Making a structural change
to development technologies
ValiRx plc Annual Report and Accounts 2014 Strategic Report
HIGHLIGHTS
WELCOME T O  
VALIRX PLC
Operational Highlights
• Approval of VAL201 Phase I/II clinical trial by MHRA.
• Establishment of a Joint Venture – ValiSeek to develop  
 lung cancer opportunity VAL401. Advancement of VAL401  
 through preclinical programme.
• £2.9 million of investment funding raised.
• Initiation second Eurostars award for VAL101.
• Acquisition of TRAC platform.
ValiRx plc is a biopharmaceutical 
company developing technologies  
and products in oncology therapeutics 
and diagnostics.
In Summary
• Revenues for the year fell to £87,558 (2013: £124,868).
• Administration expenses were £1,603,128  
 (2013: £1,361,954).
• Expenditure on Research and Development rose 9%  
 on the previous year to £1,772,338 (2013: £1,622,383) 
 reflecting increased investment made in the VAL201  
 and VAL401 clinical trial programmes.
• Receipt of £210,802 (2013: £nil) grants towards Research 
 and Development.
• Net loss after taxation was £3,244,471 (2013: £2,597,238).
• As at 31 December 2014, the Group had cash and cash 
 equivalents of £452,824 (2013: £960,267). This has since 
 increased following the raising of equity finance in  
 January 2015 and March 2015, thereby enabling the  
 Group to drive the clinical process of its lead compounds,  
 VAL201 and VAL401.
ValiRx plc
Annual Report and Accounts 2014  01
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements
Strategic Report
Highlights IFC
Chairman’s Statement 02
At a Glance 04
ValiRx – the Development  
of Oncology Therapeutics 06
Therapeutics 08
Chief Executive’s Report 12
Our Strategy and Business Model 13
Risks and Uncertainties 14
Corporate Social Responsibility 15
Governance
Board of Directors 16
Directors’ Report 18
Independent Auditors’ Report 20
Financial Statements
Consolidated Statement 
of Comprehensive Income 21
Consolidated Statement 
of Changes in Equity 22
Consolidated Statement  
of Financial Position 23
Consolidated Cash Flow  
Statement 24
Notes to the Consolidated  
Cash Flow Statement 25
Notes to the Consolidated  
Financial Statements 26
Company Balance Sheet 40
Notes to the Company  
Financial Statements 41
Notes 47
View more on our website www.valirx.com/valiseek/valiseek-overview/
Chairman’s Statement p. 02 At a Glance p. 04
Therapeutics p. 08 to 11 Chief Executive’s Report p. 12 “
02
ValiRx plc
Annual Report and Accounts 2014 
CHAIRMAN’S STATEMENT
I am pleased to report 
that in the last 12 months 
we have seen continued 
progress across all areas 
of our business.
Oliver de Giorgio‑Miller
Non-executive Chairman
£2.9m
We raised £2.9 million before expenses  
at the start of January 2014.
I am pleased to report that in the last 12 months 
we have seen continued progress across all areas 
of our business. 
We started the year in good financial shape 
having raised, in aggregate, £2.9 million before 
expenses at the start of January 2014 by way  
of a combination of an equity placing and an 
equity swap Agreement; the latter was exercised 
in full before the year end. Additional equity 
finance (£1.6 million before expenses) was 
secured at the beginning of 2015.
A key priority for 2014 was to obtain the 
necessary formal regulatory permissions from  
the Medicine and Healthcare Products Regulatory 
Agency (“MHRA”) and Ethics Committee to 
commence a Phase I/II, dose escalation study  
at University College London Hospital (“UCLH”),  
to assess the safety and tolerability of our lead 
drug VAL201 in patients with locally advanced  
or metastatic prostate cancer and other advanced 
solid tumours. These permissions were received 
in October at which point patient recruitment 
and testing began. We have since reported that 
VAL201 was safe and well tolerated at the doses 
tested in the first cohort and has now advanced 
to the next elevation of dose, where further  
safety and tolerability testing will be undertaken 
and early stage efficacy will be investigated  
as the trial progresses.
2014 also saw the establishment of a new 
subsidiary, ValiSeek Limited, a risk-sharing joint 
venture company with Tangent Reprofiling 
Limited. ValiSeek holds a worldwide exclusive 
licence from Tangent for the development and 
commercialisation of a novel cancer treatment, 
VAL401. In December we reported that in a 
GLP-regulatory toxicology study of VAL401 
no adverse effects were seen throughout the 
experiment even at a dosage 60 times greater 
than the envisaged dose for patients. This study 
has completed the toxicology package required 
to support ValiSeek’s approach to the regulatory 
authorities in 2015 with respect to advancing  
the drug towards pivotal clinical efficacy trials, 
initially in patients with lung cancer.
