cancers, in their pre-clinical and translational programmes and towards the start of in-human Phase I clinical trials.
On the financial front, the group’s revenues reached £455,000 in 2011, up from £177,000 in the previous year.
During 2011, the company raised £3.3 million via a placing to accelerate the pre-clinical progress of the treatments, allowing it to increase research and development (R&D) spending to £421,000 from £120,000 in 2010.
In addition to the placing proceeds, ValiRx received US$1.11 million from the sale of its Belgian subsidiary ValiBIO S.A., which it considered to be outside of its core technologies.
The group ended the year with £1.63 million in the bank.
ValiRx also highlighted the acquisition of the biomarkers arm of Finnish firm Pharmatest for £137,000 in January this year to enhance its R&D capability.
“We have made excellent progress over the past year, which included a significant capital injection, a strengthened balance sheet and with the company's lead therapeutic products being on the cusp of clinical trials,” said chief executive of ValiRx Satu Vainikka.
“We have a strong platform and offering from which to drive ValiRx forward and firmly position ourselves at the forefront of personalised oncology diagnostic and therapeutics development in the sector.”
Investors cheered the full year results, sending shares in ValiRx up 6.5 percent to 0.51 pence by 8:30, valuing the group at £6.35 million.