Shares in drug developer ValiRx (LON:VAL) soared 40 per cent today after encouraging results from an independent late pre-clinical study on its lead cancer compound VAL201.
The data showed it significantly inhibited aggressive tumour cell proliferation in prostate cancer and reduced the spread of secondary tumours by up to 50 per cent.
The compound has potential for treatments for ovarian and breast cancer, as well as for endometriosis, a gynaecological condition that causes abnormal cell growth.
Today’s findings represent “a major step forward”, the company told investors, adding that the results independently confirmed and built on earlier studies it had carried out.
Chief executive Dr Satu Vainikka said: “I am absolutely thrilled by these latest findings for VAL201.
"We knew from previous studies last year that the compound was showing effect at preventing proliferative tissue growth in live studies and with reduced side effects.
“With this data and the fact that we can now curtail and even substantially reduce cancerous growth, a treatment for this horrible disease, which affects many millions across the globe, is tantalisingly closer."
Speaking to Proactive Investors about the news, she added: "It's very important for the company as this is our lead compound."
VAL201, she said, was the furthest in the firm's development pipeline, so getting "from pre-clinical to clinical is very important for a company like us".
Explaining that the compound was potentially useful for all cancer sufferers, whose cancers were driven by hormone action, Dr Vainikka said the firm would now continue with the pre-clinical development of the compound.
She added that ValiRx was talking to regulators and would "hopefully" get a green light for first clinical studies.
VAL201 works by finding and acting on the note that causes the unregulated hormone action in such cancers as prostate, ovarian and breast.
Patients with prostate cancer typically develop metastasis (the spread of that cancer into other organs as secondary tumours) and almost all patients who go through the end-stage of cancer experience this proliferation of cancer cells into other organs or areas of the body.
So, even if the primary tumour is successfully treated, the disease can often have already spread.
Treatment to combat this metastatic spread is crucial for both patient survival and quality of life.
Following today's announcement, analyst Vadim Alexandre, an analyst at broker Daniel Stewart, was guardedly optimistic but said he could not make a call on the stock until he had more detail about the scope of the studies.
He said: “Regardless, it’s clearly good news and it’s going to have a positive effect on the share price.”
He added: “The metastasis is the most interesting aspect of the news. VAL201 is showing itself to be a potent drug, which is also good news for ValiRix's other indications too.”
On the back of the news, ValiRix shares are up 41 per cent to 0.55 pence.