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Upgrade hints at ValiRx's significant potential

Published: 21:29 14 Apr 2014 AEST

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The City broker Daniel Stewart has lifted its valuation on drug developer ValiRx (LON:VAL) following the recent acquisition of VAL401, a clinical-stage potential treatment for lung cancer.

Repeating his ‘buy’ advice, analyst Vadim Alexandre raised his price target to 1.05p a share from 0.83p.

Holders of the stock would see a near-300% return on their investment if it hits that new marker.

In a note to clients, Alexandre cites the potential to take VAL201 for prostate cancer at a faster pace through clinical trials as a possible share price catalyst.

It has VAL101, the first compound from its GeneICE platform, following in behind, alongside the biomarkers programme. Both hold plenty of promise, the DS analyst said, and VAL401 segues neatly into the current portfolio.

“Given [its] already-established safety profile, and given the low-risk (low upfront  costs) associated with its acquisition and further development, we estimate that  VAL401 is an excellent purchase and that the product is a good addition to ValiRx’s  existing therapeutic portfolio,” Alexandre said in a note to clients.

Last week ValiRx announced it had set up a joint venture firm with Tangent Reprofiling to advance VAL401 through its remaining preclinical development and towards phase II trials.


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