Another important accomplishment during  
the reporting period was the grant of new 
European and Japanese patents for our novel 
cancer screening test biomarker, NAV3, which 
is only one of five patent family assets within 
our Finland-based biomarker operation, ValiFinn 
Oy. Current diagnostic methods for cancer rely 
in the main on microscopic analysis of cells in 
biopsies. These work well in detecting established 
tumour cells. However at the early stage of 
cancer and before morphological changes have 
developed, such malignant cell detection is and 
remains difficult. The NAV3 gene biomarker is 
an important breakthrough as it enables the 
detection of cancer cells in tissue samples, 
whether they are primary tumours, metastases 
or pre-malignant cells, at a stage when tumour 
development is only about to start.
Strategic Report 03
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements
£210,802
in grants towards R&D (2013: £nil).
£87,558
Revenues for the year £87,558  
(2013: £124,868).
Lastly, in November we entered into a strategic 
alliance with one of the world’s leading 
biomedical research institutions, Deutsches 
Krebsforschungzentrum (the German Cancer 
Research Center) in Heidelberg, aimed at 
accelerating the translation of the preclinical 
evidence that we have amassed in support of 
our GeneICE technology’s potential to silence 
specific “rebellious genes” implicated in causing 
cancers, and take individualised cancer medicine 
from bench to bedside. As part of the Agreement, 
ValiRx will retain all rights to new GeneICE 
compounds deriving from the collaboration.
Our financial results show revenues for  
the year at £87,558 (2013: £124,868) with  
operating expenses rising 6% to £3,164,664  
(2013: £2,984,337) after receipts of £210,802  
of grants towards R&D (2013: £nil), as a result  
of increased R&D investment and overheads  
to drive VAL201 to Phase I/II clinical trials, 
and complete the VAL401 safety toxicology 
studies before year-end. The net loss for the 
year increased to £3,160,031 (2013: £2,702,258) 
resulting in a reduced loss per share (basic  
and diluted) of 0.08 pence (2013: 0.15 pence).  
As at 31 December 2014 the Company had  
cash and cash equivalents of £452,824  
(2013: £960,267); however, since the period end, 
our cash position has increased significantly 
following a further raising of equity finance,  
which we believe positions the Group well  
to reach its goals across all areas in 2015.
I should like to thank the Board and other 
colleagues at ValiRx, ValiFinn and ValiSeek for their 
contributions during another successful year and 
our shareholders for their continued support.
Oliver de Giorgio‑Miller
Non-executive Chairman
15 April 2015 04
ValiRx plc
Annual Report and Accounts 2014 
AT A GLANCE
We focus on the treatment 
of cancer and associated 
Biomarkers, specialising
in epigenomic and  
genetic analysis.
The principal activity of the Company continued 
to be that of an oncology therapeutics and 
companion diagnostics development company. 
The Company has undertaken to develop a novel 
and ground-breaking class of therapeutics across 
a number of fields in oncology and has taken its 
lead compound, VAL201, into Phase I/II clinical 
trials. The Company listed on the Alternative 
Investment Market (“AIM”) of the London Stock 
Exchange in October 2006. 
The Company has a pipeline of other therapeutic 
drugs, which are currently progressing towards 
clinical trials. The product focus is in the  
targeted analysis and treatment of cancer,  
but the technologies can be applied to  
other fields as well, such as neurology and 
inflammatory diseases.
It actively manages projects within its portfolio 
as a trading company. The ValiRx business model 
spreads the risks of life science technology 
development 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: 
ValiPharma
ValiPharma is the therapeutics division,  
with two embedded technologies primarily 
directed at the treatment of cancers.
ValiFinn
ValiFinn is the Biomarkers and Diagnostic 
development division. ValiRx acquired 
through its ValiFinn subsidiary, the 
complimentary TRAC technology later  
in the year to strengthen the portfolio.
ValiSeek
ValiSeek is a joint venture between ValiRx 
and Tangent Ltd to develop VAL401 in lung 
cancer and potentially other indications.
A review of the development and 
performance of the Group can be found  
in the Chief Executive’s Report (p. 12).
Strategic Report 05
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements
A Dynamic Portfolio 
with Products in the Clinic
VAL201
VAL101
Nav3
VAL401
Optimisation Discovery Product Phase I Phase II Pre-clinical 
Product Pipeline
Read more on p. 08 Read more on p. 09 Read more on p. 10 Read more on p. 11
GeneICE and 
VAL101
3
VAL201
1
Biomarkers and 
Diagnostics
4
VAL401
2 1880’s 1949 1986
2010 2008
1970’s 1990’s
2009 2007 2006
1903
06
ValiRx plc
Annual Report and Accounts 2014 
VALIRX – THE DEVELOPMENT  
OF ONCOLOGY THERAPEUTICS
A snapshot of ValiRx in time and space.
ValiRx’s 
Development
Oncology  
Therapeutic Field
Baltimore surgeon William Halsted 
pioneers a new approach to 
removing breast tumours, radical 
mastectomy, in which the entire 
breast and the surrounding 
lymph nodes and chest muscles 
are removed. This helps reduce 
recurrences of the disease, which 
was previously nearly always fatal.
