ValiRx plc Annual Report and Accounts 2013
Making a structural change
to development technologies ValiPharma 
is the therapeutics 
division, with two 
embedded technologies 
primarily directed 
at the treatment 
of cancers
ValiFinn 
is the biomarkers 
and diagnostic 
development  
division
The Company listed  
on AIM in October 2006 and  
is creating a portfolio of innovative 
products through investment in specific 
development projects. It actively manages 
projects within this portfolio as a trading 
company and is not an investment vehicle. 
The ValiRx 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.
The Company 
operates the 
following divisional 
companies:
ValiRx plc is a biopharmaceutical company 
developing novel technologies and products in 
oncology therapeutics and diagnostics. The product 
focus is in the epigenomic analysis and treatment 
of cancer, but the technologies can be applied 
to other fields as well, such as neurology and 
inflammatory diseases. 01
Corporate Governance Business Overview Financial Statements
ValiRx plc | Annual Report and Accounts 2013
Highlights of the year
Operational highlights
 }  GeneICE‑based lead compound VAL101 continues to show 
good progress in the pre‑clinical phase – the programme 
currently benefits from a second Eurostars grant for 
up to €1.6m
 } Biomarker development programme, to support clinical and 
pre‑clinical development, is now producing preliminary results. 
The programme is supported extensively by Finnish government 
regional funding
 } VAL201 entering enhanced First‑in‑Human clinical trial leading 
to a Phase 2 study
Business Overview
Who we are IFC
Highlights of the year 01 
At a glance 02
Chairman’s statement 04
Chief Executive’s report 05
Risks and uncertainties 07
Strategic report 08
Corporate Governance
Board of Directors  10
Company information 11
Directors’ report  12
Independent auditors’ report 14
Financial Statements
Consolidated statement  
of comprehensive income 15
Statement of changes in equity 16
 Consolidated statement of financial position 17
Cash flow statement 18
Notes to the consolidated  
statement of cash flows 19
Notes to the financial statements 20
Company balance sheet 32
Notes to the company financial statements 33
Financial highlights
 }  Administration expenses were £1,361,954 (2012: £1,481,717)
 } Expenditure on research and development rose 60% on the 
previous year to £1,622,383, reflecting increased investment 
made in the VAL201 clinical trial programme
 } Net losses after taxation were £2,597,238 (2012: £2,163,948)
 } As at 31 December 2013, the Company had cash and cash 
equivalents of £960,267 (2012: £2,260,783); this has since 
increased substantially following the raising of equity finance 
and the divestment of shares in the US‑listed company 
VolitionRx, in January and February 2014 respectively
 } Since November 2013, ValiRx has successfully secured over 
£4,300,000 of additional cash resource to strengthen the Group’s 
balance sheet and enable the Group to drive the clinical development 
of its lead compound, VAL201 02 ValiRx plc  |  Annual Report and Accounts 2013
At a glance
We focus on the treatment of cancer, specialising
in epigenomic and genetic analysis.
Currently, the Group has two novel 
lead drug candidates. VAL101 is entering 
late stage pre‑clinical development. 
VAL201 is soon to enter First‑in‑Human 
clinical trials primarily in patients with 
prostate cancer.
VAL101
VAL101 is a novel therapeutic based on the Company’s 
proprietary GeneICE (gene inactivation by chromatin 
engineering) platform, which has attracted a second 
€1.6m Eurostars grant to fund its development. It acts 
to target and switch off the gene that expresses Bcl-2, 
a protein that is implicated in about half of all carcinomas. 
Bcl-2 inhibits the critical process of apoptosis 
(programmed cell death), which prevents cancer 
development. Thus, because of its function in 
anti-apoptosis, the Bcl-2 gene has become a major 
target in the development of new, superior anticancer 
therapies. 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.
Read more about our products at:
www.valirx.com/about-us/products-and-technologies
Value inflection
April 
2013
August 
2013
ValiRx Plc – New Eurostars Award
ValiRx and Phamatest Services Limited have been awarded a new Eurostars grant. 
The grant to the consortium is for up to €1.6m; the funds will be used to progress 
the pre‑clinical studies of VAL101, the Company’s lead candidate deriving from the 
GeneICE platform, and to build the associated cancer models. This award follows a 
previous Eurostars grant of €1.4m, the programme in respect of which was completed 
earlier in the year.
ValiRx Plc – New Australian Patent Granted – 
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. ValiRx plc  |  Annual Report and Accounts 2013 03 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
VAL201
VAL201 is a novel peptide for the treatment of 
hormone refractory prostate cancer and also other 
indications of hormone induced unregulated growth 
including endometriosis. These conditions have major 
unmet clinical needs and the personalised approach 
provided by VAL201 promises to significantly improve 
treatment outcomes. Pre-clinical studies conducted in 
collaboration with Oxford University have also established 
that this compound has the potential to reduce side 
effects as it leaves other hormone-induced activities 
working normally. VAL201 is entering first in-human 
trials in cancer patients very soon.
ValiFinn BioMarkers
ValiFinn’s specialist competency lies in epigenomics, 
a rapidly advancing field that enables pairing a prognostic 
and/or predictive biomarker with a targeted drug. 
This is a key part of personalised medicine, particularly 
in cancer patients. The Company is actively discovering, 
developing and validating functional biomarkers with 
high specificity and sensitivity from its five families 
of patents and patent applications and related 
intellectual property. These are diagnostic markers 
of inhibition of signalling pathways, which are target 
sites for novel drugs to treat cancer and predictive 
markers of disease progression.
November 
2013
December
2013
ValiRx Plc – NAV3 Biomarker Patent Granted in Australia
The Company’s method for cancer screening using the NAV3 gene 
biomarker in the field of genetics and oncology received approval by 
the Australian patent office. The granting of this latest patent means 
that ValiRx now has biomarker patent protection in Australia, the US 
and across Europe.
ValiRx Plc – Positive VAL201 Biomarker Update
ValiRx received encouraging and positive results from the Group’s 
laboratory and biomarker unit, ValiFinn, in Finland, on the integral 
biomarker work associated with VAL201’s first‑in‑man trial. This is 
a fundamental part of the clinical development of the compound 
as it will be central to assessing the clinical outcome in prostate 
and other hormone induced cancers. 04 ValiRx plc  |  Annual Report and Accounts 2013
Chairman’s statement
“ I am pleased to
 report a solid
 performance by
 the Group”
I am pleased to report, for the first time 
as Chairman, a solid performance by the Group, 
with real progress seen on a number of important 
fronts during the period. Our key therapeutic 
and diagnostic development programmes 
continue to advance and the recent equity 
investment and divestment of shares in a 
US‑listed entity that we announced recently 
all combine to position the Company strongly 
as we move into a new financial year.
Operating expenses rose to £2,984,337 
(2012: £2,492,193) reflecting the Group’s 
increased investment in its research and 
development programmes, predominantly to 
take the lead drug candidate VAL201 to clinical 
trials and to a much lesser extent to advance 
our GeneICE products to the next stage of 
development. Revenues in the reporting period 
of £124,868 largely derived from our biomarkers 
division, ValiFinn. Research and development 
tax credits were £309,541 (2012: £165,956) 
and bank interest income was £5,552 
(2012: £19,001). Our net loss for the year 
increased to £2,597,238 (2012: £2,163,948), 
however, after adjustment to reflect a change 
in the fair value of available‑for‑sale assets, 
the loss for the year stood at £2,702,258 
(2012: £2,150,055). 
