ValiRx plc Annual Report and Accounts 2015
ONCOLOGICAL 
AND THERAPEUTIC 
TECHNOLOGIES AND 
BIOMARKERS Strategic Report
HIGHLIGHTS
WELCOME T O  
VALIRX PLC
Operational Highlights
• Significant year for ValiRx both in terms of restructuring  
 the capital of the Company and technical advancements  
 made with both therapeutic compounds.
• Phase l/ll Clinical Trial of VAL201 has confirmed that  
 compound is well tolerated up to a putative therapeutic  
 dose and has shown a high degree of safety, with no  
 significant adverse events being reported.
• Expansion of VAL201 trial into a multi-centre study.
• VAL401, for the treatment of lung cancer and other  
 oncology indications, is in the late to final stages of  
 preparation prior to its Phase II Clinical Trial.
• Positive enhancements of ValiRx biomarker development  
 programme, with new European, Japanese and US patents  
 being secured during the period.
• TRAC actively marketing itself to third parties and growing  
 its revenue stream. 
• Expansion into the US with the opening of a ValiRx office  
 in Cambridge, Boston, Massachusetts in November 2015.
Our Product Pipeline
We aim to make a significant contribution in 
“precision” medicine and science, namely to engineer 
a breakthrough into human health and well-being, 
through the early detection of cancer and its 
therapeutic intervention.
ValiRx plc is a biopharmaceutical 
company developing technologies  
and products in oncology 
therapeutics and diagnostics.
In Summary
• £4.0 million Convertible Loan Note Facility agreed with  
 Bracknor on 1 April 2016.
• Placing to raise £0.5 million in February 2016 with existing  
 and new investors.
VAL401
Read more on p. 15
VAL101 (GeneICE, VAL101 & TRAC)
VAL201
Read more on p. 12
Read more on p. 13
1
Annual Report and Accounts 2015   ValiRx plc 01   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015
Strategic Report
 
Highlights IFC
Chairman’s Statement 02
How we Create Value 04
Our Progress 06
Marketplace 08
Licensing Collaborations 10
Therapeutics 12
Chief Executive’s Report 16
Risks and Uncertainties 18
Corporate Social Responsibility 19
Corporate Governance 19
Governance
 
Board of Directors 20
Directors’ Report 22
Independent Auditors’ Report 24
Financial Statements
 
Consolidated Statement 
of Comprehensive Income 25
Consolidated Statement 
of Changes in Equity 26
Consolidated Statement  
of Financial Position 27
Consolidated Cash Flow  
Statement 28
Notes to the Consolidated  
Cash Flow Statement 29
Notes to the Consolidated  
Financial Statements 30
Company Statement  
of Financial Position 45
Company Statement  
of Changes in Equity 46
Notes to the Company  
Financial Statements 47
View more on our website  
www.valirx.com
Chairman’s Statement  
p. 02
Therapeutics 
p. 12 to 15
Marketplace 
p. 08
Chief Executive’s  
Report p. 16 02   Annual Report and Accounts 2015   ValiRx plc
CHAIRMAN’S STATEMENT
“I am pleased to report 
that in the last 12 months 
we have seen continued 
progress across all areas 
of our business.”
Oliver de Giorgio‑Miller
Chairman
£203,391
In grants towards R&D (2014: £210,802).
£232,465
Cash and cash equivalents  
of £232,465 (2014: £452,824).
£82,603
Revenues for the year £82,603  
(2014: £87,558).
I am pleased to report that in the last 12 months 
we have seen continued progress across all areas 
of our business.
2015 proved to be a significant year for ValiRx 
both in terms of restructuring the capital of the 
Company and technical advancements made 
with both our therapeutic compounds, VAL201 
and VAL401. We also saw development in our 
Finnish subsidiary, ValiFinn, which includes TRAC 
and our biomarker technologies.
We have taken a number of steps forward in the 
development of VAL201 in terms of its Phase I/II 
Clinical Trial and we have also completed the final 
preparatory pre-clinical work for VAL401, which 
now means that this drug candidate is about to 
enter a pivotal Phase IIb efficacy trial.
Our Finland–based operation continues to 
generate interest among Clinical Research 
Organisations (“CROs”) regarding our unique 
TRAC gene expression analysis platform 
technology, which we acquired in February 2015. 
We have seen positive enhancements of our 
own biomarker development programme, with 
new European, Japanese and US patents being 
secured during the period.
ValiRx attended the 2015 BIO International 
convention in Philadelphia, USA, which took 
place in June 2015 alongside many other leading 
UK biotechnology and biopharma businesses. 
This invitation to participate in the ‘Market Visit’ , 
organised by the Mayor of London’s Export 
Programme, was very welcome recognition and 
an endorsement of the potential inherent in the 
Company’s product portfolio to answer unmet 
needs in the treatment of cancer. Furthermore, 
the visit enabled us to interface with larger US 
biotech companies and investors and on the 
back of an encouraging response from them, we 
have established a presence in the US with the 
opening in November 2015 of a ValiRx office in 
Cambridge, Boston, Massachusetts. Recently,  
we engaged a leading US investor relations  
firm to further discussions with potential  
partners and these are continuing.
Our financial results show revenues for the year 
at £82,603 (2014: £87,558) with net operating 
expenses falling by 4% to £3,034,139 (2014: 
£3,164,664) after receipts of £203,391 (2014: 
£210,802) of grants towards R&D. The net loss 
for the year decreased to £2,118,335 (2014: 
£3,160,031) resulting in a reduced loss per share 
(basic and diluted) of 6.66p (2014: 13.48p). As at 
31 December 2015, the Group had cash and cash 
equivalents of £232,465 (2014: £452,824); however, 
since the period end, our cash position has 
increased following a further raising of equity  
and debt finance, which we believe positions  
the Group well to reach its goals across all  
areas in 2016.
Strategic Report 03   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015
Looking to the future, I believe the Company is 
making encouraging progress towards achieving 
a number of its goals. The expansion of the 
VAL201 trial into a multi-centre study in prostate 
cancer and other solid tumours, is underway and 
this expansion will expedite the production of 
data within a shorter timeframe. We are poised 
to enter VAL401 into the clinical trial process 
and anticipate the availability of data from this 
pivotal Phase IIb efficacy trial. The opportunity 
for developing and exploiting the compound 
VAL201 for a further indication in the treatment 
of endometriosis or hormone induced abnormal 
cell growth in women, via partnering and 
collaboration, is similarly fast approaching and  
the necessary preparatory steps are underway.
A Dynamic Portfolio  
with Products in the Clinic and a Pre-clinical Pipeline
VAL201
NAV3
Optimisation Discovery Product Phase I Phase II Pre-clinical 
Product Pipeline
VAL201 VAL101 (GeneICE, 
VAL101 & TRAC)
VAL401
Finally and in the months ahead, we will seek to 
exploit value from our portfolio of technological 
assets, whilst looking to further build on and 
strengthen the Group’s balance sheet.
Oliver de Giorgio-Miller
Chairman
19 May 2016
ValiPharma
ValiPharma is the therapeutics 
division, with two embedded 
technologies primarily directed  
at the treatment of cancers.
ValiFinn
ValiFinn is the biomarkers and 
diagnostic development division. 
ValiRx acquired through its ValiFinn 
subsidiary, the complimentary TRAC 
technology later in the year to 
strengthen the portfolio.
ValiSeek
ValiSeek is a joint venture between 
ValiRx and Tangent Ltd to develop 
Val401 in lung cancer and potentially 
other indications.
The Group operates through the following 
divisional companies: 
Read more on p. 12 Read more on p. 13 Read more on p. 15
1
VAL101
Endometriosis
VAL401 HOW WE CREA TE VALUE
Strategic Report
Commercialise lead V AL201 anti-
cancer therapy for prostate cancer.
VAL201 is a novel and exciting approach for targeted cancer 
chemotherapy and is currently in a Phase I/II Clinical Trial 
in subjects with hormone resistant prostate cancer. The 
compound selectively halts tumour growth by specifically 
preventing the proliferation of tumour cells while leaving 
DNA synthesis unaffected; hence tumour growth is 
suppressed and metastases are significantly reduced.
Develop the potential of VAL401.
VAL401 is a re-formulation of a generic anti-psychotic drug, 
in an oral form, which has shown pronounced anti-cancer 
properties in pre-clinical testing. Due to the safety profile 
of the active drug, VAL401 is accelerating directly from pre-
clinical studies into a Phase 2 efficacy trial in non-small cell 
lung cancer patients,
Continue promising testing  
in V AL101. 
ValiRx’s proprietary GeneICE technology enables selective 
silencing of overzealous, rebellious or inappropriate activity 
by specific genes, which contribute to many disease states 
including cancers and inflammatory conditions, Alzheimer’s 
and auto-immune diseases. The specially designed molecule 
mimics natural mechanisms, with one part of the molecule 
identifying and targeting the rebellious gene and the other 
part silencing it.
Our Strategy 
We focus on the treatment of cancer and associated Biomarkers, 
specialising in epigenomic and genetic analysis. We will achieve our 
goals through early detection of disease and therapeutic intervention.
1
ValiRx is a clinical stage biotechnology 
company with a focus in cancer and 
which has three classes of drugs in 
development with a clear goal to 
address unmet needs.
Our Business Model 
Our business model spreads the risks of life science technology 
developments by minimising financial exposure and running a 
set of projects to defined commercial endpoints. This maximises 
returns to shareholders by adding value at the earlier stages  
where value increases per investment unit are the greatest.
Vision
Our vision is to make a structural change in science.
Aim
Our aim is to engineer a scientific breakthrough  
in human health and wellbeing.
Strategy
We will achieve these goals through early detection  
of disease and therapeutic intervention.
Reduce risk in new 
product development 
through rigorous clinical 
and commercial due 
diligence.
Maximise returns to shareholders 
by adding value at the earlier 
stages where value increases per 
investment unit are the greatest.
Select drug candidates 
and technologies with 
evidence-based potential 
to address unmet 
market needs.
1
3
2
04   Annual Report and Accounts 2015   ValiRx plc • Our Phase l/ll Clinical Trial of VAL201 has confirmed that the compound  
is well tolerated up to a putative therapeutic dose and that it has 
shown a high degree of safety, with no significant adverse events  
being reported in its study to combat metastatic prostate cancer  
and other advanced solid tumours.
• With safety and tolerability in VAL201 now shown, we are starting  
to look for efficacy. 
• Endometriosis – We have started to design the protocol to test  
VAL201 for treatment of this debilitating female condition. 
• Biomarker Developments are being explored with regard  
to VAL201 for use in clinical trials and beyond. 
• VAL401 for lung cancer and other oncology indications  
– Clinical Trial to commence in H1 2016. 
• GeneICE Platform – Development of VAL101 is in late-stage  
oncology pre-clinical studies with partners.  
1
  
Industry risk
2
  
Competition risk
6
  
Intellectual property risk
2
  
Competition risk
4
  
Clinical and regulatory risk
6
  
Intellectual property risk
3
  
Financial risk
5
  
Counterparty risk
6
  
Intellectual property risk
7
  
Return on investment
What we’ve Achieved in 2015
2015 has been a significant year for ValiRx both in terms  
of restructuring the capital of the Company and technical  
advancements made with both therapeutic compounds. 
Our Risk Management
ValiRx is a clinical stage biotechnology company and in common with 
other companies operating in this field, is subject to a number of risks 
and uncertainties. The principal risks and uncertainties identified by 
ValiRx for the year ended 31 December 2015 are indicated below.
Read more on p. 06 to 07 Read more on p. 18
05   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015 06   Annual Report and Accounts 2015   ValiRx plc
OUR PROGRESS
Exclusive Supplier  
of SELFCheck
ValiMedix Ltd becomes the 
exclusive supplier of the SELFCheck 
brand of Personal Health Screening 
Tests, which is increasingly available 
in pharmacies throughout the UK.
ValiRx Finland Acquired 
ValiRx acquires Finnish Subsidiary ValiRx Finland. 
The acquisition will benefit from the favourable 
environment for regulated medical and clinical 
studies in the Nordic region.
Successful Collaboration  
with Oxford University 
Successful outcome of a study conducted with 
Oxford University where VAL201 has proven to 
prevent cancerous growth in live models with 
no serious side effects. Followed by a jump in 
share price due to the announcement. 
ValiRx Raised £900,000 
ValiRx raised £900,000 through 
a placing to fund ongoing 
pre-clinical work on its cancer 
treatments and pipeline projects.
ValiRx Granted  
Patent in US 
ValiRx is granted a patent in the 
US for a cancer screening method, 
using specific gene biomarkers in 
the field of genetics and oncology.
ValiRx Granted  
Patent in Australia 
ValiRx has been granted patent 
protection in Australia for VAL201. 
The new patent will enable ValiRx 
to extend its current patent 
protection and add to its portfolio.
Agreement with First Health 
Products Limited 
ValiMedix enters into a UK distribution 
agreement with First Health Products 
Limited for the distribution and sale  
of ValiRx’s SELFCheck health screening 
products in the UK. 
 
ValiRx Raised £2.9 million 
Successful placing to raise £2.9 million 
allows VAL201 to enter into in-human  
clinical trials.
Strategic Report
ValiRx was formed in 2006 – here is  
a brief look at our recent development. 
2012 2013 2011
£2.9m 07   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015
ValiRx Raised £1 million
 
ValiRx raised £1 million through  
a placing of 307 million shares with 
institutional and other investors.
ValiSeek Launched
ValiSeek was set up to speed 
the progress of partner Tangent 
Reprofiling’s lung cancer treatment, 
now called VAL401, towards Phase 
II trials.
NAV3 Granted  
Patent in Japan 
 
ValiRx receives patent approval  
from the Japanese patent office  
(JPO) for NAV3.
New Office in Boston
 
ValiRx opens a new office in 
Boston, USA. Facilitating greater 
interactions with the leaders in the 
field of oncological development. 
VAL201 Phase l/ll  
Dose Escalation
 
Lead drug VAL201 in Phase l/
ll dose escalation clinical trials in 
patients with locally advanced or 
metastatic prostate cancer and 
other advanced solid tumours at 
University College London Hospital.
Collaboration with  
the German Cancer 
Research Centre 
 
Detection of GeneICE targeting 
technologies and compounds 
accelerating through collaboration 
with world-renowned R&D 
institution, the German Cancer 
Research Centre, to bring 
personalised cancer treatment 
from laboratory to bedside.
VAL201 Efficacy, NAV3 
Biomarker Granted Patent  
in Australia
Lead Compound ValiRx’s drug substance 
VAL201 has efficacy in prostate, breast and 
ovarian cancer models and also addresses 
endometriosis or hormone-induced 
abnormal cell growth in women whilst  
the NAV3 Biomarker receives approval  
by the Australian patent office. ValiRx  
and Phamatest Services Limited is also 
awarded a new Eurostars II grant for  
further GeneICE development.
NAV3 Granted  
Patent in Europe
 
ValiRx receives European Patent  
Grant for NAV3 biomarker. 
 
Collaboration with DKFZ
 
ValiRx enters into a collaboration 
agreement (the “Agreement”) with  
the DKFZ to further develop GeneICE. 
 