ValiRx admits onto the AIM 
following the successful reverse 
take-over of Azure Holdings 
plc. The Company’s valuation 
on admission is £12.8 million 
based on an opening share 
price of 1.45 pence per share.
Initiation of in vitro studies completed on GeneICE™ 
therapeutics platform. First GeneICE™ patents granted 
in Australia, Europe and the USA. Creation of diagnostics 
commercialisation business, ValiBio SA. European patent 
rights secured on Nucleosomics™, a high throughput 
screening mechanism for a wide range of cancers. Solid 
progress made on HyperGenomics™, high throughput 
screening mechanism for acute myeloid leukaemia  
and prostate cancer. 
Following results of clinical trials 
conducted in 1946 and 1947, nitrogen 
mustard is approved by the Food and 
Drug Administration (FDA) for the 
treatment of Hodgkin lymphoma.  
Its discovery spurs rapid advancements  
in chemotherapy.
ValiRx Finland Oy, or ValiFinn was founded in 2008 
in Oulu in Finland in a joint collaboration between 
ValiRx plc and local partners (in August 2011 the 
Company became a wholly owned subsidiary of 
ValiRx plc). Further advancement of the preclinical 
programmes from our collaborations with Cancer 
Research Technology Limited and Imperial College. 
Successful completion of a funding round on  
12 May 2008; raising £830,000 net cash proceeds 
for the Company.
CT scanning provides clearer 
images of tumours, guiding 
radiation and other treatments. 
ValiRx is awarded a grant of £270,000 
by the UK’s Government Technology 
Strategy Board under the Eurostars 
scheme for GeneICE development.
The FDA approves the first PSA  
(prostate-specific antigen) test to 
screen for prostate cancer – the most 
common form of cancer in men – in 
men aged 50 and older. In the years 
that follow, widespread use of PSA 
testing leads to a significant jump in 
early-stage prostate cancer diagnoses.
The Company successfully completed 
the sale of ValiBio SA, our wholly 
owned Belgian subsidiary, to a 
Singaporean-registered company, 
Singapore Volition Pte. Limited 
(“Volition”), for a total consideration 
of $1 million (£625,000), of which 
$400,000 was in staged cash 
payments with the balance in 
Ordinary Shares in Volition.
For the first time since  
record-keeping began in 
the 1930’s, cancer mortality 
rates begin to decline.
Five years after Marie Curie’s 
discovery of radium, doctors  
report the first successful use  
of this radioactive element 
to treat cancer, in two Russian 
patients with skin cancer.
FDA
Strategic Report 1997 2005 2012
2014 2012
1998 2010
2013 2011
07
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements
Source: Cancer Progress 
www.cancerprogress.net
ValiMedix Ltd becomes the exclusive 
supplier of the SELFCheck brand 
of Personal Health Screening Tests, 
which is increasingly available 
in pharmacies throughout the UK.
ValiMedix enters into a UK distribution 
agreement with First Health Products 
Limited for the distribution and sale  
of ValiRx’s SELFCheck health screening 
products in the UK.
Successful placing to raise £2.9 million  
allows VAL201 to enter into  
in-human clinical trials.
Lead Compound ValiRx’s drug substance VAL201 has efficacy 
in prostate, breast and ovarian cancer models and also 
addresses endometriosis or hormone-induced abnormal 
cell growth in women whilst the NAV3 Biomarker receives 
approval by the Australian patent office. ValiRx and Phamatest 
Services Limited is also awarded a new Eurostars II grant for 
further GeneICE development.
ValiRx receives European Patent Grant as well  
as Japanese Patent Grant for Nav3 biomarker.
ValiRx establishes ValiSeek Limited (“ValiSeek”)  
a joint venture with Tangent Reprofiling Limited 
whilst also entering into a collaboration agreement 
(the “Agreement”) with the DKFZ to further  
develop GeneICE.
A Phase I/II Clinical trial on VAL201 is  
approved by the Medicine and Healthcare  
Products Regulatory Agency (“MHRA”). 
The FDA approves the first 
molecularly targeted cancer drug, 
rituximab (Rituxan), to treat patients 
with B-cell non-Hodgkin lymphoma 
that no longer responds to other 
treatments.
The FDA approves tamoxifen (Novaldex), 
a hormonal drug already used to prevent 
recurrence of breast cancer, to reduce the risk  
of developing breast cancer in women who  
are at high risk for the disease.
The FDA approves the groundbreaking drug 
trastuzumab (Herceptin) after research shows  
that adding the monoclonal antibody to 
chemotherapy dramatically increases survival  
for women with advanced breast cancer that 
over-produces a protein called HER2.
In 2005, the Childhood Cancer Survivors 
Study reports that survivors’ risk of  
long-term health problems – including 
heart problems, second cancers and 
scarring of the lungs – was five times 
greater than that of their healthy siblings. 