As at 31 December 2013 the Company 
had cash and cash equivalents of £960,267 
(2012: £2,260,783); however, post the 
period end, our cash position has increased 
substantially following the raising of equity 
finance and the divestment of shares in the 
US‑listed company VolitionRx, in January 
and February 2014 respectively. 
In terms of strategy and the appropriate 
positioning of the Company, it is good to 
see ValiRx steadily growing in stature and 
enhancing both the value and number of 
its development assets. I believe the Group 
is well placed to continue in this vein and 
towards those value inflection points that 
exist across its portfolio.
Looking forward, we now have a secure funding 
platform upon which we can consolidate the 
further development of VAL201, VAL101 and 
our biomarker portfolio and importantly, a 
platform from which we can advance VAL201 
through First in‑Human trials. I look forward 
to the Company updating shareholders on 
future developments. 
Oliver de Giorgio-Miller
Non‑executive Chairman
19 March 2014 ValiRx plc  |  Annual Report and Accounts 2013 05 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
Chief Executive’s report
“ 2013 was a good
 year for ValiRx and
 I have been pleased
 to see its therapeutic
 development
 programmes moving
 forward encouragingly”
2013 was a good year for ValiRx and I have been 
pleased to see its therapeutic development 
programmes moving forward encouragingly, 
giving a very positive outlook for the clinical 
trials. Our clinical trial Project Team has signed 
off on the protocol for VAL201, the Company’s 
leading anti‑cancer therapeutic, its enhanced 
Phase 1b trial and its expected advance to 
a Phase 2 study. Product development for 
VAL201 has been successful and world‑class 
clinical partners have been agreed for the 
forthcoming trials.
The period under review also saw VAL101, 
the Company’s lead candidate deriving from 
the GeneICE platform, complete its first €1.4m 
Eurostars programme and this progress was 
subsequently rewarded by a second grant of 
€1.6m. The Company has grown its companion 
diagnostics and biomarker unit and, both before 
and after the year end, we strengthened the 
balance sheet via a successful fundraise.
Fundraising
Since November 2013, the Company has 
raised a total of over £4.3m in additional cash 
resource, through equity investment and the 
divestment of shares in the US‑listed company 
VolitionRx. This fundraising took place in a 
series of transactions, which comprised two 
equity fundraisings and an equity swap, and 
a further $601,578 (£364,000) through the 
divestment in shares of the US‑listed entity. 
The impact of these transactions has been to 
substantially strengthen the Group’s balance 
sheet and to allow the continuing clinical 
development of the lead compounds, VAL101 
and VAL201. This strengthening will hopefully 
enable the Company to potentially take 
advantage of corporate and technological 
opportunities as they may arise.
Divestment
The divestment occurred because the Board 
believed and continues to believe that the 
Company will obtain a better return for its 
shareholders by investing the proceeds 
received from the transaction in the continuing 
development of VAL101 and VAL201 and 
to see their development progress towards 
those respective value inflection points that 
exist across the portfolio. 
VAL201
As has been reported in recent months, our trial 
protocol for our lead therapeutic, VAL201, has 
expanded significantly following advice from the 
principal investigators at University College 
Hospital, London and from the Medicines 
and Healthcare Products Regulatory Agency 
(“MHRA”). The trial has been expanded to 
include not just patients with prostate cancer 
but also patients with other solid tumours, 
such as breast cancer. 
ValiRx is a growing company with
a clear  business model.
Our business model has evolved to become a solid and reliable way to 
increase the Company’s growth potential, while maintaining the desire 
to meet the demand and fill an important gap in the market.
Reduce risk in new
product development 
through a rigorous clinical 
and commercial due 
diligence process
1
Select drug
candidates and 
technologies with 
evidence-based potential 
to address the unmet 
needs of the market
2
Maximise returns 
to shareholders by adding 
value at the earlier stages 
where value increases per 
investment unit are
the greatest
3 06 ValiRx plc  |  Annual Report and Accounts 2013
Chief Executive’s report continued
Discovery Product Optimisation Pre-clinical Phase I Phase II
VAL201 prostate/breast cancer
VAL201 endometriosis
VAL101 apoptosis inducer
Nav3 cancer biomarker
GeneICE discovery platform
• Regulatory filing for clinical trials ongoing
• Clinical production of compound in place
• Preliminary toxicology profile shows positive fertility
• Positive fertility tested
• Several potential cancer indications
• Orphan drug potential
• Diagnostic potential for several indications
• Prototype kit in place and tested
•  Drug discovery tool technology 
for product pipeline
COMPLETED
ValiRx product pipeline
VAL201 continued
In addition, the end points of the study 
have widened to give us an early indication 
of the efficacy of VAL201 in arresting and 
reducing tumour growth. Our number one 
priority in 2014 is to progress the compound 
through its expanded clinical trials and 
beyond whilst, in parallel, we will look to 
continue our dialogue with pharmaceutical 
companies vis‑à‑vis future partnering or 
out‑licensing opportunities.
VAL101 and GeneICE
We have also been advancing pre‑clinical 
studies of VAL101, one of our GeneICE 
drug candidates, with the support of another 
European Union Eurostars grant. The grant for 
€1.6m was announced on 15 August 2013 
and it endorses VAL101’s novelty and potential 
and will enable ValiRx to accelerate the drug’s 
development to build the associated cancer 
models and hopefully to provide new hope 
for patients with orphan cancers. 
Biomarkers
Biomarkers continue to be evaluated by our 
subsidiary company, ValiFinn, which is based 
in Finland, and we were pleased to announce 
recently that ValiFinn has identified companion 
diagnostics for VAL201, which potentially 
could be commercialised or licensed to 
other pharmaceutical companies.
Outlook
In what has been a busy year, I am happy 
to see the team’s hard work rewarded 
with strong progress in our programme 
development activities. We will continue to 
energetically move our compounds forward 
to their next stage, whilst remaining alert for 
opportunities and ways in which to further 
grow the Company and enhance shareholder 
value. I look forward to ValiRx’s continued 
progress and development with both 
excitement and confidence.
Dr Satu Vainikka
Chief Executive
19 March 2014
“ In what has been a
 busy year, I am happy
 to see the team’s hard
 work rewarded with
 strong progress in
 our programme
 development activities” ValiRx plc  |  Annual Report and Accounts 2013 07 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
Risks and uncertainties
The nature of pharmaceutical development is
such that there are significant inherent risks due
to the long and complex development process.
Below are those principal risks and uncertainties that the Board considers 
could have a material impact on the Group’s operational results, financial 
condition and prospects.
Risk status key
 Risk unchanged

Risk increase

Risk decrease
Industry risk
In common with other research and development stage businesses, 
ValiRx’s business risks relate principally to the success of its 
development programmes and to the need to fund its operations through these. 
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 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.

Competition risk
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 works closely with its legal and other advisors and obtains, where 
necessary opinions on competition risk relevant to the Group’s programmes 
and activities.

Financial risk: Cash flow
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. 
As at 31 December 2013, the Group had cash resources of £1m which the 
Group considers sufficient to finance its operational activities until at least 
Q1 2015 and has since raised further funding of £4.3m.

Return on investment
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 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.

Intellectual property risk
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 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.

Counterparty risk
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 works closely with its legal advisors and obtains, where 
necessary opinions on the Counterparty risk relevant to the Group’s 
programmes and activities.