Phase I/II Clinical trial  
VAL201 Approved
 
A Phase I/II Clinical trial on VAL201 
is approved by the Medicine and 
Healthcare Products Regulatory  
Agency (“MHRA”). 
2014 2015 “
08   Annual Report and Accounts 2015   ValiRx plc
We focus on the treatment of  
cancer and associated Biomarkers, 
specialising in epigenomic and  
genetic analysis.
The principal activity of the Group continued 
to be that of an oncology therapeutics and 
companion diagnostics development company.
The Group has undertaken to develop a novel 
and ground-breaking class of therapeutics across 
a number of fields in oncology and has taken 
its lead compound, Val201, into Phase I/II clinical 
trials. The Company listed on the Alternative 
Investment Market (“AIM”) of the London Stock 
Exchange in October 2006.
ValiRx now has two compounds in clinical 
development and a growing pipeline to address 
an expanding market of high unmet medical 
need. Its technologies originate from world-class 
universities and institutes and all have substantial 
patent protection. 
The Group’s corporate focus is to partner or out-
license within the Phase II development pathway 
and to this end a new office has been opened in 
Boston, USA.
Prostate cancer is the most common type of 
cancer in men, generally affecting men over 
the age of 50. Around 34,000 men in the UK 
are diagnosed with prostate cancer each year. 
Prostate cancer only occurs in men and it is 
located underneath the bladder. This cancer 
begins with an uncontrolled growth of cells  
and develops slowly, sometimes never causing  
a problem. However, most cancers will spread,  
in which case, the patient will need a treatment. 
The global market for the prostate cancer 
therapeutics market is increasing, driven primarily 
by the growth in the hormone-refractory prostate 
cancer therapeutics markets. Hormone therapy 
using a combination of hormone therapies 
such as LHRH agonists and androgen receptor 
antagonists is a prominent treatment regime.
3
Prostate Cancer
120
More than 120 men in  
the UK are diagnosed with  
prostate cancer a day.
4
1 in 8 men will get prostate  
cancer in their lifetime.
4
$100bn
Global market for cancer  
therapeutics is expected to  
cross $100 billion in 2015.
1
Strengthening our Operational 
and Investor Presence
A new office has been opened in Boston, USA. 
The operation has been formed to encourage and 
facilitate greater interaction with academic, clinical 
and business leaders in the field of oncological 
development. 
ValiRx’s expansion into the 
US is part of our strategy 
to strengthen our investor 
base and to take advantage 
of close proximity to the 
biggest biotech market  
in the W orld. ”
Dr Satu Vainikka
Chief Executive Officer
MARKETPLACE
Strategic Report 09   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015
Whereas lung cancer in men peaked in the 
late 1980’s, with a rate of over 50/100,000 
men and falling by about a third thereafter to 
about 36/100,000 men, the rate in EU women 
has been growing over the past two decades. 
Causative factors of lung cancer include smoking, 
responsible for more than 80% of cases.
NSCLC is defined as a cancer of the lung which 
is not of the small cell carcinoma type. The term 
“non-small cell lung cancer” applies to the various 
types of bronchogenic carcinomas (those arising 
from the lining of the bronchi) accounting for 
80-85% of all lung cancer cases. 
The World Health Organization (WHO) identifies 
multiple forms of NSCLC, but the major forms 
are squamous cell carcinomas, adenocarcinoma 
(ADC) and large-cell carcinoma.
The median survival of patients with untreated 
metastatic NSCLC is only about 4-5 months.
The Non-small Cell Lung Cancer market is 
growing - the Global market is projected to 
increase from $5.1 billion in 2013 to $7.9 billion 
in 2020 at a CAGR of 6.6%. This represents about 
1.1 million cases estimated in the eight largest 
markets.
Endometriosis is a gynaecological medical 
condition in which cells from the lining of the 
uterus (endometrium) appear and flourish 
outside the uterine cavity, most commonly  
on the ovaries. The uterine cavity is lined by 
endometrial cells, which are under the influence 
of female hormones. These endometrial-like  
cells in areas outside the uterus (endometriosis) 
are influenced by hormonal changes and 
respond in a way that is similar to the cells  
found inside the uterus. Symptoms often  
worsen with the menstrual cycle. Endometriosis  
is excessively debilitating, typically seen during 
the reproductive years and represents one of  
the major causes of female infertility. 
It has been predicted that the global endometriosis 
market will reach $1.3 billion by 2017 and 
endometriosis remains a common health 
problem among women, with an estimated  
170 million sufferers globally. This estimate is 
widely considered to be an under estimation  
of the true situation with respect to this condition. 
Lung Cancer Endometriosis
80%
Causative factors of lung cancer  
include smoking, responsible for  
more than 80% of cases.
170 million
Endometriosis remains a common 
health problem among women, with an 
estimated 170 million sufferers globally.
160,000
Approximately 160,000 people in  
the UK die of cancer every year.
2
77%
UK lung cancer patients are  
diagnosed at stage III or IV.
1  
Fiercebiotech, 2015 
2 
http://www.who.int/
mediacentre/factsheets/
fs297/en/
3  
http://www.
pharmaceutical-
technology.com/
features/feature125729/
feature125729-3.html
4 
http://www.macmillan.org.
uk/Documents/AboutUs/
Research/Keystats/
StatisticsFactsheet.pdf 10   Annual Report and Accounts 2015   ValiRx plc
LICENSING COLLABORATIONS
Strategic Report
Imperial Innovations, London
Licensed technology since: 2006 (GeneICE). 
Imperial Innovations Group plc 
(“Innovations”) creates, builds and invests 
in pioneering technology companies and 
licensing opportunities developed from 
outstanding scientific research focusing  
on the ‘Golden Triangle’ , the geographical 
region broadly bounded by London, 
Cambridge and Oxford.
This area has an unrivalled cluster of 
outstanding academic research and 
technology businesses, and is home  
to four of the world’s top 10 universities
1
,  
as well as leading research institutions,  
the cream of the UK’s science and  
technology businesses and many  
of its leading investors.
Innovations supports scientists and 
entrepreneurs in the commercialisation 
of their ideas, through the licensing of 
intellectual property, by leading the 
formation of new companies, by recruiting 
high-calibre management teams and by 
providing investment and encouraging  
co-investment.
University College London Hospital
Out-sourced contractor to run clinical  
trial since: 2015.
University College London Hospitals NHS 
Foundation Trust (UCLH) is one of the most 
complex NHS trusts in the UK, serving a 
large and diverse population. In July 2004, 
UCLH was one of the first NHS trusts to 
achieve Foundation Trust status. It provides 
academically-led acute and specialist 
services, to people from the local area, 
from throughout the United Kingdom and 
overseas. UCLH is committed to delivering 
top-quality patient care, excellent education 
and world class research.
It has a turnover of £882 million and 
contracts with over 70 primary care trust 
commissioning bodies to provide services.  
It sees over 950,000 outpatients and admits 
over 156,000 patients each year.
It works with the Royal Free and University 
College Medical School, London South Bank 
and City universities to offer high-quality 
training and education.
Cancer Research UK
Licensed technology since: 2016 (VAL201).
Cancer Research UK is a cancer research 
and awareness charity in the United 
Kingdom, formed on 4 February 2002 
by the merger of The Cancer Research 
Campaign and the Imperial Cancer 
Research Fund. Its aim is to reduce the 
number of deaths from cancer. As the 
world’s largest independent cancer 
research charity, it conducts research into 
the prevention, diagnosis and treatment  
of the disease. Research activities are 
carried out in institutes, universities 
and hospitals across the UK, both by 
the charity’s own employees and by its 
grant-funded researchers. It also provides 
information about cancer and runs 
campaigns aimed at raising awareness of 
the disease and influencing public policy.
Cancer Research UK’s work is almost 
entirely funded by the public. It raises 
money through donations, legacies, 
community fundraising, events, retail 
and corporate partnerships. Over 40,000 
people are regular volunteers.
On 18 July 2012 it was announced that 
Cancer Research UK was to receive its 
largest ever single donation of £10 million 
from an anonymous donor. The money 
will go towards the £100 million funding 
needed for the Francis Crick Institute in 
London, the largest biomedical research 
building in Europe. 1  
QS World University Rankings 2015/16 11   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015
Collaboration Agreement
Collaboration with Leeds University and its newly appointed  
professor, appointed to investigate new, broader technologies. 
ValiRx participated in a collaborative research 
project with Professor Paul Taylor, Director of 
Student Education and Professor of Chemical 
Education at the School of Chemistry,  
University of Leeds.
Professor Taylor has recently moved to Leeds 
from the University of Warwick, where he 
achieved recognition as the co-inventor  
of ValiSeek’s VAL401 programme.
The collaboration will give ValiRx access to 
Professor Taylor’s new research results, once 
he starts work on the project: ‘A translated 
retrotransposon as a biomarker and a 
therapeutic agent’ , which will seek to develop 
and establish a new gene-based technology 
and technique for developing biomarkers  
and targeted therapeutic agents.
ValiRx will own and be responsible for 
protecting the IP arising out of the collaboration, 
whilst exploitation shall be subject to all arising 
benefits being shared equally between ValiRx 
and the University of Leeds.
The research project will see a PhD student 
develop the project for three and a half years 
under the guidance of Professor Taylor and Dr 
Suzanne Dilly, with Dr Dilly acting as industrial 
supervisor for ValiRx to co-ordinate the 
programme between the Company and  
the academic collaborators.
“Pharmatest has been 
our preferred supplier 
of preclinical proof-of-
concept studies for  
some time now and  
we are very satisfied  
with the high quality  
and scientific expertise 
that they provide.” 
Dr Satu Vainikka
Chief Executive Officer
“I am delighted to be 
working with Suzanne 
again and the team 
at ValiRx and to be 
generating new science, 
safe in the knowledge 
that our industrial 
partner is well placed 
to take that science 
forward into worthwhile 
clinical usage.” 
Professor Paul Taylor
University of Leeds 12   Annual Report and Accounts 2015   ValiRx plc
THERAPEUTICS
Strategic Report
Prostate Cancer 
The Company’s leading anti-cancer therapeutic 
VAL201 is currently in clinical trials for the 
treatment of prostate cancer and potentially 
other indications of hormone induced 
unregulated growth including endometriosis. 
The Phase I/II trial has been initiated and VAL201 
was safe and well tolerated at the doses tested. 
Progressing through the dose escalation and 
expansion stages, the study is then designed 
to investigate further details of these aspects 
as well as efficacy. Particular emphasis will be 
placed on evaluating the pharmacokinetics, 
pharmacodynamics and early assessment of  
anti-tumour activity in response to VAL201,  
using a variety of measurements including 
ValiRx’s biomarkers, with biomarkers being  
key indicators in personal medicine.
VAL201 selectively prevents tumour growth by 
specifically inhibiting the proliferation of tumour 
cells. As a result, tumour growth is suppressed and 
metastasis is significantly reduced. The approach 
is a targeted therapeutic with pre-clinical results 
that indicate that due to the specific nature of 
this treatment, this therapy is likely to be less toxic 
than many other therapeutic options. The VAL201 
VAL201
target is also associated with other cancers and 
there is significant potential for VAL201 to be 
used as a treatment for other hormone-induced 
cancers, such as breast and ovarian and also 
endometriosis. 
Endometriosis
Endometriosis is a gynaecological medical 
condition in which cells from the lining of  
the uterus (endometrium) appear and flourish  
outside the uterine cavity lined by endometrial 
cells, which are under the influence of female 
hormones. These endometrial-like cells in areas 
outside the uterus (endometriosis) are influenced 
by hormonal changes and respond in a way that 
is similar to the cells found inside the uterus and 
symptoms often worsen with the menstrual cycle. 
The treatments chosen will depend on symptoms, 
age, and lifestyle plans. VAL201 has been shown 
though to reduce abnormal endometrial growth, 
whilst leaving other hormone-induced activities 
working normally. ValiRx’s initial in-vitro results 
show a reduction in endometrial lesion size 
directly related to dose and two generations 
of offspring produced by treated animals. This 
strongly suggests that the peptide does not  
affect fertility the same way other treatments do.
“I am thrilled that the VAL201 clinical 
development has now entered the human 
patient phase and I am looking forward 
to receiving information about the 
compound’s performance and behaviour 
in this critical stage of development.”
Dr Satu Vainikka
Chief Executive Officer
Two drug candidates in clinical stage 
development. Others in pre-clinical.
Our portfolio
50%
The prognosis for 
many patients with 
prostate cancer is 
very poor – less 
than 50% survive 
beyond 2 years.
VAL201
1
VAL401 VAL101 (GeneICE, 
VAL101 & TRAC) Strategic Report
Governance
Financial Statements
13   ValiRx plc   Annual Report and Accounts 2015
Lung Cancer and others 
VAL401 is the reformulation of a generic drug 
that has over 20 years of clinical use for treatment 
of a chronic non-oncology disease in an oral 
capsule. The re-formulation allows the drug to 
access previously unexploited anti-cancer activity. 
VAL401 is progressing satisfactorily through its 
remaining preclinical development and towards 
clinical Phase II trials for the treatment of lung 
cancer and other oncology indications. Progress 
into clinical trials will comprise a shorter than 
usual route to Market Authorisation by use 
of prior clinical data gathered on the original 
generic drug. Preclinical efficacy data has been 
collected in both non-small cell lung and prostate 
cancers. Preclinical toxicology has revealed no 
side effects beyond those expected from the 
parent drug, with preclinical pharmacokinetc 
data allowing bridging from VAL401 to the 
historical full clinical data package on the parent. 
Formulation stability tests are currently underway 
to complete the CMC package.
VAL401
“I am delighted that VAL401 
has progressed according 
to schedule since being 
in-licensed to the ValiRx 
group last year. We look 
forward to hearing reports 
from ValiSeek of further 
advancement over the 
coming year.” 
Dr Satu Vainikka
Chief Executive Officer
20 years
During 20 years of prior clinical use, the active 
drug has been safely administered long term 
(chronic use of over 2 year’s duration) with  
good compliance.
Indications
Other possible indications include  
prostate and pancreatic cancer. 14   Annual Report and Accounts 2015   ValiRx plc
THERAPEUTICS continued
Strategic Report
Biomarker development programme,  
to support clinical and pre-clinical 
development, is continuing to produce  
results with the recent acquisition of 
complimentary TRAC technology. The 
programme is supported extensively  
by Finnish government regional funding.
The use of biomarkers with oncology 
therapeutics is one of the fastest growing 
areas of cancer research, as not only can the 
biomarkers identify patients who are more 
likely to respond to a particular drug therapy, 
but they can also indicate tumour progression.
ValiRx’s biomarker subsidiary, ValiFinn in 
Finland provides the Group with exposure  
to the Biomarker market, a key and 
increasingly exciting field within its industry, 
but also to a revenue stream, derived from 
the provision of contract services to the 
pharmaceutical industry. 
ValiFinn has built on its specialist biomarker 
expertise to develop its own companion 
diagnostic biomarkers to complement 
ValiRx’s therapeutics, its existing intellectual 
property and its companion diagnostic 
activities, as well as marketing that expertise 
for the development programmes of other 
companies. Its services for consumers  
include biomarker measurements for  
health monitoring.
ValiFinn conducts the management of certain 
aspects of VAL201 late preclinical work and will 
assist in the regulatory work pertaining to the 
clinical trials and will manage certain aspects 
of the clinical work regarding hormone 
induced refractory cancer.
ValiRx’s proprietary novel NAV3 Cancer 
Screening Test enables the detection of  
cancer cells in tissue samples, whether they  
are primary tumours, metastases or pre-
malignant cell, at a stage when tumour 
development is only about to start. The 
 test is based on the detection of specific 
changes in the NAV3 gene and the system  
of tests can be applied to a range of cancers.
Transcript Analysis with the Aid of Affinity 
Capture’ or TRAC technology enables the 
efficient screening of a large number of drug 
candidates for a wide range of genetic safety 
and efficacy markers. The technology platform 
already has an established customer base  
and it has been generating revenue since 
2012. Going forward, ValiRx will look to 
leverage upon TRAC’s market presence  
and grow the sales of this diagnostic business. 
The Company believes that together with 
clinical validation, revenues from TRAC will 
grow, which will support both the biomarker 
and therapeutic development businesses. 
ValiFinn, which is itself already generating 
revenues, is well placed to further develop  
as a service/licensing business.
“The use of biomarkers with oncology 
therapeutics is one of the fastest growing 
areas of cancer research, as not only can 
the biomarkers identify patients who are 
more likely to respond to a particular 
drug therapy, but they can also indicate 
tumour progression.” 
Dr George Morris
Chief Operating Officer
NAV3 (BioMarkers and Diagnostics) 15   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015
$7-9bn
The global prostate cancer  
market looks set to expand  
to $7-9 billion by 2020.
2
25% 
Prostate cancer population  
is predicted to expand by  
25% from 2010 to 2020.
2
+6.3%
By 2016, the global cancer 
biomarkers market is expected to 
have grown by 6.3% to $6.3 billion.
1
GeneICE
GeneICE “rebellious gene” technology 
continues to show good progress in 
the pre-clinical phase – the programme 
currently benefits from a second Eurostars 
grant for up to €1.6 million.
Rebellious genes are genes that are 
overexpressed or are erroneously 
expressed when they should not be, 
e.g. in cancers, inflammatory conditions, 
Alzheimer’s and autoimmune diseases. 
ValiRx’s proprietary GeneICE technology 
enables the selective silencing of specific 
genes by targeted histone deacetylation 
leading to chromatin condensation. 
This prevents access and silences gene 
expression. In nature histone deacetylation 
of a particular gene is brought about 
by recruitment of a histone deacetylase 
complex (HDAC) to the gene. GeneICE 
constructs mimic this natural mechanism 
by delivery to the nucleus of a dual-module 
construct comprising: the binding of 
GeneICE construct to its target gene leads 
to deacetylation of the histones associated 
with the gene, localised chromatin 
condensation and gene silencing.
€1.6m
GeneICE has attracted a  
€1.6 million second Eurostars  
grant to fund its development. 
$3.6bn 
The global cancer biomarkers 
market for 2007 was estimated 
to be $3.6 billion.
1
 