The results are helping oncologists and 
primary care providers monitor and better 
manage the long-term health of the 
millions of cancer survivors alive today.
In a Phase III study, the targeted drug 
ipilimumab (Yervoy) – which boosts 
a specific component of the immune 
system – is found to improve survival 
and delay disease progression in 
patients whose advanced melanoma 
progresses despite other therapies. 
The drug is approved for this use in 
early 2011.
New treatment option for advanced 
prostate cancer. 
£2.9m 1
Prostate Cancer 
The Company’s leading anti-cancer therapeutic 
VAL201 is currently in clinical trials for the 
treatment of prostate cancer and potentially 
other indications of hormone induced 
unregulated growth including endometriosis. 
The Phase I/II trial has been initiated and 
VAL201 was safe and well tolerated at the 
doses tested. Progressing through the dose 
escalation and expansion stages, the study  
is then designed to investigate further details 
of these aspects as well as efficacy. Particular 
emphasis will be placed on evaluating the 
pharmacokinetics, pharmacodynamics and 
early assessment of anti-tumour activity 
in response to VAL201, using a variety of 
measurements including ValiRx’s biomarkers, 
with biomarkers being key indicators in 
personal medicine. 
VAL201 selectively prevents tumour growth  
by specifically inhibiting the proliferation  
of tumour cells. As a result, tumour growth 
is suppressed and metastasis is significantly 
reduced. The approach is a targeted 
therapeutic with pre-clinical results that 
indicate that due to the specific nature  
of this treatment, this therapy is likely  
to be less toxic than many other  
therapeutic options. 
50%
The prognosis for many patients 
with prostate cancer is very  
poor – less than 50% survive 
beyond 2 years.
“
I am thrilled that the VAL201 
clinical development has now 
entered the human patient phase 
and I am looking forward to 
receiving information about the 
compound’s performance and 
behaviour in this critical stage  
of development.
Dr Satu Vainikka
Chief Executive Officer
VAL201
The VAL201 target is also associated with other 
cancers and there is significant potential for 
VAL201 to be used as a treatment for other 
hormone-induced cancers, such as breast  
and ovarian and also endometriosis. 
Endometriosis
Endometriosis is a gynaecological medical 
condition in which cells from the lining of  
the uterus (endometrium) appear and flourish 
outside the uterine cavity lined by endometrial 
cells, which are under the influence of female 
hormones. These endometrial-like cells in  
areas outside the uterus (endometriosis)  
are influenced by hormonal changes and 
respond in a way that is similar to the cells 
found inside the uterus and symptoms  
often worsen with the menstrual cycle.  
The treatments chosen will depend on 
symptoms, age, and lifestyle plans. VAL201 
has been shown though to reduce abnormal 
endometrial growth, whilst leaving other 
hormone-induced activities working normally. 
ValiRx’s initial in-vitro results show a reduction 
in endometrial lesion size directly related 
to dose and two generations of offspring 
produced by treated animals. This strongly 
suggests that the peptide does not affect 
fertility the same way other treatments do.
08
ValiRx plc
Annual Report and Accounts 2014 
THERAPEUTICS
Strategic Report 2
20yrs
During 20 years of prior clinical use, 
the active drug has been safely 
administered long term (chronic 
use of over 2 year’s duration) 
with good compliance.
Indications
Other possible indications
include prostate and  
pancreatic cancer.
Lung Cancer and others 
VAL401 is the reformulation of a generic 
drug that has over 20 years of clinical use for 
treatment of a chronic non-oncology disease 
in an oral capsule. The re-formulation allows 
the drug to access previously unexploited 
anti-cancer activity. VAL401 is progressing 
satisfactorily through its remaining preclinical 
development and towards a clinical trial 
for the treatment of lung cancer and other 
oncology indications. Progress into the clinic 
will comprise a shorter than usual route to 
Market Authorisation by use of prior clinical 
data gathered on the original generic drug. 
Preclinical efficacy data has been collected 
in both non-small cell lung and prostate 
cancers. Preclinical toxicology has revealed no 
side effects beyond those expected from the 
parent drug, with preclinical pharmacokinetic 
data allowing bridging from VAL401 to the 
historical full clinical data package on the 
parent. Formulation stability tests are currently 
underway to complete the CMC package.
“
I am delighted that VAL401 has 
progressed according to schedule 
since being in-licensed to the ValiRx 
group last year. We look forward 
to hearing reports from ValiSeek 
of further advancement over the 
coming year. 
Dr Satu Vainikka
Chief Executive Officer
VAL401
09
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements 10
ValiRx plc
Annual Report and Accounts 2014 
THERAPEUTICS continued
Strategic Report
GeneICE
GeneICE “rebellious gene” technology 
continues to show good progress in the 
pre-clinical phase – the programme currently 
benefits from a second Eurostars grant for  
up to €1.6 million.