Clinical and regulatory risk
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 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.
 08 ValiRx plc | Annual Report and Accounts 2013
Strategic report
for the year ended 31 December 2013
The Directors present their strategic report for the year ended 31 December 2013.
Principal activities
The principal activity of the Company continued to be that of an investment holding company. The principal activity of the Group is that 
of therapeutic and diagnostic research and development.
The Company has undertaken to develop a novel and ground‑breaking class of therapeutics based on the unique and proprietary GeneICE 
platform and hypergenomics technology.
Strategy
ValiRx plc is a biopharmaceutical company developing novel technologies and products in oncology therapeutics and diagnostics. The product 
focus is in the epigenomic analysis and treatment of cancer, but the technologies can be applied to other fields as well, such as neurology and 
inflammatory diseases.
The Company listed on AIM in October 2006 and is creating a portfolio of innovative products through investment in specific development projects. 
It actively manages projects within this portfolio as a trading company and is not an investment vehicle. The ValiRx 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.
The Company operates through the following divisional companies:
1.  ValiFinn is the biomarkers and diagnostic development division.
2.  ValiPharma is the therapeutics division, with two embedded technologies primarily directed at the treatment of cancers.
Business review
A review of the development and performance of the Group, including important events, progress during the year and likely future developments, 
can be found in the Chairman’s Statement and the Chief Executive’s Report.
In summary:
} } revenues for the year fell to £124,868 (2012: £216,269);
} } administration expenses were £1,361,954 (2012: £1,481,717);
} } expenditure on research and development rose 60% on the previous year to £1,622,383, reflecting increased investment made in the VAL201 
clinical trial programme;
} } net loss after taxation was £2,597,238 (2012: £2,163,948);
} } as at 31 December 2013, the Company had cash and cash equivalents of £960,267 (2012: £2,260,783); this has since increased 
substantially following the raising of equity finance and the divestment of shares in the US‑listed company VolitionRx, in January 
and February 2014 respectively;
} } since November 2013, ValiRx has successfully raised over £4.3m of additional cash resource to strengthen the Group’s balance sheet 
and enable the Group to drive the clinical process of its lead compound, VAL201;
} } development programmes across the Group continue to progress well. Our main activities seek to build on and advance the following: 
the leading anti‑cancer therapeutic VAL201; the first GeneICE‑derived compound VAL101; and biomarker development to complement 
the Company’s therapeutics;
} } VAL201, the Company’s lead drug candidate, will be entering first‑in‑man studies very soon, to address prostate cancer and other solid 
cancers, such as breast and ovarian cancer;
} } GeneICE‑based lead compound VAL101 continues to show good progress in the pre‑clinical phase – the programme currently benefits 
from a second Eurostars grant for up to €1.6m; and
} } biomarker development programme, to support clinical and pre‑clinical development, is now producing preliminary results. The programme 
is supported extensively by Finnish government regional funding. ValiRx plc | Annual Report and Accounts 2013 09 ValiRx plc | Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
Principal risks and uncertainties
In common with other small biotechnology companies, our business is subject to a number of risks and uncertainties, which include:
} } the uncertainty that clinical trials will succeed or lead to commercially viable products. The Group develops many products and some 
may not prove to be successful. The Directors, upon advice from the Group’s Science Advisory Committee, ensure that regular reviews 
of product development are undertaken so that unsuccessful developments can be terminated early in their life cycle;
} } competition from other companies and market acceptance of our products. The Group aims to be ahead of the competition by continual 
development of its products targeted at specific customer requirements;
} } despite extensive product testing prior to market launch, products may produce unanticipated adverse side effects that may hinder 
their marketability. The Group may be insufficiently covered for any possible litigation which in some cases can potentially be open‑ended. 
The Group maintains product liability insurance and ensures systems and processes relating to the manufacture of its products are compliant 
and regularly reviewed;  
} } intellectual property infringement claims by others and the ability to protect our intellectual property. Although the Group attempts to protect 
its intellectual property, there is a risk that patents will not be issued with respect to applications now pending. In addition, there is a risk that 
patents granted or licensed to the Group may not be sufficiently broad in their scope to provide protection against other third party technologies. 
The Group takes professional advice from experienced patent agents and works hard to win patents applied for and to ensure that the scope 
is sufficiently broad;
} } availability and terms of capital needed for the business. The Board continually reviews the twelve month rolling cash flow forecast and the 
development budget every three months to ensure that the Group has sufficient working capital for the ongoing development of products and 
to fund the business generally. We also consider joint ventures with various partners to share the financial burden of product development; and
} } the Group operates in a highly regulated environment for the testing, manufacture and supply of its products. Compliance with clinical and 
regulatory requirements within the EU affects not only the cost of product development and resource use, but also the time required to comply. 
Increased regulation may require products to be amended to comply with regulations and/or products have to be withdrawn, reducing revenues 
and/or increasing costs. Regulatory authorities are increasingly focused on the benefit/risk of pharmaceutical products and safety data making 
it more onerous to obtain regulatory approval. Compliance systems are in place to ensure all clinical, manufacturing and marketing activities 
comply with regulations in the EU and other territories. Standard operating procedures are maintained to ensure compliance with good 
manufacturing practice.
Environmental matters
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.
Oliver de Giorgio-Miller
Chairman
19 March 2014 10 ValiRx plc  |  Annual Report and Accounts 2013
Board of Directors
Our experienced Board of Directors comprises
six dedicated members who are all well respected
within their field.
Dr Satu Vainikka
Chief Executive Officer
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).
Oliver de Giorgio-Miller
Chairman
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. 
He is a director and investment manager of 
an offshore fund, Sarum Investment (SICAV) plc, 
which is exclusively focused on the oncology 
sector. Oliver joined the Board of ValiRx plc in 
May 2011.
George Morris
Chief Operations Officer
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. He is regularly asked to chair 
or participate in conferences in his areas 
of experience, including acting as a 
“Venture Academy” mentor.
10 ValiRx plc | Annual Report and Accounts 2013 ValiRx plc  |  Annual Report and Accounts 2013 11 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
Gerry Desler
Chief Financial Officer
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. Gerry is also the 
finance director of Premier Gold Resources 
plc, an AIM listed company, and is on the 
board of a number of private companies.
Kevin Alexander
Non-executive Director
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. Kevin is a Director of ValiRx plc 
and joined the Board in September 2006. 
He has an MA in law from Cambridge University.
Seppo Mäkinen
Non-executive Director
Seppo Mäkinen has more than 25 years 
executive experience in board level and venture 
capital management on life science companies, 
his special expertise is on biotech/medtech/
diagnostics. The career includes ten years as 
Director in Life Sciences at Sitra (Finnish 
Government Fund), followed by thirteen years 
as co‑founder and Managing Partner in Bio Fund 
Management Oy from this time also five years 
as President of BioFund A/S, Copenhagen. 
With EUR 200M under management, BioFund 
was one of the biggest European VC funds 
investing into life sciences. Seppo Mäkinen 
is currently Board Member in five life science/ 
healthcare companies and advisor to Merieux 
Développement Fund. He received his 
M.Sc. Degree in physical chemistry from 
University of Jyväskylä in 1979.