VAL101
VAL101 is a novel therapeutic based  
on the Company’s proprietary  
GeneICE (Gene Inactivation by chromatin 
engineering) platform. It acts to target and 
switch “OFF” the gene that expresses Bcl-2,  
a protein that is implicated in about half 
of all carcinomas. Pre-clinical studies have 
established VAL101’s efficacy in prostate, 
ovarian and pancreatic cancers and it  
may also have anti-tumour activity against 
orphan oncologic indications. ValiRx’s 
GeneICE technology enables the selective 
silencing or the shutting down of particular 
rebellious genes, thereby halting and 
reversing tumour growth.
VAL101 (GeneICE, VAL101 & TRAC)
1  
BCC Research and 
researchandmarkets 
2010/2011
2  
GlobalData 2012 16   Annual Report and Accounts 2015   ValiRx plc
hormones. These endometrial-like cells in areas 
outside the uterus (endometriosis) are influenced 
by hormonal changes and respond in a way that 
is similar to the cells found inside the uterus and 
symptoms often worsen with the menstrual 
cycle. The treatments chosen will depend on 
symptoms, age, and lifestyle plans. VAL201 has 
been shown to reduce abnormal endometrial 
growth, whilst leaving other hormone-induced 
activities working normally. ValiRx’s initial in 
vitro results show a reduction in endometrial 
lesion size directly related to dose and two 
generations of offspring produced by treated 
animals. This strongly suggests that the peptide 
does not affect fertility the same way most other 
treatments do.
VAL401
The Company’s Clinical Efficacy trials of the novel 
cancer treatment drug, VAL401, for the treatment 
of lung cancer and other oncology indications, 
is in the late to final stages of preparation. The 
trial, namely (VAL401-001: “A Phase II study to 
assess the efficacy, safety and tolerability of 
VAL401 in the treatment of patients with locally 
CHIEF EXECUTIVE’S REPORT
In what has been a pivotal period of momentum 
for the Group, ValiRx’s lead compound VAL201, 
has performed exceptionally in clinical trials, 
demonstrating safety, tolerability and early signs 
of potential efficacy against prostate cancer. Our 
other re-profiled and reformulated therapeutic 
drug, VAL401, has been prepared and is poised to 
enter the clinic and our diagnostic technologies 
are conducting various pilot studies in order to 
grow their revenue streams.
VAL201
The Phase l/ll Clinical Trial of VAL201 and its 
application in subjects with hormone resistant 
prostate cancer has confirmed that the 
compound is well tolerated up to a putative 
therapeutic dose and that it has shown a high 
degree of safety, with no drug related significant 
adverse events being reported. Indeed we were 
delighted that the readout from the first part of 
the trial – from first in human dosing through to  
a therapeutically meaningful dose – showed such 
strong safety and tolerability in all trial subjects. 
Other measurements taken were completely 
consistent and comparable to the results seen  
in the pre-clinical studies, both in vivo and in vitro, 
which completed prior to the early Human phase 
of development in which efficacy was shown.
VAL201 selectively prevents tumour growth by 
specifically inhibiting the proliferation of tumour 
cells. As a result, tumour growth is suppressed and 
metastasis is significantly reduced. The approach 
is a targeted therapeutic with pre-clinical results 
that indicate that due to the specific nature of the 
treatment, this therapy was likely to be less toxic 
than many other therapeutic options, a result 
borne out by the early clinical data. The VAL201 
target is also associated with other cancers and 
there is significant potential for VAL201 to be 
used as a treatment for other hormone-induced 
cancers, such as breast and ovarian and also 
endometriosis.
Additional Clinical Trial Centres
Our desire to open additional Clinical Trial 
Centres has been stated in previous updates. 
These centres will be integrated into the study 
to assist with the dose expansion stage of the 
trial, in which strengthening of the dosing, safety 
and tolerability data will continue while further 
aspects of VAL201 anti-tumour activity are 
investigated. The additional capacity this trial-
centre expansion represents will help ensure trial 
completion according to the expected timetable. 
Currently, further cohorts of subjects are being 
recruited as the dose elevation phase completes.
Endometriosis
The VAL201 clinical trial protocol also permits 
investigation of other solid hormone resistant 
tumour types. In the light of the excellent 
results shown by the compound with respect 
to tolerability and safety and with promising 
pre-clinical evidence of the compound’s efficacy 
with respect to the treatment of the non-
cancerous condition of endometriosis, we have 
started the design of the protocol to test VAL201 
for its clinical potential in the treatment of the 
debilitating female condition, Endometriosis.  
Our preclinical results are good and encouraging 
and we anticipate this to be an important 
development of the compound’s therapeutic use.
Endometriosis is a gynaecological medical 
condition in which cells from the lining of the 
uterus (endometrium) appear and flourish 
outside the uterine cavity (lined by endometrial 
cells), which are under the influence of female 
VAL401
The Company’s VAL401 trial has been 
registered with the European Union 
Drug Regulating Authorities Clinical 
Trials Database (EudraCT). Work is now 
continuing to advance the regulatory 
approval process, with a primary trial site 
and Principal Investigator successfully 
identified and engaged.
Strategic Report
“Following on from 
the Chairman’s 
comprehensive  
review I will comment  
on the events and 
activities that I find the  
most significant and point  
the way to the future  
of the Company.”
Dr Satu Vainikka
Founding Director & Chief Executive Officer The Company is pleased that the readout from  
the first part of the trial – from first in human 
dosing through to a therapeutically meaningful  
dose – has shown such strong safety and 
tolerability in all trial subjects.” 
Following on from the Company’s update on 19 November 2015 regarding its Phase l/ll 
Clinical Trial of VAL201 and its application to subjects with hormone resistant prostate cancer, 
ValiRx confirms that the compound is well tolerated up to a putative therapeutic dose and  
that it has shown a high degree of safety, with no drug related significant adverse events  
being reported. The Company is pleased that the readout from the first part of the trial – 
from first in human dosing through to a therapeutically meaningful dose – has shown such 
strong safety and tolerability in all trial subjects. ValiRx is also happy to advise that other 
measurements taken are completely consistent and comparable to the results seen in the  
pre-clinical studies, both in vivo and in vitro, that completed prior to this early Human phase  
of development in which efficacy was shown. The trial also permits investigation of other  
solid hormone resistant tumour types.
VAL201 Passes Safety Test  
with Flying Colours
View more on our website www.valirx.com/news
“
17   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015
advanced or metastatic Non-Small Cell Lung 
Cancer (NSCLC) after failure of at least one prior 
chemotherapeutic regimen”) has been registered 
with the European Union Drug Regulating 
Authorities Clinical Trials Database (EudraCT).
VAL401 is the reformulation of a generic drug 
that has over 20 years of clinical use for treatment 
of chronic non-oncology conditions. The re-
formulation allows the drug to access previously 
unexploited anti-cancer activity. VAL401 is 
progressing satisfactorily through its remaining 
preclinical development and towards clinical 
Phase II trials for the treatment of lung cancer and 
other oncology indications. Progress into clinical 
trials will comprise a shorter than usual route to 
Market Authorisation by use of prior clinical data 
gathered on the original generic drug. Preclinical 
efficacy data has been collected in both non-
small cell lung, prostate and pancreatic cancers. 
Preclinical toxicology has revealed no side effects 
beyond those expected from the parent drug, 
with preclinical pharmacokinetic data allowing 
bridging from VAL401 to the historical full clinical 
data package on the parent drug. Formulation 
stability tests are currently underway to complete 
the CMC package.
TRAC
In February 2015, ValiRx acquired the Finnish gene 
expression and biomarker technology ‘Transcript 
Analysis with the Aid of Affinity Capture’ (“TRAC”) 
for use by its wholly owned biomarker unit, ValiRx 
Finland Oy (“ValiFinn”), based in Oulu, Finland. 
This TRAC technology has already strengthened 
ValiFinn’s biomarker development and service 
offering, by providing a high-content gene 
expression analysis platform, which will support 
ValiRx’s development of oncology biomarkers 
and will support the Group’s development of 
its oncology drug pipeline. TRAC is actively 
marketing itself to third parties growing its 
revenue stream.
“Now that we are  
actually in the midst  
of the Trial at UCLH  
and the initial results  
are very encouraging  
I am looking forward  
with optimism for  
VAL201 and its  
future.”
Furthermore regarding ValiRx’s proprietary 
‘gene-silencing’ GeneICE technology (or “Gene 
inactivation by chromatin engineering”), the 
Board believes there are further synergies and 
advantages to be gained through GeneICE’s 
access to and pairing with TRAC’s gene 
expression analysis technology. Since GeneICE 
down regulates “rebellious Genes” , TRAC can be 
used as a fast method to test GeneICE expression 
biomarkers and is well placed to select future 
GeneICE therapeutic targets.
GeneICE
Activities are continuing within the GeneICE 
Eurostars pre-clinical programme.
GeneICE “rebellious gene” technology continues 
to show good progress in the pre-clinical phase - 
the programme currently benefits from a second 
Eurostars grant for up to €1.6 million.
Rebellious genes are genes that are 
overexpressed when they should not be  
or are erroneously expressed, e.g. in cancers, 
inflammatory conditions, Alzheimer’s and 
autoimmune diseases. ValiRx’s proprietary 
GeneICE technology enables the selective 
silencing of specific genes by targeted histone 
deacetylation leading to chromatin condensation. 
This prevents access and silences gene 
expression. In nature histone deacetylation of a 
particular gene is brought about by recruitment 
of a histone deacetylase complex (HDAC) to 
the gene. GeneICE constructs mimic this natural 
mechanism by delivery to the nucleus of a  
dual-module construct comprising: the binding 
of GeneICE construct to its target gene leads  
to deacetylation of the histones associated with 
 the gene, localised chromatin condensation  
and gene silencing.
Outlook
In conclusion, the period under review has been 
pleasingly satisfactory and our teams around  
the VAL201 and VAL401 compounds have started 
talking to parties for late stage clinical studies  
and for potential partnerships and collaboration 
with pharmaceutical partners.
ValiRx continues to look to expand its Intellectual 
Property (“IP”) as its development programmes 
go forward and it remains open to technology 
acquisition opportunities and ways in which it 
can both deliver and grow shareholder value.
Dr Satu Vainikka
Founding Director & Chief Executive Officer
19 May 2016 RISKS AND UNCERTAINTIES
Risk  Description
Risk Status Key
The success of the Group’s programmes depends upon the quality of the 
design and the implementation of each programme. The Group utilises a 
range of external scientific, regulatory and clinical experts to help guide its 
development programmes. The progress of the development programmes 
therefore represents the best indicator of the Group’s performance. 
Successful commercialisation of the Group’s products is likely to depend 
on successful progress through clinical studies, licensing and or partnering 
and registration. Development of product candidates involves a lengthy and 
complex process and products may not meet the necessary requirements  
in terms of toxicity, efficacy or safety, or the relevant regulators may not 
agree with the conclusions of the Group’s research and may require  
further testing or withhold approval altogether.
The Group’s success depends on acceptance of the Group’s products by the 
markets, including pharmaceutical and biotechnology companies users and 
third party payers, and consequently the Group’s progress may be adversely 
affected if it is unable to achieve market acceptance of its products. Factors 
which may affect the rate and level of market acceptance of any of the 
Group’s products include the existence or entry on to the market of superior 
competing products or therapies and the price of the Group’s products, 
compared to competing products and overall cost effectiveness of the product.
The Group has a history of operating losses which are anticipated to 
continue until the Group is able to generate sufficient revenues from its 
development programmes. However, the Group may need to seek further 
capital through equity or debt financings in the future and if this is not 
successful, the financial condition of the Group may be adversely affected.
Successful commercialisation of the Group’s products is likely to depend  
on successful progress through clinical studies and registration. Development 
of product candidates involves a lengthy and complex process and 
products may not meet the necessary requirements in terms of toxicity, 
efficacy or safety, or the relevant regulators may not agree with the 
conclusions of the Group’s research and may require further testing  
or withhold approval altogether.
The Group’s success depends on acceptance of the Group’s products by 
the markets, including various buyers, users and third party payers, and 
consequently the Group’s progress may be adversely affected if it is unable 
to achieve market acceptance of its products. Factors which may affect the 
rate and level of market acceptance of any of the Group’s products include 
the existence or entry on to the market of superior competing products or 
therapies and the price of the Group’s products compared to competing 
products and overall cost effectiveness of the product.
The Group’s success depends, in part, on its ability to obtain and maintain 
protection for its intellectual and proprietary information, so that it can stop 
others from making, using or selling its inventions or proprietary rights. The 
Group’s patent applications may not be granted and its existing patent 
rights may be successfully challenged and revoked.
The drug development process is inherently risky and is conducted over 
several years and consequently is costly. Many drug candidates fail in 
development due to the clinical and regulatory risks, and even in those 
circumstances where drugs are sold, licensed or partnered prior to or 
subsequent to potential or actual approval, sales levels can be disappointing 
due to competition, healthcare regulation and/or intellectual property 
challenges. As a result the returns achieved may be insufficient to cover  
the costs incurred.
The Board is committed to minimising the Group’s impact on the 
environment and ensuring compliance with environmental legislation.  
The Board considers that its activities have a low environmental impact.  
The Group strives to ensure that all emissions including the disposal of 
gaseous, liquid and solid waste products are controlled in accordance  
with applicable legislation and regulations. Disposal of hazardous waste  
is handled by specialist agencies.
Industry risk
Competition risk
Financial risk:  
Cash flow
Clinical and  
regulatory risk
Counterparty risk
Intellectual  
property risk
Return on 
investment
Environmental 
matters
The Group manages its clinical and regulatory risk by 
working closely with its expert regulatory advisors and,  
where appropriate, seeking advice from regulatory 
authorities on the design of key development plans  
for its pre-clinical and clinical programmes.
The Group works closely with its legal and other advisors  
and obtains, where necessary opinions on competition  
risk relevant to the Group’s programmes and activities.
As at 31 December 2015, the Group had cash resources  
of £0.23 million, which the Group considers sufficient to 
finance its operational activities until at least Q1 2016 
and has since raised further funding of £1.02 million. 
The Group manages its clinical and regulatory risk by 
working closely with its expert regulatory advisors and,  
where appropriate, seeking advice from bodies on  
clinical and regulatory risk relevant to the Group’s 
programmes and activities.
The Group works closely with its legal advisors and 
obtains, where necessary opinions on the Counterparty 
risk relevant to the Group’s programmes and activities.
The Group invests in maintaining and protecting this 
intellectual property to reduce risks over the enforceability 
and validity of the Group’s patents. The Group works 
closely with its legal advisors and obtains where necessary 
opinions on the intellectual property landscape relevant 
to the Group’s programmes and activities.
The Group looks to mitigate the development and 
commercial risk by partnering drug candidates for 
late-stage development and commercialisation. 
By partnering in this way, part of the risk profile is 
reduced and the cost to the Company of programme 
development is minimised.
The Group recognises its responsibility towards the 
environment and in the way it conducts its business 
and it works closely with all its expert scientific advisors 
to ensure its compliance with environmental legislation 
and to ensure that all emissions including the disposal  
of gaseous, liquid and solid waste products are 
controlled in accordance with applicable legislation  
and regulations.
Strategic Report
Mitigation Change
18   Annual Report and Accounts 2015   ValiRx plc
Risk increased Risk unchanged Risk decreased
1
2
3
4
5
6
7
8 Corporate Social Responsibility represents 
our commitment to economic and social 
development that will have a positive impact  
on the health and well-being of our team 
members, local and global communities,  
and stakeholders at large while advancing  
the quality of our company through  
engagement in the world around us.
At ValiRx, Our Board of Directors recognise  
that good corporate governance is essential  
to running a successful company, and they  
are committed to ensuring that high standards 
are maintained to solidly underpin the 
management of our business affairs.
Corporate Social 
Responsibility
Corporate 
Governance
• Our Corporate Social Responsibility Vision
 The overriding goals and objective  
of CSR encapsulate our higher mission. 
• Core Values
 Our values of respect, trust, passion, innovation 
and continuous improvement all call for and  
are enhanced by a focus on the non-financial 
aspects of our business. 
• What is it about
 Our vision is to create, develop and deliver 
innovative healthcare solutions and services  
that help reduce complexity, drive efficiency  
and improve overall patient wellbeing. 
• What are we doing about it
 We continually refine our vision and people 
strategy for the future of our business and  
the markets we serve. Reporting is an essential 
tool for tracking and communicating progress 
against our commitments. It will help us advance 
our vision and demonstrate our efforts to 
innovate in the industry.
ValiRx recognise the obligation to behave as 
a responsible corporate citizen and believe 
that by doing so we will minimise business 
risk and enhance our reputation.
The Board recognises the potential benefits of 
corporate social responsibility (“CSR”) for the 
competitiveness of ValiRx and encourages a 
culture of continuous improvement in CSR-
related issues. We have set specific policies  
that cover key aspects of CSR and strive to 
operate at the highest level of integrity.
“Delivering healthcare 
solutions that reduce 
complexity, drive 
efficiency and improve 
patient wellbeing.”
19   
Strategic Report
Governance
Financial Statements
ValiRx plc   Annual Report and Accounts 2015 20   Annual Report and Accounts 2015   ValiRx plc
Governance
BOARD OF DIRECTORS
Oliver de Giorgio-Miller
Non-executive Chairman
Appointment: Oliver joined the Board  
of ValiRx plc in May 2011.
Experience and Accreditation: Oliver has 
a wealth of experience in the management 
and commercial advancement of life science 
companies. He has worked for over 30 
years with several global pharmaceutical 
and medical device companies including 
Schering AG, Hoffman la Roche, Intavent-
Orthofix and Photo Therapeutics, a Cancer 
Research UK company, and he has extensive 
experience advising a number of other early 
stage biopharmaceutical and medical device 
companies.
Since 2002 Oliver has worked as a life 
sciences analyst in the City, working alongside 
corporate finance, investor relations and 
sales teams on a wide range of transactions 
including IPOs, secondary issues and M&As.
External Appointments: He is a director  
and investment manager of an offshore  
fund, Sarum Investment (SICAV) plc,  
which is exclusively focused on the  
oncology sector. 
Dr Satu Vainikka
Founding Director & Chief Executive Officer
Appointment: Satu joined the Board  
in September 2006.
Experience and Accreditation: Satu has many 
years’ experience of the biotechnology industry, 
including extensive first hand experience 
of equity financing, business management 
and developing life science technology into 
commercial enterprises. Prior to her current  
role as CEO of ValiRx, she was a founder, director 
and CEO of Cronos Therapeutics Limited.
In her past roles, Dr Vainikka has developed 
and exited successful business models, 
negotiated corporate and academic 
transactions and raised funding for
a number of companies.
Dr Satu Vainikka has gained the following 
qualifications and awards:
•  MBA at Imperial College Business
 School 2000;
• PhD in signal transduction in oncology,
 University of Helsinki 1996; and
• Prestigious “embo” fellowship for
 Postdoctoral research at Imperial
 Cancer Research (now CRC).
Dr George Morris
Founding Director & Chief Operating Officer
Appointment: George joined the Board  
in September 2006.
Experience and Accreditation: George has 
over 25 years’ experience in biological and 
medical research and financial services. In the 
past he has worked for Guy’s Hospital Medical 
School Department of Medicine, King’s College 
and University College London. As a research 
scientist, he is an author of numerous books 
and articles on refereed papers, approximately 
70 abstracts, short reports and posters, 
and an inventor of multiple patents.
George was a founding member of the 
expert advisory panel, the “Biotechnology 
and Finance Forum” , set up jointly between 
the European Commission and the European 
Association of Securities Dealers. George 
is involved in a number of conferences and 
workshops with the EU research and 
agricultural directorates and is an “expert” 
to the Commission and has been invited 
into several policy discussion groups.
George has worked with a variety of 
commercial, governmental organisations 
and financial institutions in the US, Europe 
and Australia and many consultancy projects 
covering various biotechnology and financial 
activities. 
External Appointments: He is regularly asked 
to chair or participate in conferences in his 
areas of experience, including acting as a
“Venture Academy” mentor.
Our experienced Board of Directors 
comprises six dedicated members who  
are all well respected within their field. Strategic Report
Governance
Financial Statements
21   ValiRx plc   Annual Report and Accounts 2015
To view our Scientific Advisory Board, visit  
www.valirx.com/about-us/scientific-advisory-board
Gerry Desler
Founding Director & Chief Financial Officer
Appointment: Gerry joined the Board  
in September 2006.
Experience and Accreditation: Gerry is a 
chartered accountant, who qualified in 1968 
with a City firm, before becoming a partner  
in 1970. Between 1985 to 1990 he was the 
senior partner. During his time in the City,  
he has specialised in consultancy work, much 
of it involving funding and venture capital.
He was involved in one of the first joint
ventures in what was then the People’s
Republic of China in 1980. 
External Appointments: Gerry is also the 
finance director of Prospex Oil & Gas Plc,  
an AIM listed company and is on the board  
of a number of private companies.
Directors
Oliver de Giorgio-Miller
Dr Satu Vainikka
Dr George Morris
Gerry Desler
Kevin Alexander
Seppo Mäkinen
Secretary
Kevin Alexander
Company number
03916791
Registered office
24 Greville Street
London
EC1N 8SS
Auditors
Adler Shine LLP
Chartered Accountants  
and Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF
Bankers
Royal Bank of Scotland Plc
St Ann Street
Manchester
M50 2SS
Solicitors
Pinsent Masons LLP
30 Crown Place
Earl Street
London 
EC2A 4ES
Company Information
Kevin Alexander
Non-executive Director
Appointment: Kevin joined the Board in 
September 2006. 
Experience and Accreditation: Kevin is a 
qualified solicitor in England and an attorney 
in New York and he was a partner at major law 
firms in both London and the United States 
for over 25 years. Since leaving the law, he 
has been involved in forming and managing 
various businesses, both private and public. He 
has an MA in law from Cambridge University.
Seppo Mäkinen
Non-executive Director
Appointment: Seppo joined the Board  
in October 2013.
Experience and Accreditation: Seppo 
Mäkinen has more than 25 years executive 
experience at board level and of venture 
capital management in life science companies. 
His special expertise is on biotech/medtech/
diagnostics. His career includes ten years as 
a Director in Life Sciences at Sitra (Finnish 
Government Fund), followed by thirteen years 
as co-founder and Managing Partner in Bio 
Fund Management Oy. His experience also 
includes five years as President of BioFund 
A/S, Copenhagen. With €200 million under 
management, BioFund was one of the biggest 
European VC funds investing into life sciences. 
He received his M.Sc. Degree in physical 
chemistry from University of Jyväskylä in 1979.
External Appointments: Seppo Mäkinen is 
currently Board Member in five life science/
healthcare companies and advisor to Merieux 
Développement Fund.  22   Annual Report and Accounts 2015   ValiRx plc
DIRECTORS’ REPORT
For the year ended 31 December 2015
The Directors present their report and financial statements for the year ended 31 December 2015.
Results and dividends
The results for the year are set out on page 25.
The Directors do not recommend payment of an ordinary dividend.
Financial risk management objectives and policies
Note 25 to the financial statements gives details of the Group’s objectives and policies for risk management of financial instruments.
Research and development
The Group will continue its policy of investment in research and development. In accordance with International Financial Reporting Standards (IFRS), during 
the year the Group expensed to the income statement £1,543,441 (2014: £1,772,338) on research and development. Further details on the Group’s research 
and development are included in the Chief Executive’s Report on page 16.
Directors
The following Directors have held office since 1 January 2015:
O de Giorgio-Miller
Dr S Vainikka
Dr G Morris
G Desler
K Alexander
S Mäkinen
The market value of the Company’s shares at 31 December 2015 was 22.75p and the high and low share prices during the period were 64.00p and  
16.00p respectively.
Significant shareholders
As at 13 March 2016, so far as the Directors are aware, there are no parties who are directly or indirectly interested in 3% or more of the nominal value  
of the Company’s share capital.
Directors’ insurance
The Directors and officers of the Company are insured against any claims against them for any wrongful act in their capacity as a Director,  
officer or employee of the Group, subject to the terms and conditions of the policy.
Auditors
In accordance with Section 489 of the Companies Act 2006, a resolution proposing that Adler Shine LLP be reappointed as auditors of the Company  
will be put to the Annual General Meeting. 
Directors’ responsibilities
The Directors are responsible for preparing the Strategic Report, the Directors’ Report and the financial statements in accordance with applicable law  
and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have, as required by the AIM Rules  
of the London Stock Exchange, elected to prepare the group financial statements in accordance with International Financial Reporting Standards as adopted 
by the European Union and have elected to prepare the parent company financial statements in accordance with United Kingdom Generally Accepted 
Accounting Practice (United Kingdom accounting standards and applicable law) including FRS 102 “the Financial Reporting Standard applicable in the UK 
and Republic of Ireland” . Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the Company and the group and of the profit or loss of the Company and the group for that period. Strategic Report
Governance
Financial Statements
23   ValiRx plc   Annual Report and Accounts 2015
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and prudent;
• state whether the group financial statements have been prepared in accordance with IFRS as adopted by the European Union;
• state, with regard to the parent company financial statements, whether applicable UK Accounting Standards have been followed, subject to any material 
departures disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company and the group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose 
with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the 
Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation  
in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in annual reports may differ 
from legislation in other jurisdictions.
Statement of disclosure to auditors
So far as each person serving as a Director of the Company at the date this report is approved is aware: 
(a)  there is no relevant audit information of which the Company’s auditors are unaware, and
(b)  each Director hereby confirms that he or she has taken all the steps that he or she ought to have taken as Director in order to make himself or herself 
aware of any relevant audit information and to establish that the Company’s auditors are aware of that information.
This report was approved by the Board of Directors and signed on its behalf by:
Dr Satu Vainikka
Chief Executive Officer
19 May 2016 24   Annual Report and Accounts 2015   ValiRx plc
We have audited the Group and Parent Company financial statements (the “financial statements”) of ValiRx Plc for the year ended 31 December 2015  
which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position and Parent Company Statement  
of Financial Position, the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity and the related notes.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and International Financial 
Reporting Standards (‘IFRSs’) as adopted by the European Union. The financial reporting framework that has been applied in the preparation of the Parent 
Company financial statements is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) 
including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” .
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work  
has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no 
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 22, the Directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements  
in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing 
Practices Board’s (‘APB’) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the 
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies 
are appropriate to the Group’s and Parent Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of 
significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all the financial and 
non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information  
that is materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become 
aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and the Parent Company’s affairs as at 31 December 2015 and of the Group’s 
loss for the year then ended;
• the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
• the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice –  
FRS 102; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors’ Report for the financial year for which the financial statements are prepared  
is consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches  
not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Darsh Shah (Senior Statutory Auditor)
for and on behalf of Adler Shine LLP
Aston House Chartered Accountants and Statutory Auditor
Cornwall Avenue
London
N3 1LF 
INDEPENDENT AUDITORS’ REPORT
to the members of ValiRx plc Strategic Report
Governance
Financial Statements
25   ValiRx plc   Annual Report and Accounts 2015
CONSOLIDATED STATEMENT  
OF COMPREHENSIVE INCOME
for the year ended 31 December 2015
      2015 2014
     Notes £ £
Revenue   3 82,603 87,558
Cost of sales    (77,875) (61,025)
Gross profit    4,728 26,533
Research and development    (1,543,441) (1,772,338)
Administrative expenses    (1,694,089) (1,603,128)
Other operating income   4 203,391 210,802
Operating loss   4 (3,029,411) (3,138,131)
Fair value profit/(loss) on derivative financial assets   14 463,023 (72,202)
Finance income   5 1,074 8,023
Loss on disposal of financial assets    – (437,493)
Finance costs   6 (1,793) (1,532)
Loss on ordinary activities before taxation    (2,567,107) (3,641,335)
Income tax expense   7 391,202 396,864
Loss on ordinary activities after taxation    (2,175,905) (3,244,471)
Non-controlling interest    57,570 84,440
Loss for the year and total comprehensive income    (2,118,335) (3,160,031)
Loss per share – basic and diluted   8
From continuing operations    (6.66)p (13.48)p
There are no recognised gains and losses other than those passing through the Consolidated Statement of Comprehensive Income.
The notes on pages 30 to 44 form part of these statutory accounts.
Financial Statements 26   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2015
     Reverse Share Non  
  Share Share Merger acquisition option controlling Retained 
  capital premium reserve reserve reserve interests earnings Total
 Notes  £ £ £ £ £ £ £ £
Balance at 1 January 2014  6,359,357 5,925,231 637,500 602,413 73,852 – (10,367,941) 3,230,412
Changes in equity for 2014
Loss for the year  – – – – – (84,440) (3,160,031) (3,244,471)
On acquisition of subsidiary  – – – – – 110,814 – 110,814
Issue of shares  922,449 2,069,701 – – – – – 2,992,150
Costs in respect of shares issued  – (390,200) – – – – – (390,200) 
Movement in the year  – – – – 89,324 – – 89,324
Transfer between share option reserve  
and retained earnings  – – – – (9,032) – 9,032 –
Balance at 31 December 2014  7,281,806 7,604,732 637,500 602,413 154,144 26,374 (13,518,940) 2,788,029
Changes in equity in 2015
Loss for the year  – – – – – (57,570) (2,118,335) (2,175,905)
On acquisition of subsidiary  – – – – – 110,265 – 110,265
Issue of shares 18 838,930 3,291,070 – – – – – 4,130,000
Costs in respect of shares issued  – (368,940) – – – – – (368,940)
Movement in the year  – – – – 49,375 – – 49,375
Balance at 31 December 2015  8,120,736 10,526,862 637,500 602,413 203,519 79,069 (15,637,275) 4,532,824
Merger reserve
The merger reserve of £637,500 exists as a result of the acquisition of ValiRx Bioinnovation Limited. The merger reserve represents the difference between  
the nominal value of the share capital issued by the Company and the fair value of ValiRx Bioinnovation Limited at 3 October 2006, the date of acquisition.
Reverse acquisition reserve
The reverse acquisition reserve exists as a result of the method of accounting for the acquisition of ValiRx Bioinnovation Limited and ValiPharma Limited. Strategic Report
Governance
Financial Statements
27   ValiRx plc   Annual Report and Accounts 2015
CONSOLIDATED STATEMENT  
OF FINANCIAL POSITION
as at 31 December 2015
     2015  2014
   Notes £ £ £ £
ASSETS
Non-current assets
Intangible assets 9  2,673,363  2,380,021 
Property, plant and equipment 10  22,177  1,507
   2,695,540  2,381,528
Current assets   
Inventories 12 43,950  11,150 
Trade and other receivables 13 686,394  777,602 
Derivative financial assets 14 1,463,023  – 
Cash and cash equivalents  232,465  452,824 
  2,425,832  1,241,576
LIABILITIES  
Current liabilities
Trade and other payables 15 (588,548)  (835,075) 
Net current assets   1,837,284  406,501
Net assets   4,532,824  2,788,029
SHAREHOLDERS’ EQUITY
Called up share capital 18  8,120,736  7,281,806
Share premium   10,526,862  7,604,732
Merger reserve   637,500  637,500
Reverse acquisition reserve   602,413  602,413
Share option reserve   203,519  154,144
Profit and loss account   (15,637,275)  (13,518,940)
Total shareholders’ equity   4,453,755  2,761,655
Non-controlling interests   79,069  26,374
Total equity   4,532,824  2,788,029
The notes on pages 30 to 44 form part of these statutory accounts.
Approved by the Board and authorised for issue on 19 May 2016.
Dr Satu Vainikka
Chief Executive Officer
Company Registration No. 03916791 28   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2015
     2015  2014
    £ £ £ £
Net cash outflow from operating activities   (2,977,116)  (3,316,712)
Returns on investments and servicing of finance    
Interest received  1,074  8,023 
Interest paid  (1,793)  (1,532) 
Net cash (outflow)/inflow for returns on investments and servicing of finance   (719)  6,491
Taxation   387,747  309,541
Capital expenditure and financial investment    
Payments to acquire intangible assets  (389,926)  (273,846) 
Payments to acquire tangible assets  (31,670)  (1,408) 
Receipts from sales of investments  –  330,830 
Net cash (outflow)/inflow for capital expenditure   (421,596)  55,576
Acquisitions and disposals    
Non-controlling interest  110,265  63 
Net cash inflow for acquisitions and disposals   110,265  63
Financing
Issue of Ordinary Share capital  3,050,000  2,900,000 
Cost of share issue  (368,940)  (390,200) 
Cost of derivative financial asset  –  (1,500,000) 
Proceeds received from issue of derivative financial asset  –  1,427,798 
Net cash inflow from financing   2,681,060  2,437,598
Decrease in cash in the year   (220,359)  (507,443)
Cash and cash equivalents at beginning of period   452,824  960,267
Cash and cash equivalents at end of period   232,465  452,824
  Strategic Report
Governance
Financial Statements
29   ValiRx plc   Annual Report and Accounts 2015
NO TES T O THE CONSOLIDA TED  
CASH FLOW STATEMENT
for the year ended 31 December 2015
1 Reconciliation of operating loss to net cash outflow from operating activities
      2015 2014
      £ £
Operating loss    (3,029,411) (3,138,131)
Depreciation of tangible assets    10,906 517
Amortisation of intangible assets    91,831 90,697
Increase in stocks    (32,800) (7,072)
Decrease/(increase) in debtors    94,663 (199,884)
Decrease in creditors within one year    (166,527) (158,873)
Other non-cash movements    4,847 6,710
Share option charge    49,375 89,324
Net cash outflow from operating activities    (2,977,116) (3,316,712)
2 Analysis of net funds
      Other
    1 January  non- cash  31 December
    2015 Cash flow changes 2015
    £ £ £ £
Net cash
Cash at bank and in hand  452,824 (220,359) – 232,465
  452,824 (220,359) – 232,465 30   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2015
1 Principal accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below.
1.1 Basis of preparation
ValiRx Plc is a company incorporated in the United Kingdom under the Companies Act 1985, which is listed on the AIM market of the London Stock 
Exchange Plc. The address of its registered office is 24 Greville Street, London EC1N 8SS.
The registered number of the Company is 03916791.
The Group financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union 
(‘IFRSs’), International Financial Reporting Interpretations Committee (‘IFRIC’) interpretations and the Companies Act 2006 applicable to companies reporting 
under IFRS.
The Group financial statements have been prepared under the historical cost convention or fair value where appropriate.
1.2 Going concern
The current economic environment is challenging and the Group have reported an operating loss for the year. These losses will continue in the current 
accounting year to 31 December 2016.
The company carries out regular fund-raising exercises in order that it can provide the necessary working capital for the Group. Further funds will be required 
to finance the Group’s work programme. As detailed in note 24, since the year end, the Group has raised £1.02m before expenses through two issues of new 
Ordinary Shares.
The board expects to continue to raise additional funding as and when required to cover the Group’s development, primarily from the issue of further shares.
As such the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence  
for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. 
1.3 Basis of consolidation
The Group financial statements consolidate the financial statements of the Company and all its subsidiaries (“the Group”). Subsidiaries include all entities over 
which the Group has the power to govern financial and operating policies. The existence and effect of potential voting rights that are currently exercisable 
or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are consolidated from the date on which control 
commences until the date that control ceases. Intra-group balances and any unrealised gains and losses on income or expenses arising from intra-group 
transactions, are eliminated in preparing the consolidated financial statements.
On 3 October 2006, ValiRx Bioinnovation Limited (‘Bioinnovation’) acquired 60.28% of the issued share capital of ValiPharma Limited (‘ValiPharma’) in 
exchange for shares in Bioinnovation. Concurrently, the Company, (“ValiRx”), acquired the entire issued share capital of Bioinnovation in a share for share 
transaction. As a result of these transactions, the former shareholders of ValiPharma became the majority shareholders in ValiRx. Accordingly, the substance 
of the transaction was that ValiPharma acquired ValiRx in a reverse acquisition. Under IFRS 3 “Business Combinations” , the acquisition of ValiPharma has been 
accounted for as a reverse acquisition.
In May 2008 the Company acquired the remaining 39.72% of the issued share capital of ValiPharma, which is now wholly owned by the Group. 
This acquisition was accounted for using the acquisition method of accounting.
In August 2011, the Company acquired for a nominal amount, the outstanding equity of a Finnish non-trading company – ValiRx Finland OY (“ValiFinn”) – 
that it had jointly established with local partners in 2008. As a result of the acquisition, ValiFinn has become a wholly owned subsidiary of the Company.
In November 2013 ValiSeek Limited was formed to enable the Company to entered into a joint venture agreement. The company has a 55.5% holding in  
the issued share capital of ValiSeek.
The assets and liabilities of the Group’s foreign operations are expressed in pounds sterling using exchange rates prevailing at the balance sheet date. 
Income and expense items are translated at the average exchange rate for the period. Material exchange differences arising are classified as equity.  
The translation differences are recognised in the period in which the foreign operation is disposed of.
Intra-group transactions, profits and balances are eliminated in full on consolidation.
1.4 Goodwill
Goodwill on acquisition of subsidiaries represents the excess of the cost of acquisition over the fair value of the Group’s share of the net identifiable net 
assets and contingent liabilities acquired. Identifiable assets are those which can be sold separately or which arise from legal rights regardless of whether 
those rights are separable. Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but is tested annually, or when 
trigger events occur, for impairment and is carried at cost less accumulated impairment losses. Strategic Report
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Financial Statements
31   ValiRx plc   Annual Report and Accounts 2015
1 Principal accounting policies continued
1.5 Other intangible assets
Acquired licences, trademarks and patents are capitalised at cost and are amortised on a straight-line basis over their useful life. Patents are amortised over 
16 years and licences over 16 to 20 years.
Acquired brands are written off in equal annual instalments over their useful economic life, which the Directors estimate to be 15 years. However, following 
the cancellation of ValiMedix Limited’s distribution agreement and the cessation of the Company’s trade in 2014, the Directors carried out a review of the 
carrying value of brands, as a consequence of which the value has been fully impaired. This resulted in an amortisation charge of £nil (2014: £9,603) in excess 
of the normal annual charge of £nil (2014: £996). 
1.6 Research and development
Research expenditure is recognised as an expense and is charged to the income statement in the year in which it is incurred.
Development expenditure is recognised as an expense in the same way unless it meets the recognition criteria of IAS 38 “Intangible Assets” . Regulatory  
and other uncertainties generally mean that such criteria are not met. Where, however, the recognition criteria are met, intangible assets are capitalised  
and amortised over their useful economic lives from product launch.
1.7 Property, plant and equipment
Property, plant and equipment are stated at cost less depreciation.
Depreciation is provided at the following rates per annum to write off the cost of property, plant and equipment, less estimated residual value, on a straight 
line basis from the date on which they are brought into use:
Plant and machinery  33% per annum straight line
Computer equipment  33% per annum straight line
1.8 Impairment of assets
The carrying value of property, plant and equipment and intangibles is reviewed for impairment when events or changes in circumstances indicate the 
carrying value may be impaired. An impairment loss is recognised in the income statement for the amount by which the asset’s carrying amount exceeds  
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
1.9 Inventories
Inventories are valued at the lower of cost and net realisable value.
1.10 Financial assets
The Company classifies its financial assets in the following categories:
• financial assets at fair value through profit or loss;
• loans and receivables;
• held-to-maturity investments; and
• available-for-sale financial assets.
Management determines the classification of its investments at initial recognition.
1.11 Loans and receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The principal financial assets 
of the Company are loans and receivables, which arise principally through the provision of goods and services to customers (e.g. trade receivables) but 
also incorporate other types of contractual monetary asset. They are included in current assets, except for maturities greater than twelve months after the 
balance sheet date. These are classified as non-current assets.
The Group’s loans and receivables are recognised and carried at the lower of their original amount less an allowance for any doubtful amounts. An allowance 
is made when collection of the full amount is no longer considered possible.
The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents in the Consolidated Statement of Financial Position. 
1.12 Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand and short-term deposits with an original maturity of three months or less. The Company 
considers overdrafts (repayable on demand) to be an integral part of its cash management activities and these are included in cash and cash equivalents  
for the purposes of the cash flow statement. 32   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
1 Principal accounting policies continued
1.13 Derivative financial instruments
Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently carried at fair value 
with the changes in fair value recognised in the Income Statement.
1.14 Financial liabilities
The Group does not have any financial liabilities that would be classified as fair value through the profit or loss. Therefore all financial liabilities are classified  
as other financial liabilities as follows.
The Group’s trade and other payables are recognised at their original amount.
1.15 Share capital
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Group’s 
ordinary and deferred shares are classified as equity instruments.
1.16 Retirement benefits: Defined contribution schemes
Contributions to defined contribution pension schemes are charged to the Consolidated Statement of Comprehensive Income in the year to which they relate.
1.17 Taxation
The taxation charge represents the sum of current tax and deferred tax.
The tax currently payable is based on the taxable profit for the period using the tax rates that have been enacted or substantially enacted by the balance 
sheet date. Taxable profit differs from the net profit as reported in the income statement because it excludes items of income or expense that are taxable  
or deductible in other years and it further excludes items that are never taxable or deductible.
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the Group financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted at the balance sheet 
date and are expected to apply when the related deferred income tax asset is realised of the deferred tax liability is settled.
Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available against which the asset can be utilised.
Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited to equity, in which case the deferred tax  
is also dealt with in equity. 
1.18 Foreign currency translation
Transactions in currencies other than Sterling, the presentational and functional currency of the Company, are recorded at the rates of exchange prevailing 
on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the 
rates prevailing on the balance sheet date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated 
at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in the income statement for the 
period, except for exchange differences on non-monetary assets and liabilities, which are recognised directly in equity, where the changes in fair value are 
recognised directly in equity.
On consolidation, the assets and liabilities of the Group’s overseas entities (none of which has the currency of a hyper-inflationary economy) are translated 
at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange 
differences arising, if any, are classified as equity and transferred to the Group’s translation reserve. Such translation differences are recognised as income  
or as expenses in the period in which the operation is disposed of.
1.19 Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the 
assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
1.20 Revenue recognition
Revenue represents sales and services to third party customers in the health sector, stated net of any applicable value added tax. Revenue is recognised 
when the goods and services have been provided.
1.21 Share-based payments
IFRS 2 “Share-based Payments” requires that an expense for equity instruments granted is recognised in the financial statements based on their fair values  
at the date of the grant. This expense, which is in relation to employee share options, is recognised over the vesting period of the scheme. The fair value  
of employee services is determined by reference to the fair value of the awarded grant calculated using the Black Scholes model.
At the year end date, the Group revises its estimate of the number of share incentives that are expected to vest. The impact of the revisions of original 
estimates, if any, is recognised in the Statement of Comprehensive Income, with a corresponding adjustment to equity, over the remaining vesting period.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
33   ValiRx plc   Annual Report and Accounts 2015
1 Principal accounting policies continued
1.22 New standards and interpretations
As at the date of approval of these financial statements, the following standards were in issue but not yet effective. These standards have not been adopted 
early by the Company as they are not expected to have a material impact on the financial statements other than requiring additional disclosure or alternative 
presentation.
     Effective date 
     (period beginning  
     on or after)
IFRS 2  Share based payments – Amendments resulting from the annual improvements cycle 2010-2012 (definition of “vesting conditions”) 01/02/2015
IFRS 3  Business combinations – Amendments resulting from the annual improvements cycle 2010-2012 (scope exception for joint ventures”) 01/02/2015
IFRS 3  Business combinations – Amendments resulting from the annual improvements cycle 2011-2013 (scope exception for joint ventures”) 01/01/2015
IFRS 5  Non-current assets held for sale and discontinued operations – Amendments resulting from September 2014  
annual improvements to IFRSs 01/01/2016
IFRS 7  Financial instruments disclosure – Amendments resulting from September 2014 annual improvements to IFRSs 01/01/2016
IFRS 8  Operating segments – Amendments resulting from the annual improvements cycle 2010-2012 (aggregation of segments,  
reconciliation of segment assets) 01/02/2015
IFRS 9  Financial instruments – incorporating requirements for classification and measurement, impairment, general hedge  
accounting and de-recognition 01/01/2018
IFRS 10  Consolidated financial statements – Amendments regarding the application of consolidation exception 01/01/2016
IFRS 12  Disclosure of interests in other entities – Amendments regarding the application of consolidation exception 01/01/2016
IFRS 13  Fair value measurement – Amendments resulting from the annual improvements cycle 2011-2013 (scope of the portfolio exception) 01/01/2015
IAS 1  Presentation of financial Statements – Amendments resulting from the disclosure initiative 01/01/2016
IAS 7  Statement of cash flows – Amendments resulting from the disclosure initiative 01/01/2017
IAS 12  Income taxes – Amendments regrading recognition of deferred tax assets for unrealised losses 01/01/2017
IAS 16  Property, plant and equipment – Amendments resulting from the annual improvements cycle 2010-2012  
(proportionate restatement of accumulated depreciation on revaluation) 01/02/2015
IAS 16  Property, plant and equipment – clarification of acceptable methods of depreciation and amortisation and amendments  
bringing bearer plants into the scope of IAS 16 01/01/2016
IAS 16  Property, plant and equipment – Amendments bringing bearer plants into scope of IAS 16 01/01/2016
IAS 19  Employee benefits – Amendment to clarify the requirements that relate to how contributions from employees or third parties  
that are linked to service should be attributed to periods of service 01/02/2015
IAS 19  Employee benefits – Amendment resulting from September 2014 Annual Improvements to IFRSs 01/01/2016
IAS 24  Related party disclosures –Amendments resulting from annual improvements 2010-2012 cycle (management entities) 01/02/2015
IAS 27  Separate financial statements – Amendments reinstating the equity method as an accounting option for investments  
in subsidiaries, joint ventures and associates in an entity’s separate financial statements 01/01/2016
IAS 28  Investments in associates and joint ventures – Amendments regarding the application of the consolidation exception 01/01/2016
IAS 36  Impairment of assets – clarification of acceptable methods of depreciation and amortisation 01/01/2016
IAS 38  Intangible assets – Amendments resulting from annual improvements 2010-2012 cycle (proportionate restatement  
of accumulated depreciation and revaluation) 01/02/2015
IAS 38  Intangible assets – Amendments regarding the clarification of acceptable methods of depreciation and amortisation 01/02/2015
The International Financial Reporting Interpretations Committee has also issued interpretations which the Company does not consider will have a significant 
impact on the financial statements.  34   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
2 Critical accounting estimates and judgements
The preparation of the financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts  
of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although 
these estimates are based on management’s best knowledge of the amounts, events or actions, actual results ultimately may differ from these estimates.  
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which  
the estimate is revised. The material areas in which estimates and judgements are applied as follows:
Goodwill impairment
The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. Determining whether goodwill is impaired requires  
an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the Directors  
to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate the present value.
Share-based payments
The estimates of share-based payments costs require that management selects an appropriate valuation model and makes decisions on various inputs  
into the model, including the volatility of its own share price, the probable life of the options before exercise, and behavioural consideration of employees.
Deferred tax assets
Deferred taxation is provided for using the liability method. Deferred tax assets are recognised in respect of tax losses where the Directors believe that it is 
probable that future profits will be relieved by the benefit of tax losses brought forward. The Board considers the likely utilisation of such losses by reviewing 
budgets and medium-term plans for each taxable entity within the Group. If the actual profits earned by the Group’s taxable entities differ from the budgets 
and forecasts used then the value of such deferred tax assets may differ from that shown in these financial statements.
3 Turnover and loss on ordinary activities before taxation
The Directors are of the opinion that under IAS 14 – “Segmental Information” the Group operates in two primary business segments, being drug 
development and the sale of self-test drug kits. The secondary segment is geographic. The Group’s geographical segments are determined by location  
of operations. The Group’s revenues and net assets by both primary and secondary business segments are shown below.
      2015 2014
Class of business      £ £
Revenue
Diagnostics    82,603 87,558
Loss before taxation
Drug development    2,236,471 3,377,752
Diagnostics    330,636 263,583
    2,567,107 3,641,335
Net assets   
Drug development    4,384,768 2,680,889
Diagnostics    148,056 107,140
    4,532,824 2,788,029
      2015 2014
Geographical market      £ £
Revenue
UK    – 2,935
Europe    82,603 84,623
    82,603 87,558
Loss before taxation
UK    2,239,765 3,402,102
Europe    327,342 239,233
    2,567,107 3,641,335
Net assets
UK    4,384,823 2,682,266
Europe    148,001 105,763
    4,532,824 2,788,029
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
35   ValiRx plc   Annual Report and Accounts 2015
4 Operating loss
      2015 2014
      £ £
Operating loss is stated after charging
Amortisation of intangible assets    91,831 90,697
Depreciation of tangible assets    10,906 517
and after crediting
Government grants    (203,391) (210,802)
(Profit)/loss on foreign exchange transactions    – 15,870
Auditors’ remuneration
Fees payable to Company auditors for the audit of the Company and consolidated accounts   14,000 14,000
– The audit of Company’s subsidiaries pursuant to legislation    13,000 13,000
– Auditor’s fees for review of interim accounts    1,270 1,270
5 Finance income
      2015 2014
      £ £
Bank interest    1,074 8,023
 