Rebellious genes are genes that are 
overexpressed when they should not be  
or are erroneously expressed, e.g., in cancers, 
inflammatory conditions, Alzheimer’s and 
autoimmune diseases. ValiRx’s proprietary 
GeneICE technology enables the selective 
silencing of specific genes by targeted 
histone deacetylation leading to chromatin 
condensation. This prevents access and 
silences gene expression. In nature histone 
deacetylation of a particular gene is brought 
about by recruitment of a histone deacetylase 
complex (HDAC) to the gene. GeneICE 
constructs mimic this natural mechanism 
by delivery to the nucleus of a dual-module 
construct comprising: the binding of  
GeneICE construct to its target gene leads  
to deacetylation of the histones associated 
with the gene, localised chromatin 
condensation and gene silencing.
VAL101
VAL101 is a novel therapeutic based on 
the Company’s proprietary GeneICE (Gene 
Inactivation by chromatin engineering) 
platform. It acts to target and switch “OFF” 
the gene that expresses Bcl-2, a protein that 
is implicated in about half of all carcinomas. 
Pre-clinical studies have established VAL101’s 
efficacy in prostate, ovarian and pancreatic 
cancers, and it may also have anti-tumour 
activity against orphan oncologic indications. 
ValiRx’s GeneICE technology enables the 
selective silencing or the shutting down  
of particular rebellious genes, thereby halting 
and reversing tumour growth.
3
€1.6m
GeneICE has attracted a second  
€1.6 million Eurostars grant  
to fund its development.
GeneICE and VAL101
80%
Bcl-2 is over-expressed in up to  
80% of breast cancers;
90%
90% of prostate cancers;
80%
and 80% of leukaemias. 11
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements
4
Biomarker development programme,  
to support clinical and pre-clinical 
development, is continuing to produce  
results with the recent acquisition of 
complimentary TRAC technology. 
The use of biomarkers with oncology 
therapeutics is one of the fastest growing  
areas of cancer research, as not only can  
the biomarkers identify patients who are  
more likely to respond to a particular  
drug therapy, but they can also indicate 
tumour progression. 
ValiRx’s biomarker subsidiary, ValiFinn in  
Finland provides the Group with exposure  
to the Biomarker market, a key and increasingly 
exciting field within its industry, but also  
to a revenue stream, derived from the 
provision of contract services to the 
pharmaceutical industry.
ValiFinn has built on its specialist biomarker 
expertise to develop its own companion 
diagnostic biomarkers to complement 
ValiRx’s therapeutics, its existing intellectual 
property and its companion diagnostic 
activities, as well as marketing that expertise 
for the development programmes of other 
companies. Its services for consumers  
include biomarker measurements for  
health monitoring. 
+6.3%
By 2016, the global cancer 
biomarkers market is expected to 
have grown by 6.3% to $6.3 billion.
Biomarkers and Diagnostics
ValiFinn conducts the management of certain 
aspects of VAL201 late preclinical work and 
will assist in the regulatory work pertaining 
to the clinical trials and will manage certain 
aspects of the clinical work regarding hormone 
induced refractory cancer.
ValiRx’s proprietary novel NAV3 Cancer 
Screening Test enables the detection of  
cancer cells in tissue samples, whether they  
are primary tumours, metastases or pre-
malignant cell, at a stage when tumour 
development is only about to start. The test  
is based on the detection of specific changes 
in the NAV3 gene and the system of tests can 
be applied to a range of cancers including.
“Transcript Analysis with the Aid of Affinity 
Capture” or TRAC technology enables the 
efficient screening of a large number of  
drug candidates for a wide range of genetic 
safety and efficacy markers. The technology 
platform already has an established customer 
base and it has been generating revenue  
since 2012. Going forward, ValiRx will look  
to leverage upon TRAC’s market presence  
and grow the sales of this diagnostic business. 
The Company believes that together with 
clinical validation, revenues from TRAC will 
grow, which will support both the biomarker 
and therapeutic development businesses. 
ValiFinn, which is itself already generating 
revenues, is well placed to further develop  
as a service/licensing business. 
$3.6bn
The global cancer biomarkers 
market for 2007 was estimated  
to be $3.6 billion. “
12
ValiRx plc
Annual Report and Accounts 2014 
CHIEF EXECUTIVE’S REPORT
Following on from the Chairman’s comprehensive 
review I will comment on the events and 
activities that I find the most significant and  
point the way to the future of the Company. 
The big achievement and the very significant 
event of 2014 was the Company getting formal 
regulatory clearance to undertake and starting  
a clinical trial of VAL201, a peptide directed  
at blocking androgen induced cancer by 
inhibiting a particular function with in large 
protein complex which goes by the acronym  
Src. It has been shown in many systems,  
tested by us, and others, that the effect VAL201 
has in this situation is to prevent cancerous  
cells form dividing under the influence  
of androgen hormones.