Directors
O de Giorgio‑Miller 
Dr S Vainikka 
Dr G Morris 
G Desler 
K Alexander 
S Makinen (appointed 4 October 2013)
Secretary
K Alexander
Company number
03916791
Registered office
24 Greville Street 
London 
EC1N 8SS
Auditors
Adler Shine LLP
Chartered Accountants and Statutory 
Auditors 
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
ValiRx plc | Annual Report and Accounts 2013
Company information ValiRx plc  |  Annual Report and Accounts 2013 12 ValiRx plc  |  Annual Report and Accounts 2013
Directors’ report
for the year ended 31 December 2013
The Directors present their report and financial statements for the year ended 31 December 2013.
Results and dividends
The results for the year are set out on page 15.
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 £1,622,383 (2013: £1,010,000) on research and development. Further details on the 
Group’s research and development are included in the Chief Executive’s Report on page 5.
Directors
The following Directors have held office since 1 January 2013:
O de Giorgio-Miller
Dr S Vainikka
Dr G Morris
G Desler
K Alexander
S Makinen (appointed 4 October 2013)
N Thorniley (resigned 4 October 2013)
The market value of the Company’s shares at 31 December 2013 was 0.35p and the high and low share prices during the period were 0.67p 
and 0.31p respectively.
Significant shareholders
As at 10 March 2014 so far as the Directors are aware, the parties who are directly or indirectly interested in 3% or more of the nominal value of 
the Company’s share capital are as follows:
Shareholders
Number
of shares % of total
YA Global Master SPV Ltd 678,205,123 23.22%
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 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. The Directors are also required to prepare financial 
statements for the Group in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The Directors 
have chosen to prepare the financial statements for the Company in accordance with United Kingdom Generally Accepted Accounting Practice.
Group financial statements
International Accounting Standard 1 requires that financial statements present fairly for each financial year the Group’s financial position, financial 
performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance 
with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards Board’s 
“Framework for the Preparation of Financial Statements”. In virtually all circumstances, a fair presentation will be achieved by compliance with all 
applicable IFRSs. A fair presentation also requires Directors to:
} } select suitable accounting policies and then apply them consistently;
} } present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; and
} } provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the 
impact of particular transactions, other events and conditions on the entity’s financial position and financial performance. ValiRx plc  |  Annual Report and Accounts 2013 13 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
ValiRx plc  |  Annual Report and Accounts 2013 13 ValiRx plc  |  Annual Report and Accounts 2013
Parent company financial statements
Company law requires the Directors to prepare financial statements for each financial year. 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 of the profit or loss 
of the Company for that period. In preparing these financial statements, The Directors are required to:
} } select suitable accounting policies and then apply them consistently;
} } make judgements and accounting estimates that are reasonable and prudent;
} } state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the 
financial statements; and
} } prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company 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.
Financial statements are published on the Group’s website in accordance with legislation in the United Kingdom governing the preparation and 
dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Group’s website is 
the responsibility of the Directors. The Directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
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
Director
Corporate Governance Business Overview Financial Statements 14 ValiRx plc  |  Annual Report and Accounts 2013
We have audited the Group and parent company financial statements (the “financial statements”) of ValiRx Plc for the year ended 31 December 2013 
which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position and Parent Company 
Balance Sheet, 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).
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 12, 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 apparently 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 2013 
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; 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 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
Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF
Independent auditors’ report
to the members of ValiRx plc ValiRx plc  |  Annual Report and Accounts 2013 15 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
Consolidated statement of comprehensive income
for the year ended 31 December 2013
2013 2012
Notes £ £
Revenue 3 124,868  216,269 
Cost of sales (51,618) (72,960)
Gross profit 73,250  143,309 
Research and development (1,622,383) (1,010,476)
Administrative expenses (1,361,954) (1,481,717)
Operating loss 4 (2,911,087) (2,348,884)
Finance income 5 5,552  19,001 
Finance costs 6 (180) (21)
Loss on ordinary activities before taxation (2,905,715) (2,329,904)
Income tax expense 7 308,477  165,956 
Loss for the year (2,597,238) (2,163,948)
Other comprehensive income
Change in fair value of available-for-sale assets (105,020) 13,893 
Loss for the year and total comprehensive income (2,702,258) (2,150,055)
Loss per share – basic and diluted 8
From continuing operations (0.15)p (0.17)p
There are no recognised gains and losses other than those passing through the Consolidated Statement of Comprehensive Income.
The notes on pages 19–31 form part of these statutory accounts. 16 ValiRx plc  |  Annual Report and Accounts 2013
Statement of changes in equity
for the year ended 31 December 2013
Reverse
Share Share Merger acquisition Share option Retained
capital premium reserve reserve reserve earnings Total
Notes £ £ £ £ £ £ £
Balance at 
1 January 2012 5,399,984  3,247,539  637,500  602,413  52,140  (5,515,628) 4,423,948 
Changes in equity 
for 2012
Loss for the year — — —  —  —  (2,163,948) (2,163,948)
Change in fair value 
of available-for-sale 
assets — — —  —  —  13,893  13,893 
Movement in the year — — —  —  21,712  —  21,712 
Issue of shares 651,623 2,280,675  —  —  —  —  2,932,298 
Share issue costs — (191,062) —  —  —  —  (191,062)
Balance at 
31 December 2012 18 6,051,607 5,337,152  637,500  602,413  73,852  (7,665,683) 5,036,841 
Changes in equity 
for 2013
Loss for the year — — — — —  (2,597,238) (2,597,238)
Change in fair value 
of available-for-sale 
assets — — —  — —  (105,020) (105,020)
Issue of shares 17 307,750  692,437  —  —  —  —  1,000,187 
Share issue costs —  (104,358) —  —  —  —  (104,358)
Balance at 
31 December 2013 18 6,359,357  5,925,231  637,500  602,413  73,852  (10,367,941) 3,230,412 
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. ValiRx plc  |  Annual Report and Accounts 2013 17 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
Consolidated statement of financial position
as at 31 December 2013
2013 2012
Notes £ £ £ £
ASSETS
Non-current assets
Intangible assets 9 1,882,762  1,803,405 
Property, plant and equipment 10 685  4,363 
Financial assets: available-for-sale investments 11 768,323  873,343 
2,651,770  2,681,111 
Current assets
Inventories 12 4,078  2,727 
Trade and other receivables 13 490,395  353,855 
Cash and cash equivalents 960,267  2,260,783  
1,454,740  2,617,365 
LIABILITIES
Current liabilities
Trade and other payables 14 (876,098) (261,635)
Net current assets 578,642  2,355,730 
Net assets 3,230,412  5,036,841 
SHAREHOLDERS’ EQUITY
Called up share capital 17 6,359,357  6,051,607 
Share premium 5,925,231  5,337,152 
Merger reserve 637,500  637,500 
Reverse acquisition reserve 602,413  602,413 
Share option reserve 73,852  73,852 
Profit and loss account (10,367,941) (7,665,683)
Total shareholders’ equity 3,230,412  5,036,841 
The notes on pages 19–31 form part of these statutory accounts.
Approved by the Board and authorised for issue on 19 March 2014.