6 Finance costs
      2015 2014
      £ £
On bank loans and overdrafts    55 1,532
On other loans wholly repayable within five years    1,636 –
On overdue tax    102 –
    1,793 1,532
7 Taxation
      2015 2014
      £ £
Domestic current year tax
Tax credits on research and development – current year    (391,202) (396,864)
Current tax charge    (391,202) (396,864)
Factors affecting the tax charge for the year
Loss on ordinary activities before taxation    2,567,107 (3,641,335)
Loss on ordinary activities before taxation multiplied by effective rate of UK corporation tax of 20.25% (2014: 21.50%)  (519,839)  (782,887)
Effects of
Non deductible expenses    16,370 57,259
Capital allowances for the year in (excess)/deficit of depreciation and amortisation    (3,350) 2,036
Tax losses not utilised    602,751 351,451
Research and development expenditure    (393,372) (122,099)
Other tax adjustments    (93,762) 97,376
    128,637 386,023
Current tax charge    (391,202) (396,864)
No corporation tax arises on the results for the year ended 31 December 2015 due to the losses incurred for tax purposes.
The deferred tax asset, arising from tax losses of £12.3 million (2014: £9.3 million) carried forward, has not been recognised but would become recoverable 
against future trading profits, subject to agreement with HM Revenue and Customs. 36   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
8 Loss per Ordinary Share
The earnings and number of shares used in the calculation of loss per Ordinary Share are set out below:
      2015 2014
Basic
Loss for the financial period    (2,118,335) (3,160,031)
Weighted average number of shares    31,789,529 23,434,303
Loss per share    (6.66)p (13.48)p
The loss and the weighted average number of shares used for calculating the diluted loss per share are identical to those for the basic loss per share.  
The outstanding share options (note 17) would have the effect of reducing the loss per share and would therefore not be dilutive under IAS 33 ‘Earnings per 
Share’ . The number of shares included in the comparative figure for 2014 has been updated to give effect to the restructuring of the share capital which took 
place during the current year (note 18).
Following the issue of 4,187,333 Ordinary Shares of 0.1p each in February 2016, and a further 1,184,211 Ordinary Shares of 0.1p each in April 2016, the 
number of allotted Ordinary Shares of 0.1p each in issue was 43,710,395.
9 Intangible fixed assets 
      Brands and 
    Patents Goodwill licences Total
    £ £ £ £
Cost
At 1 January 2014  786,802 1,177,592 115,000 2,079,394
Additions  223,846 110,751 260,000 594,597
Exchange differences  (8,795) – – (8,795)
At 31 December 2014  1,001,853 1,288,343 375,000 2,665,196
Exchange differences  (6,777) – – (6,777)
Additions  279,662 110,264 – 389,926
At 31 December 2015  1,274,738 1,398,607 375,000 3,048,345
Amortisation
At 1 January 2014  172,231 – 24,401 196,632
Exchange differences  (2,154) – – (2,154)
Charge for the year  60,098 – 30,599 90,697
At 31 December 2014  230,175 – 55,000 285,175
Exchange differences  (2,024) – – (2,024)
Charge for the year  79,956 – 11,875 91,831
At 31 December 2015  308,107 – 66,875 374,982
Net book value
At 31 December 2015  966,631 1,398,607 308,125 2,673,363
At 31 December 2014  771,678 1,288,343 320,000 2,380,021
The goodwill arising on the acquisitions of ValiRx Bioinnovation Limited, ValiPharma Limited, ValiRx Finland OY and ValiSeek Limited is not being amortised 
but will be reviewed on an annual basis for impairment, or more frequently if there are indications that goodwill might be impaired. The impairment review 
comprises a comparison of the carrying amount of the goodwill with its recoverable amount (the higher of fair value less costs to sell and value in use).  
ValiRx Plc has used the value in use method, applying a 15% discount rate.
Goodwill per cash generating unit:       £
ValiPharma Limited     772,229
ValiRx Bioinnovations Limited     394,613
ValiMedix Limited     –
ValiRx Finland OY     10,750
ValiSeek Limited     221,015
Sensitivity analysis is not required as a reasonably possible change in assumptions would not result in an impairment.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
37   ValiRx plc   Annual Report and Accounts 2015
10 Property, plant and equipment 
       Plant and  
       machinery
       £ 
Cost
At 1 January 2014     26,467
Exchange differences     (117)
Additions     1,408
At 31 December 2014     27,758
Exchange differences     (148)
Additions     31,670
Disposals     (21,755)
At 31 December 2015     37,525
Depreciation
At 1 January 2014     25,782
Exchange difference     (48)
Charge for the period     517
At 31 December 2014     26,251
Exchange differences     (54)
On disposals     (21,755)
Charge for the year     10,906
At 31 December 2015     15,348
Net book value
At 31 December 2015     22,177
At 31 December 2014     1,507
11 Financial assets – available-for-sale investments
       Unlisted 
       investments
       £ 
Cost
At 1 January 2015 & at 31 December 2015      1,333,770
Provisions for diminution in value
At 1 January 2015 & at 31 December 2015      1,333,770
Net book value
At 31 December 2015      – 
At 31 December 2014      –
The Group owns 5.5% (2014: 5.5%) (on a fully diluted basis) of the issued share capital of Morphogenesis Inc., a company incorporated in USA. 
Morphogenesis Inc. is a private company in which ValiRx Plc holds a minority interest.
12 Inventories 
      2015 2014
      £ £
Finished goods and goods for resale    43,950 11,150 38   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
13 Trade and other receivables 
      2015 2014
      £ £
Trade receivables     33,290 18,078
Tax recoverable     400,319 396,864
Called up share capital not paid     73 73
Other receivables     195,939 219,857
Prepayments and accrued income     56,773 142,730
    686,394 777,602
Amounts falling due after more than one year and included in the receivables above are:
      2015 2014
      £ £
Other receivables     21,967 14,638
In the Directors’ opinion the carrying amount of receivables is considered a reasonable approximation of fair value. 
14 Derivative financial assets
      2015 2014
      £ £
Due within one year     1,463,023 –
In September 2015, the Company issued 8,161,637 new shares of 0.1p per share at a price of 30.018p per share to YA Global Master SPV Ltd (“Yorkville”)  
with a notional value of £2.45 million. On subscription, the Company received £1.45 million less costs of £167,500.
At the same time, the Company entered into an equity swap agreement with Yorkville for 6,430,872 of these shares with a notional price of 15.55p  
per share i.e. £1 million. Yorkville have hedged the consideration they pay for shares in the Company against the performance of the Company’s share price  
over a 12 month period.
All 8,161,637 shares were allotted with full rights on the date of the transaction.
At each swap settlement, the Company will receive greater or lower consideration calculated on pro-rata basis depending on whether the applicable  
Market Price for the previous month was greater or less than the Benchmark Price (34.21p per share).
As the amount of the consideration receivable by the Company from Yorkville will vary subject to the change in the Company’s share price and will be 
settled in the future, the receivable has been treated as a derivative financial asset and has been designated at fair value through profit or loss.
The fair value of the derivative financial assets has been determined by reference to the Company’s share price and has been estimated as follows:
      Notional number 
      of shares Fair value
     Share price outstanding £
Value of derivative financial assets at 1 January 2015
Value recognised on inception (notional)   15.55p 6,430,872 1,000,000
Gain on revaluation of derivative financial asset   – – 463,023
Value of derivative financial assets at 31 December 2015   22.75p 6,430,872 1,463,023
In December 2013, the Company issued 800 million new Ordinary Shares of 0.1p per share at a price of 0.325p (“Benchmark Price”) per share to  
YA Global Master SPV Limited (“Yorkville”) with a notional value of £2.6 million. The Company entered into an equity swap price mechanism with Yorkville  
for 753,846,154 of these shares for £1.5 million of that amount. Yorkville hedged the consideration they pay for shares in the Company against the 
performance of the Company’s share price over an 18 month period. All 800 million shares were allotted with full rights on the date of the transaction.
At each swap settlement, the Company would receive greater or lower consideration calculated on pro-rata basis depending on whether the applicable 
Market Price for the previous month was greater or less than the Benchmark Price.
As the amount of the consideration receivable by the Company from Yorkville would vary subject to the change in the Company’s share price and would  
be settled in the future, the receivable was treated as a derivative financial asset and has been designated at fair value through profit or loss.
In October 2014, the equity swap agreement was exercised in full by agreement between the parties. The Company received back £1,427,798 of the amount 
swapped with Yorkville, resulting in a loss of £72,202. 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
39   ValiRx plc   Annual Report and Accounts 2015
15 Trade and other payables
      2015 2014
      £ £
Trade payables    447,639 514,200
Taxes and social security costs    18,074 25,076
Other payables    5,040 4,732
Accruals and deferred income    117,795 291,067
    588,548 835,075
In the Directors’ opinion the carrying amount of payables is considered a reasonable approximation of fair value.
16 Retirement benefits
The Group operate defined contribution pension schemes. The assets of the schemes are held separately from those of the Group in independently 
administered funds. The pension cost charge represents contributions payable by the Group to the funds.
Defined contribution
      2015 2014
      £  £
Contributions payable by the Company for the year    53,389 47,019
17 Share-based payments
At 31 December 2015 outstanding awards to subscribe for Ordinary Shares of 0.1p each in the Company, granted in accordance with the rules of the ValiRx 
share option schemes, were as follows:
      Weighted  Weighted
      average  average
      remaining  exercise
      contractual life  price
     2014  (years)  (pence)
Brought forward   367,040 – 95.00
Granted   2,256,000 – 43.13
Lapsed   (51,200) – (95.70)
Carried forward   2,571,840 8.08 52.09
      Weighted  Weighted
      average  average
      remaining  exercise
      contractual life  price
     2015 (years)  (pence)
Brought forward   2,571,840 – 52.09
Granted   1,221,560 – 51.00
Carried forward   3,793,400 8.54 51.74
 