Getting to this stage has been the culmination 
of an intense period of work. During which 
the project team has been required to provide 
sufficient robustly manufactured compound 
along with a large set of scientific data and 
toxicological information prior to submitting  
a Clinical Trial Application (“CTA”). A CTA comprises 
a full plan for all aspects of the proposed clinical 
trial. In conjunction with, and as is required, to the 
CTA an Investigational Medical Product Dossier 
(“IMPD”) was produced. This is a document 
outlining all that is known about the science 
surrounding VAL201 and its proposed therapeutic 
use. The IMPD also details manufacture, storage 
and stability of VAL201 over time. Then, on top 
of this is the production of an Investigational 
Brochure (“IB”) which is a summary of the CTA 
and IMPD but also includes medical information 
and is aimed primarily at its use in the clinic and 
wider community. I have to thank the team for 
this herculean effort and then driving though 
the regulatory process of the MHRA Regional 
Ethics Committee and the local R&D approvals 
answering and responding to all requests and 
questions tirelessly.
Now that we are actually in the midst of the 
Trial at UCLH and the initial results are very 
encouraging I am looking forward with  
optimism for VAL201 and its future.
The new subsidiary, a risk-sharing joint venture, 
ValiSeek Limited is a substantial development  
and brings a new novel cancer treatment,  
VAL401 to ValiRx. Using the infrastructure 
developed while getting VAL201 in to the clinic 
and with the results we have obtained during  
the year and the preparation to take the therapy 
into efficacy trialling looks promising, especially  
as the safety and a human toxicology profile  
is well understood.
It should be noted that during the year the 
Company was actively involved in a Eurostar 
European funded grant with partners in Finland 
and Germany as well as with various scientists 
and manufacturing concerns throughout Europe 
and wider. As the Chairman has already described, 
the strategic alliance with the world leading 
Deutsches Krebsforschungzentrum (the German 
Cancer Research Center) matters greatly in the 
continuing development of the GeneICE platform 
and potential products derived from it.
The continuing growth of activity in our Finnish 
subsidiary ValiFinn is pleasing and its core 
activities have progressed well and are in line 
with our plans. Of note are the developments 
surrounding NAV3 mentioned by the Chairman. 
Following on from 
the Chairman’s 
comprehensive  
review I will comment  
on the events and 
activities that I find the  
most significant and point  
the way to the future  
of the Company.
Dr Satu Vainikka
Chief Executive Officer
VAL201
ValiRx achieved formal regulatory 
clearance to undertake a clinical trial  
of VAL201 (now commenced).
Strategic Report 13
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements
Our Strategy  
and Business Model
ValiRx is a growing company with a clear goal. Our business model spreads the  
risks of life science technology developments by minimising financial exposure  
and running a set of projects to defined commercial endpoints. This maximises  
returns to shareholders by adding value at the earlier stages where value  
increases per investment unit are the greatest.
Now that we are actually 
in the midst of the 
Trial at UCLH and the 
initial results are very 
encouraging I am looking 
forward with optimism 
for VAL201 and its future.
“
The work done by ValiFinn, particularly in the 
progress and analysis of the trial of VAL201 
and the efficacy assessments, should also 
be appreciated. Alongside this work, is the 
more mundane but important background 
routine clinical work for which ValiFinn needs 
recognition. I should also record my pleasure 
at the acquisition of the TRAC technology from 
the administrators of Plexpress at the end of 
the year and early thereafter. It is too early to 
say much but it will be significant to ValiRx and 
its activities internally and externally.
In the outlook I am happy to look forward  
to the continuing output from the Clinical trial  
of VAL201, developments with both VAL401 
and GeneICE platform products, along with  
the developments in Biomarkers and 
Diagnostics excite me.
I am very happy to thank all of my colleagues 
at ValiRx for their commitment and hard work 
which has given us a very successful and 
memorable year. I also appreciate and thank 
our shareholders for their continued support.
Dr Satu Vainikka
Chief Executive Officer
15 April 2015
Vision
Our vision is to make a structural change in science.
Aim
Our aim is to engineer a scientific breakthrough  
in human health and wellbeing.
Strategy
We will achieve these goals through early detection  
of disease and therapeutic intervention.
Reduce risk in new product 
development through rigorous  
clinical and commercial  
due diligence. 1
Select drug candidates  
and technologies  
with evidence-based 
potential to address 
unmet market needs.
2
Maximise returns to  
shareholders by adding  
value at the earlier stages  
where value increases  
per investment unit  
are the greatest.
3 14
ValiRx plc
Annual Report and Accounts 2014 
RISKS AND UNCERTAINTIES
Risk  Description Mitigation
The success of the Group’s programmes depends upon the quality of the design and 
the implementation of each programme. The Group utilises a range of external scientific, 
regulatory and clinical experts to help guide its development programmes. The progress 
of the development programmes therefore represents the best indicator of the Group’s 
performance. Successful commercialisation of the Group’s products is likely to depend on 
successful progress through clinical studies, licensing and or partnering and registration. 