Dr Satu Vainikka
Director
Company Registration No. 03916791 18 ValiRx plc  |  Annual Report and Accounts 2013
Cash flow statement
for the year ended 31 December 2013
2013 2012
£ £ £ £
Net cash outflow from operating activities (2,232,552) (2,131,745)
Taxation 164,892 132,353
Returns on investments and servicing of finance
Interest received 5,552 19,001
Interest paid (180) (21) 
Net cash inflow from returns on investments and servicing of finance 5,372 18,980
Capital expenditure and financial investment
Payments to acquire intangible assets (132,135) (132,145)
Payments to acquire tangible assets (1,922) (2,579)
Receipts from sales of tangible assets — 535 
Net cash outflow for capital expenditure and financial investment (134,057) (134,189)
Financing
Issue of ordinary share capital 1,000,187 2,932,298
Cost of share issue (104,358) (191,062) 
Net cash generated from financing activities 895,829 2,741,236
Net increase in cash and cash equivalents (1,300,516) 626,635
Cash and cash equivalents at beginning of period 2,260,783 1,634,148
Cash and cash equivalents at end of period 960,267 2,260,783
The notes on pages 19–31 form part of these statutory accounts. ValiRx plc  |  Annual Report and Accounts 2013 19 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
Note to the consolidated statement of cash flows
for the year ended 31 December 2013
1 Cash flows from operating activities
2013 2012
£ £
Operating loss (2,911,087) (2,348,884)
Depreciation of tangible assets 5,623 6,762
Amortisation of intangible assets 55,537 48,579
Loss on disposal of tangible assets — 93
Loss on disposal of intangible assets — 25,218
(Increase)/decrease in inventories (1,351) 16,757
Decrease/(increase) in receivables 7,045 (25,344)
Increase in payables within one year 614,463 119,942
Other non-cash movements (2,782) 3,420
Share option charge — 21,712
Cash outflows from operating activities (2,232,552) (2,131,745)
2 Cash and cash equivalents
1 January 31 December
2013 Cash flow 2013
£ £ £
Net cash
Cash at bank and in hand 2,260,783  (1,300,516) 960,267
2,260,783  (1,300,516) 960,267 20 ValiRx plc  |  Annual Report and Accounts 2013
Notes to the financial statements
for the year ended 31 December 2013
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 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.
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.
1.3 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.
1.4 Other intangible assets
Acquired licences, trademarks and patents are capitalised at cost and are amortised on a straightline basis over their useful life. Patents are 
amortised over 16 years and licences over 20 years.
Acquired brands are written off in equal annual instalments over their useful economic life, which the Directors estimate to be 15 years.
1.5 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.
1.6 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 straightline 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
1.7 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. ValiRx plc  |  Annual Report and Accounts 2013 21 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
1 Principal accounting policies continued
1.8 Inventories
Inventories are valued at the lower of cost and net realisable value.
1.9 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.
1.10 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.
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.
1.11 Investments
For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the security 
is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in 
the Statement of Comprehensive Income.
The fair values of quoted investments are based on published market prices.
1.12 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.
1.13 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.
1.14 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.
1.15 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. 22 ValiRx plc  |  Annual Report and Accounts 2013
Notes to the financial statements continued
for the year ended 31 December 2013
1 Principal accounting policies continued
1.16 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.
1.17 Revenue recognition
Revenue represents sales and services to third party customers in the health sector, together with income from grants, stated net of any 
applicable value added tax. Revenue is recognised when the goods and services have been provided.
1.18 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.
1.19 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.
IFRS 9    Financial Instruments – classification and measurement (revised)
IFRS 9    Financial Instruments – Hedge accounting (revised)
IFRS 10    Investment entities (amendment)
IFRS 12    Investment entities (amendment)
IFRS 14    Regulatory deferral accounts
IFRS 2, 3, 8, 13, IAS 16, 38, 24 Annual improvements 2010 – 2012 cycle
IFRS 1, 3, 13, IAS 40  Annual improvements 2011 – 2013 cycle
IAS 19    Defined benefit plans: Employee contributions (amendment)
IAS 27    Separate financial statements (amendment)
IAS 32    Offsetting of Financial Assets and Financial Liabilities (amendment)
IAS 36    Recoverable amount disclosures for non-financial assets (amendment)
IAS 39    Novation of derivatives and continuation of hedge accounting (amendment)
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.
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:
2.1 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.
2.2 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.
2.3 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. ValiRx plc  |  Annual Report and Accounts 2013 23 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview 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.
2013 2012
Class of business £ £
Revenue
Drug development — 52,261
Diagnostics 124,868 164,008
124,868  216,269 
Loss before taxation
Drug development (2,726,580) (2,156,609)
Diagnostics (179,135) (173,295)
(2,905,715) (2,329,904)
Net assets
Drug development 3,088,448 4,866,841
Diagnostics 141,964 170,000
3,230,412 5,036,841
2013 2012
Geographical market £ £
Revenue
UK 3,011  89,662 
Europe 121,857  126,607 
124,868  216,269 
Loss before taxation
UK (2,734,689) 2,252,934 
Europe (171,026) 76,970 
(2,905,715) 2,329,904 
Net assets
UK 3,604,591  4,886,281 
Europe 125,821  150,560 
3,230,412 5,036,841 
4 Operating loss
2013 2012
£ £
Operating loss is stated after charging
Amortisation of intangible assets 55,537  48,579 
Depreciation of tangible assets 5,623  6,762 
Loss on disposal of tangible assets —  93 
Impairment of intangible assets —  25,218 
(Profit)/loss on foreign exchange transactions (3,648) 7,769 
Auditors’ remuneration
Fees payable to Company auditors for the audit of the Company and consolidated accounts 10,500  10,500 
– The audit of Company’s subsidiaries pursuant to legislation 9,500  9,500 
– Auditors’ fees for review of interim accounts 1,270  1,270  24 ValiRx plc  |  Annual Report and Accounts 2013
5 Finance income
2013 2012
£ £
Bank interest 5,552  19,001 
6 Finance costs
2013 2012
£ £
On bank loans and overdrafts 180  21 
7 Taxation
2013 2012
£ £
Domestic current year tax
Tax credits on research and development – current year (309,541) (165,956)
Tax credits on research and development – prior years —  —
Foreign corporation tax 127  — 
Current tax charge (309,414) (165,956)
Factors affecting the tax charge for the year
Loss on ordinary activities before taxation (2,905,715) (2,329,904)
Loss on ordinary activities before taxation multiplied by
effective rate of UK corporation tax of 23.25% (2012: 24.50%) (675,579) (570,827)
Effects of
Non-deductible expenses 622  2,579 
Capital allowances for the year in deficit/(excess) of depreciation and amortisation (1,820)  2,398 
Tax losses not utilised 425,248 458,363 
Research and development expenditure (30,264)  (59,779)
Other tax adjustments —  1,310 
393,986  404,871 
Current tax charge (309,414) (165,956)
No corporation tax arises on the results for the year ended 31 December 2013 due to the losses incurred for tax purposes.
The deferred tax asset, arising from tax losses of £7,785,000 (2012: £5,980,000) carried forward, has not been recognised but would become 
recoverable against future trading profits.
8 Loss per ordinary share
The earnings and number of shares used in the calculation of loss per ordinary share are set out below:
2013 2012
Basic
Loss for the financial period (2,597,238) (2,163,948)
Weighted average number of shares 1,733,106,298  1,288,079,027 
Loss per share (0.15)p (0.17)p
There was no dilutive effect from the share options outstanding during the year.
Following the issue of 902,109,521 ordinary shares of 0.1p each in January 2014, the number of allotted ordinary shares of 0.1p each in issue 
was 2,921,043,530.