All options were exercisable at the year end. No options were exercised or lapsed during the year.
The number of share options included in the comparative figures for 2014, and the weighted average exercise price, have been updated to give effect to the 
restructuring of the share capital which took place during the year (note 18).
The following share-based payment arrangements were in existence during the current and prior years:
      Exercise Fair value
Options    Number Expiry date price at grant date
1. Granted 23 November 2007  3,440 23/11/2017 1312.50p 193.75p
2. Granted 17 September 2009  20,400 17/09/2019 125.00p 90.00p
3. Granted 8 July 2011  292,000 08/07/2021 93.75p 12.50p
4. Granted 19 January 2014  1,064,000 19/01/2024 43.13p 5.00p
5. Granted 21 October 2014  1,192,000 21/10/2024 45.00p 3.75p
6. Granted 26 June 2015  1,221,560 26/06/2025 51.00p 4.04p 40   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
17 Share-based payments continued
The fair value of the remaining share options has been calculated using the Black-Scholes model. The assumptions used in the calculation of the fair value  
of the share options outstanding during the year are as follows: 
   Grant date  Exercise Expected Expected Risk-free 
Options   share price price volatility option life interest rate 
1. Granted 23 November 2007 1312.50p 1312.50p 35.00% 3.50 4.36%
2. Granted 17 September 2009 262.50p 125.00p 40.00% 4.00 2.50%
3. Granted 8 July 2011 80.00p 93.75p 52.00% 3.00 1.24%
4. Granted 19 January 2014 43.13p 43.13p 17.00% 3.00 0.99%
5. Granted 21 October 2014 45.00p 45.00p 17.00% 3.00 1.00%
6. Granted 26 June 2015 50.50p 51.00p 16.00% 3.00 0.38%
The fair value has been calculated assuming that there will be no dividend yield.
Volatility was determined by reference to the standard deviation of expected share price returns based on a statistical analysis of daily share prices over  
a 3 year period to grant date. All of the above options are equity settled and the charge for the year is £49,375 (2014: £89,324).
18 Share capital 
    2015 2014 2015 2014
    Number Number £ £
Allotted, called up and fully paid
Ordinary Shares of 0.1p each  38,338,851 – 38,339 –
Ordinary Shares of 0.1p each  – 2,941,382,514 – 2,941,383
Deferred shares of 5p each  58,378,365 58,378,365 2,918,918 2,918,918
Deferred shares of 0.9p each  157,945,030 157,945,030 1,421,505 1,421,505
Deferred shares of 12.4p each  30,177,214 – 3,741,974 – 
    8,120,736 7,281,806
In January 2015, the Company raised £800,000, before expenses, through the issue of 400 million new Ordinary Shares of 0.1p each at 0.20p per share.  
The net proceeds of this fundraising will be used for future oncology development work and for general working capital purposes.
In March 2015, the Company raised £800,000, before expenses, through the issue of 400 million new Ordinary Shares of 0.1p each at 0.20p per share.  
The net proceeds of this fundraising will be used for future oncology development work and for general working capital purposes.
In March 2015, the Company issued 30,769,231 Ordinary Shares of 0.1p each to Cancer Research Technology Limited at a price of 0.26p per share in lieu  
of an £80,000 milestone payment.
In May 2015, the shareholders passed the resolutions required to effect a Capital Reorganisation. Every 125 existing Ordinary Shares of 0.1p each (‘Existing 
Ordinary Shares’) were consolidated into one consolidated Ordinary Share of 12.5p each (‘Consolidated Share’). Immediately afterwards, each of the 
Consolidated Shares was sub-divided into one new Ordinary Share of 0.1p each (‘New Ordinary Share’) and one new deferred share of 12.4p each (‘New 
Deferred Shares’). The existing issued share capital at the time of 3,772,151,750 Existing Ordinary Shares was reorganised into 30,177,214 New Ordinary Shares.
On 21 September 2015, the Company raised £2.45m before fees and expenses by way of a Placing of 8,161,637 new Ordinary Shares of 0.1 pence each  
at 30.018 pence per share. Consideration was part satisfied by the issue of a derivative financial instrument (note 14).
The deferred shares have no rights to vote, attend or speak at general meetings of the Company or to receive any dividend or other distribution and have 
limited rights to participate in any return of capital on a winding-up or liquidation of the Company.
19 Financial commitments
At 31 December 2015 the Company was committed to making the following payments under non- cancellable operating leases in the year to  
31 December 2016:
       Land and buildings
      2015 2014
      £ £
Operating leases which expire
Within one year    42,764 27,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
41   ValiRx plc   Annual Report and Accounts 2015
20 Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling activities of the Group, and are all 
Directors of the Company.
      2015 2014
      £ £
Salaries and other short-term employee benefits    297,600 366,125
Salaries and other short-term employee benefits – research & development    311,250 –
Post-employment benefits    23,796 23,796
    632,646 389,921
 