Development of product candidates involves a lengthy and complex process and products 
may not meet the necessary requirements in terms of toxicity, efficacy or safety, or the 
relevant regulators may not agree with the conclusions of the Group’s research and may 
require further testing or withhold approval altogether.
The Group’s success depends on acceptance of the Group’s products by the markets, 
including pharmaceutical and biotechnology companies users and third party payers, 
and consequently the Group’s progress may be adversely affected if it is unable to achieve 
market acceptance of its products. Factors which may affect the rate and level of market 
acceptance of any of the Group’s products include the existence or entry on to the market 
of superior competing products or therapies and the price of the Group’s products 
compared to competing products and overall cost effectiveness of the product.
The Group has a history of operating losses which are anticipated to continue until the 
Group is able to generate sufficient revenues from its development programmes. However, 
the Group may need to seek further capital through equity or debt financings in the future 
and if this is not successful, the financial condition of the Group may be adversely affected.
Successful commercialisation of the Group’s products is likely to depend on successful 
progress through clinical studies and registration. Development of product candidates 
involves a lengthy and complex process and products may not meet the necessary 
requirements in terms of toxicity, efficacy or safety, or the relevant regulators may not  
agree with the conclusions of the Group’s research and may require further testing  
or withhold approval altogether.
The Group’s success depends on acceptance of the Group’s products by the markets, 
including various buyers, users and third party payers, and consequently the Group’s 
progress may be adversely affected if it is unable to achieve market acceptance of its 
products. Factors which may affect the rate and level of market acceptance of any of the 
Group’s products include the existence or entry on to the market of superior competing 
products or therapies and the price of the Group’s products compared to competing 
products and overall cost effectiveness of the product.
The Group’s success depends, in part, on its ability to obtain and maintain protection  
for its intellectual and proprietary information, so that it can stop others from making,  
using or selling its inventions or proprietary rights. The Group’s patent applications may  
not be granted and its existing patent rights may be successfully challenged and revoked.
The drug development process is inherently risky and is conducted over several years 
and consequently is costly. Many drug candidates fail in development due to the clinical 
and regulatory risks, and even in those circumstances where drugs are sold, licensed 
or partnered prior to or subsequent to potential or actual approval, sales levels can be 
disappointing due to competition, healthcare regulation and/or intellectual property 
challenges. As a result the returns achieved may be insufficient to cover the costs incurred.
Industry risk
Competition risk
Financial risk:  
Cash flow
Clinical and  
regulatory risk
Counterparty risk
Intellectual  
property risk
Return on investment
The Group manages its clinical and regulatory risk by 
working closely with its expert regulatory advisors and,  
where appropriate, seeking advice from regulatory 
authorities on the design of key development plans  
for its pre-clinical and clinical programmes.
The Group works closely with its legal and other advisors 
and obtains, where necessary opinions on competition risk 
relevant to the Group’s programmes and activities.
As at 31 December 2014, the Group had cash resources  
of £1 million which the Group considers sufficient to finance  
its operational activities until at least Q1 2015 and has  
since raised further funding of £4.3 million.
The Group manages its clinical and regulatory risk by 
working closely with its expert regulatory advisors and, 
where appropriate, seeking advice from bodies on clinical 
and regulatory risk relevant to the Group’s programmes  
and activities.
The Group works closely with its legal advisors and obtains,  
where necessary opinions on the Counterparty risk relevant  
to the Group’s programmes and activities.
The Group invests in maintaining and protecting this 
intellectual property to reduce risks over the enforceability 
and validity of the Group’s patents. The Group works closely 
with its legal advisors and obtains where necessary opinions 
on the intellectual property landscape relevant to the Group’s 
programmes and activities.
The Group looks to mitigate the development and 
commercial risk by partnering drug candidates for late-stage 
development and commercialisation. By partnering in this 
way, part of the risk profile is reduced and the cost to the 
Company of programme development is minimised.
Strategic Report 15
ValiRx plc
Annual Report and Accounts 2014 
Strategic Report Governance Financial Statements
Risk Status
Risk Status Key
Risk increased
Risk unchanged
Risk decreased
ValiRx recognise the obligation to behave as a 
responsible corporate citizen and believe that 
by doing so we will minimise business risk and 
enhance our reputation.
The Board recognises the potential benefits  
of corporate social responsibility (CSR) for  
the competitiveness of ValiRx and encourages 
a culture of continuous improvement in  
CSR-related issues. We have set specific  
policies that cover key aspects of CSR  
and strive to operate at the highest level  
of integrity.
Corporate Social Responsibility represents 
our commitment to economic and social 
development that will have a positive impact 
on the health and well-being of our team 
members, local and global communities,  
and stakeholders at large while advancing  
the quality of our company through 
engagement in the world around us.