Notes to the financial statements continued
for the year ended 31 December 2013 ValiRx plc  |  Annual Report and Accounts 2013 25 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
9 Intangible fixed assets
Brands
and
Patents Goodwill licences Total
£ £ £ £
Cost
At 1 January 2012 563,439  1,177,592  115,000  1,856,031 
Additions 132,145  —  —  132,145 
Exchange differences (3,307) —  —  (3,307)
Impairment (40,412) —  —  (40,412)
At 31 December 2012 651,865  1,177,592  115,000  1,944,457 
Exchange differences 2,802  — —  2,802 
Additions 132,135  — —  132,135 
Impairment —  — —  — 
At 31 December 2013 786,802  1,177,592  115,000  2,079,394 
Amortisation
At 1 January 2012 95,138  —  12,409  107,547 
Exchange differences 120  —  —  120 
Impairment on disposals (15,194) —  —  (15,194)
Charge for the year 42,583  —  5,996  48,579 
At 31 December 2012 122,647  —  18,405  141,052 
Exchange differences 43  —  —  43 
Charge for the year 49,541  —  5,996  55,537 
At 31 December 2013 172,231  —  24,401  196,632 
Net book value
At 31 December 2013 614,571  1,177,592  90,599  1,882,762 
At 31 December 2012 529,218  1,177,592  96,595  1,803,405 
The goodwill arising on the acquisition of ValiRx Bioinnovation Limited, ValiPharma Limited and ValiRx Finland OY 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 
Sensitivity analysis is not required as a reasonably possible change in assumptions would not result in an impairment. 26 ValiRx plc  |  Annual Report and Accounts 2013
10 Property, plant and equipment
Plant and
machinery
£
Cost
At 1 January 2012 23,591 
Exchange differences 10 
Additions 2,579 
Disposals (1,659)
At 31 December 2012 24,521 
Exchange differences 24 
Additions 1,922 
At 31 December 2013 26,467 
Depreciation
At 1 January 2012 14,424 
Exchange difference 3 
On disposals (1,031)
Charge for the period 6,762 
At 31 December 2012 20,158 
Exchange differences 1 
Charge for the year 5,623 
At 31 December 2013 25,782 
Net book value
At 31 December 2013 685 
At 31 December 2012 4,363 
11 Financial assets – available-for-sale investments
Listed Unlisted
investments investments Total
£ £ £
Cost and valuation
At 1 January 2013 873,343  1,333,770  2,207,113 
Revaluation (105,020) —  (105,020)
At 31 December 2013 768,323  1,333,770  2,102,093 
Provisions for diminution in value
At 1 January 2013 and at 31 December 2013 —  1,333,770  1,333,770 
Net book value
At 31 December 2013 768,323  —  768,323 
At 31 December 2012 873,343  —  873,343 
The Group owns 5.5% (2012: 5.5%) (on a fully diluted basis) of the issued share capital of Morphogenesis Inc., a company incorporated in the USA. 
Morphogenesis Inc. is a private company in which ValiRx Plc holds a minority interest.
As at 31 December 2013, the market value of the listed investment in VolitionRx Limited was US$2.48 per share, giving a market value of ValiRx’s 
shareholding of US$1.27m (£768,323).
12 Inventories
2013 2012
£ £
Finished goods and goods for resale 4,078  2,727 
Notes to the financial statements continued
for the year ended 31 December 2013 ValiRx plc  |  Annual Report and Accounts 2013 27 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
13 Trade and other receivables
2013 2012
£ £
Trade receivables 8,398  667 
Tax recoverable 309,541  165,956 
Called up share capital not paid 40  40 
Other receivables 145,317  139,150 
Prepayments and accrued income 27,099  48,042 
490,395  353,855 
In the Directors’ opinion the carrying amount of receivables is considered a reasonable approximation of fair value.
14 Trade and other payables
2013 2012
£ £
Trade payables 742,783  111,403 
Taxes and social security costs 14,111  44,890 
Directors’ current accounts —  10,742 
Other payables —  3,250 
Accruals and deferred income 119,204  91,350 
876,098  261,635 
In the Directors’ opinion the carrying amount of payables is considered a reasonable approximation of fair value.
15 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
2013 2012
£ £
Contributions payable by the Company for the year 49,596  41,359 
16 Share-based payments
At 31 December 2013 outstanding awards to subscribe for ordinary shares of 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 exercise
life price
2012 (years) (pence)
Brought forward 42,880,000  —  0.9
Granted —  —  — 
Lapsed —  —  — 
Carried forward 42,880,000  8.4 0.9
Weighted
average Weighted
remaining average
contractual exercise
life price
2013 (years) (pence)
Brought forward 42,880,000  —  0.9
Granted —  —  — 
Lapsed —  —  — 
Carried forward 42,880,000  7.4 0.9
All options were exercisable at the year end. 28 ValiRx plc  |  Annual Report and Accounts 2013
16 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:
Share options Share options Share options
Grant date 23 November 2007 17 September 2009 8 July 2011
Exercise period November 2007 – 
November 2017
September 2009 – 
September 2019
July 2011 – 
July 2021
Share price at date of grant 10.5p 2.1p 0.64p
Exercise price 10.5p 1p 0.75p
Shares under option 512,000  4,750,000  42,500,000 
Expected volatility 35% 40% 52%
Expected life (years) 3.5 4  3 
Risk-free rate 4.36% 2.50% 1.24%
Expected dividend yield 0.00% 0.00% 0.00%
Fair value per option 1.55p 0.72p 0.10p
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 three year period to grant date. All of the above options are equity settled and the charge for the year is £nil (2012: £21,712).
17 Share capital
2013 2012 2013 2012
Number Number £ £
Allotted, called up and fully paid
Ordinary shares of 0.1p each 2,018,934,009  1,711,184,409  2,018,934  1,711,184 
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 
6,359,357  6,051,607 
On 6 December 2013, the Company completed a Placing of 307,749,600 new ordinary shares of 0.1p each at a price of 0.325p per share 
raising £1m before fees and expenses, to provide the Company and the Group with additional working capital.
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.
18 Reconciliation of movement in shareholders’ funds
2013 2012
£ £
Opening shareholders’ equity 5,036,841  4,423,948 
Loss and total comprehensive income for the financial year (2,702,258) (2,150,055)
Issue of ordinary share capital 307,750  651,623 
Share premium, after expenses 588,079  2,089,613 
Share option reserve —  21,712 
Closing shareholders’ equity 3,230,412  5,036,841 
19 Financial commitments
At 31 December 2013 the Company was committed to making the following payments under non-cancellable operating leases in the year to 
31 December 2014:
Land and
buildings
2013 2012
£ £
Operating leases which expire:
Within one year 27,000 27,000 
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.
2013 2012
£ £
Salaries and other short-term employee benefits 486,538  529,192 
Post-employment benefits 23,796  19,864 
Compensation for loss of office 18,000  — 
528,334  549,056 
Notes to the financial statements continued
for the year ended 31 December 2013 ValiRx plc  |  Annual Report and Accounts 2013 29 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
20 Key management personnel compensation continued
Salary, Post- Compensation
bonus employment for loss
and fees benefits of office 2013 2012
Salaries and fees £ £ £ £ £
S Vainikka 182,500  8,796  —  191,296  189,500 
G Morris 118,000  15,000  —  133,000  126,697 
N Thorniley (resigned 4 October 2013) 26,788  —  18,000  44,788  47,692 
K Alexander 40,000  —  —  40,000  38,500 
G Desler 74,000  —  —  74,000  73,167 
O de Giorgio-Miller 39,000  —  —  39,000  73,500 
S Makinen (appointed 4 October 2013) 6,250  —  —  6,250  — 
486,538  23,796  18,000  528,334  549,056 
The number of Directors for whom retirement benefits are accruing under money purchase pension schemes amounted to two (2012: two).