    Salary,  Post-
    bonus  employment
    and fees  benefits 2015 2014
Salaries and fees    £ £ £ £
S Vainikka  201,250 8,796 210,046 158,796
G Morris  158,500 15,000 173,500 103,000
K Alexander  53,000 – 53,000 25,000
G Desler  82,100 – 82,100 54,125
O de Giorgio-Miller  61,000 – 61,000 24,000
S Mäkinen  53,000 – 53,000 25,000
  608,850 23,796 632,646 389,921
The number of Directors for whom retirement benefits are accruing under money purchase pension schemes amounted to 2 (2014: 2).
The Directors interests in share options as at 31 December 2015 are as follows:
   Options at 
   31 December  Exercise Date of First date Final date
Director   2015 price grant of exercise of exercise
S Vainikka 8,000 125.00p 17.09.09 17.09.13 17.09.19
S Vainikka 80,000 93.75p 08.07.11 08.07.11 08.07.21
S Vainikka 192,000 43.125p 19.01.14 19.01.14 19.01.24
S Vainikka 192,000 45.00p 21.10.14 21.10.14 21.10.24
S Vainikka 222,000 51.00p 26.06.15 26.06.15 25.06.25
G Morris 6,000 125.00p 17.09.09 17.09.13 17.09.19
G Morris 48,000 93.75p 08.07.11 08.07.11 08.07.21
G Morris 176,000 43.125p 19.01.14 19.01.14 19.01.24
G Morris 176,000 45.00p 21.10.14 21.10.14 21.10.24
G Morris 191,000 51.00p 26.06.15 26.06.15 25.06.25
K Alexander 3,200 125.00p 17.09.09 17.09.13 17.09.19
K Alexander 48,000 93.75p 08.07.11 08.07.11 08.07.21
K Alexander 160,000 43.125p 19.01.14 19.01.14 19.01.24
K Alexander 160,000 45.00p 21.10.14 21.10.14 21.10.24
K Alexander 173,800 51.00p 26.06.15 26.06.15 25.06.25
G Desler 1,040 1312.50p 23.11.07 23.05.09 23.11.17
G Desler 3,200 125.00p 17.09.09 17.09.13 17.09.19
G Desler 48,000 93.75p 08.07.11 08.07.11 08.07.21
G Desler 176,000 43.125p 19.01.14 19.01.14 19.01.24
G Desler 176,000 45.00p 21.10.14 21.10.14 21.10.24
G Desler 189,760 51.00p 26.06.15 26.06.15 25.06.25
O de Giorgio-Miller 24,000 93.75p 08.07.11 08.07.11 08.07.21
O de Giorgio-Miller 160,000 43.125p 19.01.14 19.01.14 19.01.24
O de Giorgio-Miller 160,000 45.00p 21.10.14 21.10.14 21.10.24
O de Giorgio-Miller 211,000 51.00p 26.06.15 26.06.15 25.06.25
S Mäkinen 64,000 43.125p 19.01.14 19.01.14 19.01.24
S Mäkinen 160,000 45.00p 21.10.14 21.10.14 21.10.24
S Mäkinen 105,000 51.00p 26.06.15 26.06.15 25.06.25 42   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
21 Staff costs
Number of employees
The average monthly number of employees (including Directors) during the year was:
      2015 2014
      Number Number
Directors    8 6
Staff    4 6
    12 12
Employment costs
      2015 2014
      £ £
Wages and salaries    975,229 660,771
Social security costs    70,022 59,855
Other pension costs    53,389 47,019
Costs of share option scheme    49,375 89,324
    1,148,015 856,969
22 Control
The Directors consider that there is no ultimate controlling party.
 
