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ValiRx's stake sale provides cash run-way, says Daniel Stewart

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The proceeds from ValiRx's (LON:VAL) VolitionRx stake sale along with recent fundraising strengthens the firm's balance sheet and provides a cash run-way into 2015, reckons house broker Daniel Stewart.

It rates the shares a 'buy' with a target price of 0.83p - that's around a 167% upside from the current price of 0.31p.

The sale of the 510,811 shares, netting US$601,578, completed ValiRx's divestment of non-core technology, noted analyst Vadim Alexandre.

"ValiRx’s most advanced development product, VAL201, has been shown pre-clinically to treat hormone induced refractory prostate cancer.

"The treatment is now set to be evaluated in a first-in-human clinical Phase Ib trial. Preparations are being completed so that all remaining permissions and approvals are obtained for this trial to commence in Q1 2014, with the trial anticipated to yield early results within eight weeks of commencement."

The analyst said data from this "flagship" trial would likely to result in a significant re-rating of the firm's share price."

Quick facts: ValiRx PLC

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AIM:VAL

Price: 27 GBX

Market Cap: £17.56 m

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