The Directors interests in share options as at 31 December 2013 are as follows:
Options at
31 December Exercise Date of First date Final date
Director 2013 price grant of exercise of exercise
S Vainikka 1,000,000  1.00p 17.09.09 17.09.13 17.09.19
S Vainikka 10,000,000  0.75p 08.07.11 08.07.11 08.07.21
G Morris 750,000  1.00p 17.09.09 17.09.13 17.09.19
G Morris 6,000,000  0.75p 08.07.11 08.07.11 08.07.21
N Thorniley 400,000  1.00p 17.09.09 17.09.13 17.09.19
N Thorniley 6,000,000  0.75p 08.07.11 08.07.11 08.07.21
K Alexander 400,000  1.00p 17.09.09 17.09.13 17.09.19
K Alexander 6,000,000  0.75p 08.07.11 08.07.11 08.07.21
G Desler 130,000  10.50p 23.11.07 23.05.09 23.11.17
G Desler 400,000  1.00p 17.09.09 17.09.13 17.09.19
G Desler 6,000,000  0.75p 08.07.11 08.07.11 08.07.21
O de Giorgio-Miller 3,000,000  0.75p 08.07.11 08.07.11 08.07.21
21 Staff costs
Number of employees
The average monthly number of employees (including Directors) during the year was:
2013 2012
Number Number
Directors 6  6 
Staff 3  3 
9  9 
Employment costs
2013 2012
£ £
Wages and salaries 718,253  730,121 
Social security costs 49,095  66,574 
Other pension costs 49,596  41,359 
Costs of share option scheme —  21,712 
816,944  859,766 
22 Control
The Directors consider that there is no ultimate controlling party.
23 Related party transactions
During the year the Director, Gerry Desler, provided the Company with bookkeeping services totalling £9,000 (2012: £9,000).
During the year the Director, Oliver de Giorgio-Miller, invoiced the Company £24,750 (2012: £nil) for research and development work.
During the year the Director, Kevin Alexander, provided the Company with legal services totalling £9,199 (2012: £9,199).
At 31 December 2013, the Company was owed £nil (2012: £36,635) from Singapore Volition Pte. Limited a subsidiary of VolitionRx Limited. 
Satu Vainkka is a Director of VolitionRx Limited. 30 ValiRx plc  |  Annual Report and Accounts 2013
23 Related party transactions continued
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:
2013 2012
£ £
G Desler 18,109  —
O De Giorgio-Miller 15,000  — 
G Morris —  3,744 
S Vainikka —  3,199 
K Alexander —  3,799 
24 Post-balance sheet events
In January 2014, the Company raised £2.9m, before expenses, through the issue of 892,307,692 new ordinary shares of 1p each at 0.325p per 
share. The net proceeds of this fundraising will be used for future oncology development work and for general working capital purposes. The 
fundraising comprised:
} } subscription by YA Global Master SPV Ltd (‘Yorkville’) of 800,000,000 new ordinary shares of 0.1p each pursuant to a subscription agreement 
between the Company and Yorkville; and
} } subscriptions by investors introduced by the Company’s broker of 92,307,692 new ordinary shares of 0.1p each.
In conjunction with the fundraising, the Company entered into an equity swap agreement with Yorkville concerning 753,846,154 of the shares 
mentioned above. Pursuant to the equity swap agreement, in return for a payment by the Company to Yorkville of £1.5m, Yorkville shall make 
eighteen monthly settlement payments of £83,333.33 adjusted by reference to a formula related to the difference between the prevailing market 
price of the Company’s ordinary shares and a benchmark price that is equal to the placing price. Therefore, the net funds received by the 
Company in respect of the swap shares will be dependent on the future price performance of the ordinary shares.
In January 2014, the Company issued 9,801,829 new ordinary shares of 0.1p each at a price of 0.328p per share in lieu of £32,150 services 
provided to the Company.
In January 2014, the Company sold the whole of its shareholding of 510,811 shares in VolitionRX for US$601,578 (£364,000).
25 Financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises are as follows:
} } available-for-sale investments;
} } trade and other receivables;
} } cash and cash equivalents; and
} } trade and other payables.
The Group does not use or issue financial instruments of a speculative nature.
A summary of the financial instruments held by category is provided below.
The fair value measurement of available-for-sale investments is as follows:
Fair value measurement
Level 1 Level 2 Level 3
£ £ £
At 31 December 2013 768,323  —  — 
At 31 December 2012 873,343  —  — 
2013 2012
Financial assets £ £
Available-for-sale investments 768,323  873,343 
Loans and receivables
Trade and other receivables 490,395  353,855 
Cash and cash equivalents 960,267  2,260,783 
Total loans and receivables 1,450,662  2,614,638 
Total financial assets 2,218,985  3,487,981 
2013 2012
Financial liabilities £ £
Trade and other payables 876,098  261,635 
The Directors consider that the carrying amount of available-for-sale investments, trade and other receivables and trade and other payables 
approximates their fair value.
Notes to the financial statements continued
for the year ended 31 December 2013 ValiRx plc  |  Annual Report and Accounts 2013 31 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
25 Financial instruments continued
25.1 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.
25.2 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.
25.3 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 infomation 
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.
25.4 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. 32 ValiRx plc  |  Annual Report and Accounts 2013
2013 2012
Notes £ £ £ £
Fixed assets
Intangible assets 2 80,000 85,000 
Tangible assets 3 — 3,469 
Investments 4 3,577,432 3,577,432 
3,657,432 3,665,901 
Current assets
Debtors 5 1,810,454 1,507,949
Cash at bank and in hand 952,457 2,250,299 
2,762,911 3,758,248  
Creditors: amounts falling due within one year 6 (1,121,117) (500,686) 
Net current assets 1,641,794 3,257,562
Total assets less current liabilities 5,299,226 6,923,463
Capital and reserves
Called up share capital 9 6,359,357 6,051,607 
Share premium account 10 5,925,231 5,337,152 
Merger reserves 10 637,500 637,500 
Share option reserve 10 73,852 73,852 
Profit and loss account 10 (7,696,714) (5,176,648)
Shareholders’ funds 11 5,299,226 6,923,463 
Approved by the Board and authorised for issue on 19 March 2014.
Dr Satu Vainikka
Director
Company Registration No. 3916791
Company balance sheet
for the year ended 31 December 2013 ValiRx plc  |  Annual Report and Accounts 2013 33 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
1 Accounting policies     
1.1 Accounting convention
The balance sheet and the associated notes have been prepared under the historical cost convention in accordance with the provisions of 
the Companies Act 2006 and applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Under Financial Reporting Standard 1 the Company is exempt from the requirement to prepare a cash flow statement on the grounds that 
a parent undertaking includes the Company in its own published consolidated financial statements.
The Company is also exempt from FRS 22 “Earnings per Share” as this information is produced in the consolidated accounts.
1.2 Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally 
Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3 Turnover
Revenue represents sales and services to third party customers in the health sector, together with income from Grants, stated net of any 
applicable value added tax.
1.4 Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off 
in the same way unless the Directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, 
the expenditure is deferred and amortised over the period during which the Company is expected to benefit.
1.5 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated 
residual value of each asset over its expected useful life, as follows:
Computer equipment 33% per annum straight line
1.6 Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.7 Deferred taxation
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.