23 Related party transactions
During the year the Director, G Desler, provided the Company and its subsidiaries with bookkeeping services totalling £33,577 (2014: £25,077).
During the year the Director O de-Giorgio Miller invoiced the Company £70,745 (2014: £49,500) for research and development work.
At the year end, the amounts owed to Directors included in trade payables and relating to Directors remuneration and expenses to be reimbursed were  
as follows:
      2015 2014
      £ £
G Desler    86 –
O de Giorgio-Miller    – –
G Morris    488 –
S Vainikka    – 2,975
K Alexander    – –
S Mäkinen    – –
24 Post balance sheet events
In February 2016, the Company raised £502,480, before expenses, through the issue of 4,187,333 new Ordinary Shares of 0.1p each at 12p per share.  
The net proceeds of this fundraising will be used for ongoing drug development and for general working capital purposes.
In March 2016, the Company entered into an agreement with Bracknor Fund Ltd (“Bracknor”), a private mutual fund incorporated in the British Virgin Islands 
(“BVI”), pursuant to which Bracknor has agreed to subscribe for convertible loan notes with an aggregate principal amount of up to £4 million (“CLNs”).  
As part of the agreement, the Company has agreed to issue warrants to Bracknor (“CLN Warrants”). Further details of the CLNs and the CLN Warrants  
are set out below.
Convertible Loan Note Facility
Subject to certain conditions, Bracknor has agreed to subscribe for the CLNs in eight equal tranches of £0.5 million each (“Tranche”). The Company issued  
the Initial Tranche in April 2016 and has the exclusive option to require Bracknor to subscribe for up to seven Tranches of £0.5 million at any time after the 
earlier of (i) 60 days after the issue of the previous Tranche (unless extended in accordance with terms set out in the agreement) and (ii) the date on which  
all existing issued CLNs have been converted into Ordinary Shares in the Company (together the “Trigger Events”) provided that the Company gives notice  
to Bracknor requiring it to subscribe for a further Tranche within 30 trading days of a Trigger Event occurring.
Each Tranche is convertible into Ordinary Shares of the Company (at the election of Bracknor) at the price equivalent to 90% of the of the lowest volume 
weighted average price of the Company’s Ordinary Shares in the 15 trading days immediately preceding the date of conversion, subject to a floor price of  
(i) in respect of the initial tranche 37.5% of the lowest average share price in the 15 trading days immediately preceding the initial tranche issue date and  
(ii) in respect of the subsequent tranches at a rate of 30% of the lowest average trading price in the 15 trading days immediately prior to the relevant issue 
date. The CLNs shall mature on the third anniversary of the issue of the Initial Tranche at which point any outstanding issued CLNs will be converted into 
Ordinary Shares. No interest is payable on the CLNs. An arrangement fee equating to 5% is payable by the Company to Bracknor. 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
43   ValiRx plc   Annual Report and Accounts 2015
24 Post balance sheet events continued
Issue of Warrants
The Company has agreed to issue CLN Warrants such that, at the point of any conversion of CLNs (“Conversion”), the Company shall issue CLN Warrants  
to Bracknor at a rate of 115% of the number of shares to be issued pursuant to the corresponding Conversion. The CLN Warrants shall be exercisable  
at any time prior to the fifth anniversary of the date of their issue.
Use of proceeds
The proceeds of this facility enables ValiRx to expand the VAL201 clinical trial, currently being conducted at UCLH, to a multi-centre study, which also 
includes patients with other solid tumours.
Issue of Convertible Loan Note (“CLN”)
Following the issue of the Initial Tranche CLNs of £500,000 to Bracknor, the Company has also received a conversion notice from Bracknor to convert  
£90,000 of the CLN into Ordinary Shares of the Company (the “Conversion”). Following the Conversion £410,000 of the loan notes remain in issue.
Issue of Equity
As a consequence of the Conversion, the Company conditionally issued and allotted 1,184,211 Ordinary Shares in the Company in consideration of the 
£90,000 loan note. The 1,184,211 Ordinary Shares will rank pari passu with the existing Ordinary Shares. Application for the 1,184,211 Ordinary Shares was 
made to the London Stock Exchange and trading in the shares is commenced on or around 7 April 2016.
Following the issue of equity above the Company’s issued share capital will comprise of 43,710,395 Ordinary Shares.
Issue of Warrants
Pursuant to the Bracknor agreement the Company has also issued Bracknor with a warrant over 4,926,741 Ordinary Shares in the Company, which may  
be exercised at a price of 9 pence per share at any time until the fifth anniversary of issue, being 31 March 2021.
25 Financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises are as follows.
• derivative financial assets;
• trade and other receivables;
• cash and cash equivalents; and
• trade and other payables.
The main purpose of these financial instruments is to finance the Group’s operations. The fair value measurement of the derivative financial assets is as follows:
      Fair value measurement
     Level 1 Level 2 Level 3
     £ £ £
At 31 December 2015   – 1,463,023 –
At 31 December 2014   – – –
A summary of the financial instruments held by category is provided below:
      2015 2014
Financial assets      £ £
Loans and receivables
Trade and other receivables    686,394 777,602
Derivative financial assets    1,463,023 –
Cash and cash equivalents    232,465 452,824
Total loans and receivables    2,381,882 1,230,426
Total financial assets    2,381,882 1,230,426
      2015 2014
Financial liabilities      £ £
Trade and other payables    588,548 835,075
The Directors consider that the carrying value for each class of financial asset and liability, approximates to their fair value. 44   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
25 Financial instruments continued
Financial risk management
The Group’s activities expose it to a variety of risks, including market risk (foreign currency risk and interest rate risk), credit risk and liquidity risk. The Group 
manages these risks through an effective risk management programme and, through this programme, the Board seeks to minimise potential adverse effects 
on the Group’s financial performance.
The Board provides written objectives, policies and procedures with regards to managing currency and interest risk exposures, liquidity and credit risk 
including guidance on the use of certain derivative and non-derivative financial instruments
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s 
credit risk is primarily attributable to its receivables and its cash deposits. It is Group policy to assess the credit risk of new customers before entering contracts. 
The credit risk on liquid funds is limited because the counterparties are banks with high credit- ratings assigned by international credit-rating agencies.
Liquidity risk and interest rate risk
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations 
as they fall due. The Board regularly receives cash flow projections for a minimum period of twelve months, together with information regarding cash 
balances monthly.
The Group is principally funded by equity and invests in short-term deposits, having access to these funds at short notice. The Group’s policy throughout  
the period has been to minimise interest rate risk by placing funds in risk free cash deposits but also to maximise the return on funds placed on deposit.
All cash deposits attract a floating rate of interest. The benchmark rate for determining interest receivable and floating rate assets is linked to the UK base rate.
Foreign currency risk 
The Group has an entity which operates in Europe and is therefore exposed to foreign exchange risk arising from currency exposure to the Euro, the 
functional currency of that subsidiary. The overseas subsidiary operates a separate bank account that is used solely for that subsidiary, thus managing the 
currency in that country. The Group’s net assets arising from the overseas subsidiary are exposed to currency risk resulting in gains or losses on retranslation 
into Sterling. Given the levels of materiality, the Group does not hedge its net investments in overseas operations as the cost of doing so is disproportionate 
to the exposure.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
45   ValiRx plc   Annual Report and Accounts 2015
COMPANY STATEMENT 
OF FINANCIAL POSITION
as at 31 December 2015
     2015  2014
   Notes £ £ £ £
Fixed assets
Intangible assets 2  165,000  170,000
Tangible fixed assets 4  21,113  –
Investments 3  3,362,635  3,128,532
   3,548,748  3,298,532
Current assets
Debtors 6 2,017,188  1,822,376
Derivative financial asset 7 1,463,023  –
Cash at bank and in hand  216,339  433,232
  3,696,550  2,255,608
Creditors: amounts falling due within one year 8 (706,011)  (936,034)
Net current assets   2,990,539  1,319,574
Total assets less current liabilities   6,539,287  4,618,106
Capital and reserves
Called up share capital 10  8,120,736  7,281,806
Share premium account   10,526,862  7,604,732
Merger reserve   637,500  637,500
Share option reserve   203,519  154,144
Profit and loss account   (12,949,330)  (11,060,076)
Total equity   6,539,287  4,618,106
The financial statements were approved by the Board of Directors and authorised for issue on 19 May 2016.
Signed on its behalf by:
Dr S Vainikka
Chief Executive Officer
Company Registration No. 03916791 46   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2015
   Share  Share
  Share  premium Merger option Retained
  capital account reserve reserve earnings Total
  £ £ £ £ £ £
Balance at 1 January 2014  6,359,357 5,925,231 637,500 73,852 (7,696,714) 5,299,226
Changes in equity for 2014
Loss for the year  – – – – (3,372,394) (3,372,394)
Issue of share capital  922,449 2,069,701 – – – 2,992,150
Cost of shares issued  – (390,200) – – – (390,200)
Movement in the year  – – – 89,324 – 89,324
Transfers between reserves  – – – (9,032) 9,032 –
Balance at 31 December 2014  7,281,806 7,604,732 637,500 154,144 (11,060,076) 4,618,106
Changes in equity for 2015
Loss for the year  – – – – (1,889,254) (1,889,254)
Issue of share capital  838,930 3,291,070 – – – 4,130,000
Costs of share issue  – (368,940) – – – (368,940)
Movement in the year  – – – 49,375 – 49,375
Balance at 31 December 2015  8,120,736 10,526,862 637,500 203,519 (12,949,330) 6,539,287
Share capital
Represents the nominal value of the issued share capital.
Share premium account
Represents amounts received in excess of the nominal value on the issue of share capital less any costs associated with the issue of shares.
Merger reserve
Represents the difference between the nominal value of the share capital issued by the Company and the fair value of ValiRx Bioinnovations at the date  
of acquisition.
Share option reserve
Represents the fair value of the share-based payment, determined at the grant date, and expensed over the vesting period.
Retained earnings
Represents accumulated comprehensive income for the year and prior periods. Strategic Report
Governance
Financial Statements
47   ValiRx plc   Annual Report and Accounts 2015
NO TES T O THE COMP ANY  
FINANCIAL STATEMENTS
for the year ended 31 December 2015
1 Accounting policies
Company information
ValiRx Plc is a company limited by shares incorporated in England and Wales. The registered office is 24 Greville Street, London, EC1N 8SS.
1.1 Accounting convention
The balance sheet and the associated notes have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable  
in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements have been prepared on the historical cost convention, modified to include certain financial instruments at fair value.  
The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 December 2015 are the first financial statements of ValiRx Plc prepared in accordance with FRS 102,  
The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2014. An explanation  
of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 13.
The company has taken advantage of the exemption in FRS 102 from the requirement to produce a cash flow statement on the basis that it is a qualifying 
entity and the Company’s cash flows are included in its own consolidated financial statements. The consolidated accounts of ValiRx Plc are available to the 
public and may be obtained from 24 Greville Street, London EC1N 8SS.
1.2 Investments in associates and subsidiaries
Fixed asset investments are stated at cost less provision for diminution in value.
1.3 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment 33% per annum straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset,  
and is credited or charged to profit or loss.
1.4 Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation  
and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition  
date if the fair value can be measured reliably.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent  
that the technical, commercial and financial feasibility can be demonstrated.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development Costs 20 years, straight line
1.5 Impairment of tangible and intangible assets
At each reporting end date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication 
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine 
the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the 
recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an 
indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted  
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset  
for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset  
(or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant 
asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently 
reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased 
carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-
generating unit) prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued 
amount, in which case the reversal of the impairment loss is treated as a revaluation increase. 48   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
1 Accounting policies continued
1.5 Impairment of tangible and intangible assets continued
The ‘percentage of completion method’ is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured 
by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in 
connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, 
prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.
1.6 Financial assets
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102  
to all of its financial instruments.
Financial instruments are recognised in the Company’s statement of financial position when the Company becomes party to the contractual provisions  
of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off  
the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Loans and receivables
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans  
and receivables’ . Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.  
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant 
period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument  
to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the 
financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount 
and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal  
is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. 
The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the 
financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained  
but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
1.7 Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 
are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present 
value of the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 
are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised 
initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised  
at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives  
are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company’s contractual obligations expire or are discharged or cancelled.
NOTES TO THE COMPANY FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
49   ValiRx plc   Annual Report and Accounts 2015
1 Accounting policies continued
1.8 Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are 
recognised as liabilities once they are no longer at the discretion of the Company.
1.9 Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each 
reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging 
instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.10 Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes 
items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s 
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events 
that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences 
are differences between the taxable profits and the results as stated in the financial statements that arise from the inclusion of gains and losses in tax 
assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is measured on a non-discounted basis. A deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis  
of all available evidence, it can be regarded as more likely than not that there will be taxable profits from which the future reversal of the underlying  
timing differences can be deducted.
1.11 Share-based payments
The fair value of equity-settled share based payments to employees is determined at the date of grant and is expensed on a straight-line basis over  
the vesting period based on the Company’s estimate of shares or options that will eventually vest.
1.12 Grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions  
will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify 
performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria  
are satisfied is recognised as a liability.
1.13 Profit and loss account
The Directors have taken advantage of the exemption available under Section 408 of the Companies Act 2006 and have not presented a profit and loss 
account for the Company alone. A loss of £1,889,254 is attributable to shareholders for the financial year ended 31 December 2015 (2014: £3,372,394).
1.14 Financial instruments
Full details of the Company’s policy in relation to financial instruments and management of financial risk are set out in note 25 to the Group financial 
statements. The Company does not hold any derivatives and there is no material difference in the fair value and carrying value of any financial instruments 
held by the Company.
  50   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
2 Intangible fixed assets
       Development costs
       £
Cost
At 1 January 2015     200,000
At 31 December 2015     200,000
Amortisation/impairment
At 1 January 2015     30,000
Charge for the year     5,000
At 31 December 2015     35,000
Carrying amount
At 31 December 2015     165,000
At 31 December 2014     170,000
3 Investments
       Fixed assets
      2015 2014
      £ £
Investments in subsidiaries (note 12)    3,362,635 3,128,532
Movements in fixed asset investments
       Shares
       £
Cost or valuation
At 1 January 2015     3,128,532
Additions     234,103
At 31 December 2015     3,362,635
Impairment
At 1 January 2014 & 31 December 2014     –
Carrying amount
At 31 December 2015     3,362,635
At 31 December 2014     3,128,532
4 Tangible fixed assets
       Computer equipment
       £
Cost
At 1 January 2015     21,755
Additions     31,670
Disposals     (21,755)
At 31 December 2015     31,670
Depreciation and impairment
At 1 January 2015     21,755
Depreciation charged in the year     10,557
Eliminated in respect of disposals     (21,755)
At 31 December 2015     10,557
Carrying amount
At 31 December 2015     21,113
At 31 December 2014     –
NOTES TO THE COMPANY FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
51   ValiRx plc   Annual Report and Accounts 2015
5 Financial instruments
      2015 2014
      £ £
Carrying amount of financial assets
Debt instruments measured at amortised cost    2,017,188 4,747,711
Equity instruments measured at cost less impairment    3,362,635 3,128,532
Instruments measured at fair value through profit or loss    1,463,023 –
Carrying amount of financial liabilities
Measured at amortised cost    (706,011) (936,034)
6 Debtors
       Due within one year
      2015 2014
      £ £
Loans and other receivables    63,268 22,904
Corporation tax recoverable    380,147 370,240
VAT recoverable    106,657 146,363
Amounts due from subsidiary undertakings    1,426,933 1,140,139
Prepayments and accrued income    40,183 142,730
    2,017,188 1,822,376
7 Derivative financial assets
      2015 2014
      £ £
Due within one year    1,463,023 –
In September 2015, the Company issued 8,161,637 new shares of 0.1p per share at a price of 30.018p per share to YA Global Master SPV Ltd (“Yorkville”)  
with a notional value of £2.45 million. On subscription, the Company received £1.45 million less costs of £167,500.
At the same time, the Company entered into an equity swap agreement with Yorkville for 6,430,872 of these shares with a notional price of 15.55p per  
share i.e. £1 million. Yorkville have hedged the consideration they pay for shares in the Company against the performance of the Company’s share price over  
a 12 month period.
All 8,161,637 shares were allotted with full rights on the date of the transaction.
At each swap settlement, the Company will receive greater or lower consideration calculated on pro-rata basis depending on whether the applicable  
Market Price for the previous month was greater or less than the Benchmark Price (34.21p per share).
As the amount of the consideration receivable by the Company from Yorkville will vary subject to the change in the Company’s share price and will be 
settled in the future, the receivable has been treated as a derivative financial asset and has been designated at fair value through profit or loss.
The fair value of the derivative financial assets has been determined by reference to the Company’s share price and has been estimated as follows:
      Notional 
      number of 
      shares  Fair value
     Share price outstanding £
Value of derivative financial assets at 1 January 2015   –
Value recognised on inception (notional)   15.55p 6,430,872 1,000,000
Gain on revaluation of derivative financial asset   – – 463,023
Value of derivative financial assets at 1 January 2015   22.75p 6,430,872 1,463,023
In December 2013, the Company issued 800 million new Ordinary Shares of 0.1p per share at a price of 0.325p (“Benchmark Price”) per share to YA Global 
Master SPV Limited (“Yorkville”) with a notional value of £2.6 million. The Company entered into an equity swap price mechanism with Yorkville for 
753,846,154 of these shares for £1.5 million of that amount. Yorkville hedged the consideration they pay for shares in the Company against the performance 
of the Company’s share price over an 18 month period. All 800 million shares were allotted with full rights on the date of the transaction.
At each swap settlement, the Company would receive greater or lower consideration calculated on pro-rata basis depending on whether the applicable 
Market Price for the previous month was greater or less than the Benchmark Price.
  52   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
7 Derivative financial assets continued
As the amount of the consideration receivable by the Company from Yorkville would vary subject to the change in the Company’s share price and would be 
settled in the future, the receivable was treated as a derivative financial asset and has been designated at fair value through profit or loss.
In October 2014, the equity swap agreement was exercised in full by agreement between the parties. The Company received back £1,427,798 of the amount 
swapped with Yorkville, resulting in a loss of £72,202.
8 Creditors
       Due within one year
      2015 2014
      £ £
Taxation and social security    14,401 15,147
Trade creditors    325,385 379,950
Amounts due to subsidiary undertakings    300,670 320,670
Accruals    60,515 215,535
Other creditors    5,040 4,732
    706,011 936,034
9 Share-based payment transactions
At 31 December 2015 outstanding awards to subscribe for Ordinary Shares of 0.1p each in the Company, granted in accordance with the rules of the ValiRx 
share option schemes, were as follows:
      Weighted 
      average Weighted
      remaining average
      contractual life exercise price
     2014 (years) (pence)
Brought forward   367,040 – 95.00
Granted   2,256,000 – 43.13
Lapsed   (51,200) – (95.70)
Carried forward   2,571,840 8.08 52.09
      Weighted 
      average Weighted
      remaining average
      contractual life exercise price
     2015 (years) (pence)
Brought forward   2,571,840 – 52.09
Granted   1,221,560 – 51.00
Carried forward   3,793,400 8.54 51.74
All options were exercisable at the year end. No options were exercised or lapsed during the year.
 