1.8 Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the rates of exchange ruling at the balance sheet date. 
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
1.9 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.
1.10 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 £2,520,065 is attributable to shareholders for the financial year ended 31 December 2012 
(2012: £1,931,093).
1.11 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.
1.12 Share-based payments
FRS 20 “Share-based Payments” requires that the fair value of options awarded to employees is charged to the profit and loss account 
over the period during which the employees become unconditionally entitled to the options.
Notes to the company financial statements
for the year ended 31 December 2013 34 ValiRx plc  |  Annual Report and Accounts 2013
2 Intangible fixed assets
Development
costs
£
Cost
At 1 January 2013 and at 31 December 2013 100,000 
Amortisation
At 1 January 2013 15,000 
Charge for the year 5,000 
At 31 December 2013 20,000 
Net book value
At 31 December 2013 80,000
At 31 December 2012 85,000 
3 Tangible fixed assets
Computer
equipment
£
Cost
At 1 January 2013 19,833 
Additions 1,922 
At 31 December 2013 21,755 
Depreciation
At 1 January 2013 16,364 
Charge for the year 5,391 
At 31 December 2013 21,755 
Net book value
At 31 December 2013 —
At 31 December 2012 3,469
4 Fixed asset investments
Shares in
subsidiary
undertakings
£
Listed
investments
£
Total
£
Cost
Additions — — — 
At 1 January 2013 & at 31 December 2013 2,865,894 711,538 3,577,432 
Net book value
At 31 December 2013 2,865,894 711,538 3,577,432 
At 31 December 2012 2,865,894 711,538 3,577,432 
The principal subsidiary undertakings of the Company are as follows:
Company Country
% of 
shares held Activity
ValiRx Bioinnovation Limited England and Wales 100.00 Holding company
ValiPharma Limited England and Wales 100.00* Therapeutic research and development
Valimedix Limited England and Wales 100.00 Medical diagnostics company
ValiRx Finland OY Finland 100.00 Therapeutic research and development
* 60.28% is owned by ValiRx Bioinnovation Limited and 39.72% by the Company.
The market value of the listed investments as at 31 December 2013 was £768,323 (2012: £873,343).
Notes to the company financial statements continued
for the year ended 31 December 2013 ValiRx plc  |  Annual Report and Accounts 2013 35 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
5 Debtors
2013
£
2012
£
Amounts owed by subsidiary undertakings 1,347,734 1,189,058 
Tax recoverable 309,541 165,956 
Other debtors 130,401 106,130 
Prepayments and accrued income 22,778 46,805 
1,810,454 1,507,949
6 Creditors: amounts falling due within one year
2013
£
2012
£
Trade creditors 706,175 64,955 
Amounts owed to subsidiary undertakings 300,670 300,670 
Taxes and social security costs 11,572 42,181 
Directors’ current accounts — 10,742 
Other creditors — 3,250 
Accruals and deferred income 102,700 78,888 
1,121,117 500,686 
7 Pension and other post-retirement benefit commitments
Defined contribution
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an 
independently administered fund. The pension cost charge represents contributions payable by the Company to the fund.
2013
£
2012
£
Contributions payable by the company for the year 23,796 19,864 
8 Share-based payments
At 31 December 2013 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:
2012
Weighted
average
remaining
contractual life
(years)
Weighted
average
exercise
price
(pence)
Brought forward 42,880,000 — 0.9
Granted — — — 
Lapsed — — — 
Carried forward 42,880,000 8.4 0.9
2013
Weighted
average
remaining
contractual
life
(years)
Weighted
average
exercise
price
(pence)
Brought forward 42,880,000 — 0.9
Granted — — — 
Lapsed — — —
Carried forward 42,880,000 7.4 0.9 36 ValiRx plc  |  Annual Report and Accounts 2013
8 Share-based payments continued
The fair value of 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:
Share
options
Share
options
Share
options
Grant date 23 November 2007 17 September 2009 8 July 2011
Exercise period November 2007 –
November 2017
September 2009 –
September 2019
July 2011 –
July 2021
Share price at date of grant 10.5p 2.1p 0.64p
Exercise price 10.5p 1p 0.75p
Shares under option 512,000 4,750,000 42,500,000 
Expected volatility 35% 40% 52%
Expected life (years) 3.5 4 3 
Risk-free rate 4.36% 2.50% 1.24%
Expected dividend yield 0.00% 0.00% 0.00%
Fair value per option 1.55p 0.72p 0.10p
9 Share capital
2013
Number
2012
Number
2013
£
2012
£
Allotted, called up and fully paid
Ordinary shares of 0.1p each 2,018,934,009 1,711,184,409 2,018,934 1,711,184 
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 
6,359,357 6,051,607 
On 6 December 2013, the Company completed a Placing of 307,749,600 new ordinary shares of 0.1p each at a price of 0.325p per share 
raising £1m before fees and expenses, to provide the Company and the Group with additional working capital.
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.
10 Statement of movements on reserves
Share
premium
account
£
Other reserves
(see below)
£
Profit and
loss account
£
Balance at 1 January 2013 5,337,152 711,352 (5,176,648)
Loss for the year — — (2,520,066)
Premium on shares issued during the year 692,437 — — 
Share premium – other movements (104,358) — — 
Balance at 31 December 2013 5,925,231 711,352 (7,696,714)
Share option reserve
Balance at 1 January 2013 and at 31 December 2013 73,852  
Merger reserve
Balance at 1 January 2013 and at 31 December 2013 637,500  
The merger reserve arises as a result of the acquisition of ValiRx Bioinnovations Limited and 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.
Notes to the company financial statements continued
for the year ended 31 December 2013 37 ValiRx plc  |  Annual Report and Accounts 2013
Corporate Governance Business Overview Financial Statements
11 Reconciliation of movements in shareholders’ funds
2013
£
2012
£
Loss for the financial year (2,520,066) (1,931,093)
Shares issued 1,000,187 2,932,298 
Cost of share issue written off to share premium account (104,358) (191,062)
Other reserves movement — 21,712 
Net (depletion in)/addition to shareholders’ funds (1,624,237) 831,855 
Opening shareholders’ funds 6,923,463 6,091,608 
Closing shareholders’ funds 5,299,226 6,923,463 
12 Related party transactions
During the year the Director, Gerry Desler, provided the Company with bookkeeping services totalling £9,000 (2012: £9,000).
During the year the Director Oliver de Giorgio-Miller invoiced the Company £24,750 (2012: £nil) for research and development work.
During the year the Director, Kevin Alexander, provided the Company with legal services totalling £9,199 (2012: £9,199).
At 31 December 2012, the Company was owed £nil (2012: £36,635) from Singapore Volition Pte. Limited a subsidiary of VolitionRx Limited. 
Satu Vainkka is a director of VolitionRx Limited.
At the year end, the amounts owed to Directors included in trade creditors were as follows:
2013
£
2012
£
G Desler 18,109 — 
O de Giorgio-Miller 15,000 — 
G Morris — 3,744 
S Vainikka — 3,199 
K Alexander — 3,799
ValiRx’s commitment to environmental issues is reflected in 
this annual report which has been printed on Chorus Silk, 
an FSC® Mix Certified paper, which ensures that all virgin 
pulp is derived from well-managed forests and other 
responsible sources. Vegetable based inks have been 
used and most of all dry waste associated with this 
production is diverted from landfill. ValiRx plc
24 Greville Street 
London 
EC1N 8SS