9 Share-based payment transactions
The number of share options included in the comparative figures for 2014, and the weighted average exercise price, have been updated to give effect to the 
restructuring of the share capital which took place during the year (note 10).
The following share-based payment arrangements were in existence during the current and prior years:
      Exercise Fair value
Options    Number Expiry date price at grant date
1. Granted 23 November 2007  3,440 23/11/2017 1312.50p 193.75p
2. Granted 17 September 2009  20,400 17/09/2019 125.00p 90.00p
3. Granted 8 July 2011  292,000 08/07/2021 93.75p 12.50p
4. Granted 19 January 2014  1,064,000 19/01/2024 43.13p 5.00p
5. Granted 21 October 2014  1,192,000 21/10/2024 45.00p 3.75p
6. Granted 26 June 2015  1,221,560 26/06/2025 51.00p 4.04p
NOTES TO THE COMPANY FINANCIAL STATEMENTS continued
for the year ended 31 December 2015 Strategic Report
Governance
Financial Statements
53   ValiRx plc   Annual Report and Accounts 2015
9 Share-based payment transactions continued
The fair value of the remaining share options has been calculated using the Black-Scholes model. The assumptions used in the calculation of the fair value  
of the share options outstanding during the year are as follows:
   Grant date  Exercise Expected Expected Risk-free 
Options   share price price volatility option life interest rate 
1. Granted 23 November 2007 1312.50p 1312.50p 35.00% 3.50 4.36%
2. Granted 17 September 2009 262.50p 125.00p 40.00% 4.00 2.50%
3. Granted 8 July 2011 80.00p 93.75p 52.00% 3.00 1.24%
4. Granted 19 January 2014 43.13p 43.13p 17.00% 3.00 0.99%
5. Granted 21 October 2014 45.00p 45.00p 17.00% 3.00 1.00%
6. Granted 26 June 2015 50.50p 51.00p 16.00% 3.00 0.38%
The fair value has been calculated assuming that there will be no dividend yield.
Volatility was determined by reference to the standard deviation of expected share price returns based on a statistical analysis of daily share prices over  
a 3 year period to grant date. All of the above options are equity settled and the charge for the year is £49,375 (2014: £89,324).
 
10 Share capital
      2015 2014
      £ £
Ordinary Share capital
Issued and fully paid
38,338,851 Ordinary Shares of 0.1p each    38,339 –
2,941,380,514 Ordinary Shares of 0.1p each    – 2,941,383
58,378,365 Deferred shares of 5p each    2,918,918 2,918,918
157,945,030 Deferred shares of 0.9p each    1,421,505 1,421,505
30,177,214 Deferred shares of 12.4p each    3,741,974 –
    8,120,736 7,281,806
In January 2015, the Company raised £800,000, before expenses, through the issue of 400 million new Ordinary Shares of 0.1p each at 0.20p per share.  
The net proceeds of this fundraising will be used for future oncology development work and for general working capital purposes.
In March 2015, the Company raised £800,000, before expenses, through the issue of 400 million new Ordinary Shares of 0.1p each at 0.20p per share.  
The net proceeds of this fundraising will be used for future oncology development work and for general working capital purposes.
In March 2015, the Company issued 30,769,231 Ordinary Shares of 0.1p each to Cancer Research Technology Limited at a price of 0.26p per share in lieu  
of an £80,000 milestone payment.
In May 2015, the shareholders passed the resolutions required to effect a Capital Reorganisation. Every 125 existing Ordinary Shares of 0.1p each (‘Existing 
Ordinary Shares’) were consolidated into one consolidated Ordinary Share of 12.5p each (‘Consolidated Share’). Immediately afterwards, each of the 
Consolidated Shares was sub-divided into one new Ordinary Share of 0.1p each (‘New Ordinary Share’) and one new deferred share of 12.4p each (‘New 
Deferred Shares’). The existing issued share capital at the time of 3,772,151,750 Existing Ordinary Shares was reorganised into 30,177,214 New Ordinary Shares.
On 21 September 2015, the Company raised £2.45 million before fees and expenses by way of a Placing of 8,161,637 new Ordinary Shares of 0.1 pence each  
at 30.018 pence per share. Consideration was part satisfied by the issue of a derivative financial instrument (note 7).
The deferred shares have no rights to vote, attend or speak at general meetings of the Company or to receive any dividend or other distribution and have 
limited rights to participate in any return of capital on a winding-up or liquidation of the Company. 54   Annual Report and Accounts 2015   ValiRx plc
Financial Statements
NOTES TO THE COMPANY FINANCIAL STATEMENTS continued
for the year ended 31 December 2015
11 Related party transactions
Remuneration of key management personnel
Full details of remuneration of key management personnel are given in note 20 to the consolidated financial statements.
Other transactions with related parties
The company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102, Section 33, not to disclose transactions 
entered into between two or more members of a group, as the Company is the ultimate parent undertaking of the group to which it is party to the transactions.
During the year, G Desler, Director, provided the Company with bookkeeping services totalling £9,000 (2014: £12,500).
During the year, O de-Giorgio Miller, Director, invoiced the Company £70,745 (2014: £49,500) for research and development work.
At the year end, the amounts owed to the Directors included in creditors and relating to Directors’ remuneration and expenses to be reimbursed were  
as follows:
      2015 2014
      £ £
G Desler    86 –
G Morris    488 –
S Vainikka    – 2,975
12 Subsidiaries
These financial statements are separate company financial statements for ValiRx Plc.
Details of the Company’s subsidiaries at 31 December 2015 are as follows:
 Country of  Proportion of Proportion of
 incorporation ownership voting power
 (or residence) interest (%) held (%) Nature of business
ValiRx Bioinnovation Limited England & Wales 100.00% 100.00% Intermediate Holding Company
ValiPharma Limited* England & Wales 100.00% 100.00% Therapeutic research & development
ValiMedix Limited England & Wales 100.00% 100.00% Dormant
ValiRx Finland OY Finland 100.00% 100.00% Therapeutic research & development
ValiSeek Limited England & Wales 55.00% 55.00% Therapeutic research & development
* 60.28% is owned by ValiRx Bioinnovation Limited and 39.72% by the Company.
13 Transition to FRS 102
This is the first year that the Company has presented its results under FRS 102. The last financial statements under UK GAAP were for the year ended  
31 December 2014. The date of transition to FRS 102 was 1 January 2014. There have been no changes in accounting policies between UK GAAP and  
FRS 102. Therefore no reconciliation is required for the profit for the financial year ended 31 December 2014 and the total equity as at 1 January 2014  
and 31 December 2014 as previously reported. ValiRx plc   Annual Report and Accounts 2015
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