At ValiRx, Our Board of Directors recognise 
that good corporate governance is essential 
to running a successful company, and they are 
committed to ensuring that high standards 
are maintained to solidly underpin the 
management of our business affairs.
Corporate Social 
Responsibility
Delivering healthcare solutions that reduce complexity, drive efficiency  
and improve patient wellbeing.
Corporate 
Governance
Our Corporate Social Responsibility Vision
The overriding goals and objective of CSR 
encapsulate our higher mission. 
Core Values
Our values of respect, trust, passion, innovation 
and continuous improvement all call for and 
are enhanced by a focus on the nonfinancial 
aspects of our business. 
What is it about
Our vision is to create, develop and deliver 
innovative healthcare solutions and services 
that help reduce complexity, drive efficiency 
and improve the overall patient wellbeing. 
What are we doing about it
We continually refine our vision and people 
strategy for the future of our business and  
the markets we serve. Reporting is an essential 
tool for tracking and communicating progress 
against our commitments. It will help us 
advance our vision and demonstrate our 
efforts to innovate in the industry. To view our Scientific Advisory Board, visit  
www.valirx.com/about-us/scientific-advisory-board/
16
ValiRx plc
Annual Report and Accounts 2014 
Governance
BOARD OF DIRECTORS
Oliver de Giorgio‑Miller
Non-executive 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.
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).
Dr 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.
Our experienced Board of Directors 
comprises six dedicated members who  
are all well respected within their field. Strategic Report Governance Financial Statements
17
ValiRx plc
Annual Report and Accounts 2014 
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.
Directors
Oliver de Giorgio-Miller
Dr Satu Vainikka
Dr George Morris
Gerry Desler
Kevin Alexander
Seppo Mäkinen
Secretary
Kevin Alexander
Company number
03916791
Registered office
24 Greville Street
London
EC1N 8SS
Auditors
Adler Shine LLP
Chartered Accountants  
and Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF
Bankers
Royal Bank of Scotland Plc
St Ann Street
Manchester
M50 2SS
Solicitors
Pinsent Masons LLP
30 Crown Place
Earl Street
London 
EC2A 4ES
Company Information
Kevin Alexander
Non-executive Director
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 €200 million 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. 18
ValiRx plc
Annual Report and Accounts 2014 
Governance
DIRECTORS’ REPORT
For the year ended 31 December 2014
The Directors present their report and financial statements for the year ended 31 December 2014.
Results and dividends
The results for the year are set out on page 21.
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 £1,772,338 (2013: £1,622,383) on research and development. Further details on the Group’s research 
and development are included in the Chief Executive’s Report on pages 12 to 13.
Directors
The following Directors have held office since 1 January 2014:
Oliver de Giorgio-Miller
Dr Satu Vainikka
Dr George Morris
Gerry Desler
Kevin Alexander
Seppo Mäkinen
The market value of the Company’s shares at 31 December 2014 was 0.22 pence and the high and low share prices during the period were 0.50 pence and  
0.22 pence respectively.
Significant shareholders
As at 13 March 2015, so far as the Directors are aware, there are no parties who are directly or indirectly interested in 3% or more of the nominal value of the 
Company’s share capital.
Directors’ insurance
The Directors and officers of the Company are insured against any claims against them for any wrongful act in their capacity as a Director, officer or employee 
of the Group, subject to the terms and conditions of the policy.
Auditors
In accordance with Section 489 of the Companies Act 2006, a resolution proposing that Adler Shine LLP be reappointed as auditors of the Company will  
be put to the Annual General Meeting.
Directors’ responsibilities
The Directors are responsible for preparing the Strategic Report, the Directors’ Report and the financial statements in accordance with applicable law and 
regulations.
Company law requires the Directors to prepare financial statements for each financial year. 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. Strategic Report Governance Financial Statements
19
ValiRx plc
Annual Report and Accounts 2014 
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 20
ValiRx plc
Annual Report and Accounts 2014 
We have audited the Group and Parent Company financial statements (the “financial statements”) of ValiRx plc for the year ended 31 December 2014 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 18, the Directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in 
accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices 
Board’s (“APB”) Ethical Standards for Auditors.
   
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the  
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies 
are appropriate to the Group’s and Parent Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness  
of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all the financial  
and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information  
that is materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become  
aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
   
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and the Parent Company’s affairs as at 31 December 2014 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 
Chartered Accountants & Statutory Auditor 
Aston House 
Cornwall Avenue
London
N3 1LF
INDEPENDENT AUDITORS’ REPORT
to the members of ValiRx plc
Governance Strategic Report Governance Financial Statements
21
ValiRx plc
Annual Report and Accounts 2014 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2014
    2014 2013
   Notes £ £
Revenue   3 87,558  124,868 
Cost of sales    (61,025) (51,618)
Gross profit    26,533  73,250 
Research and development    (1,772,338) (1,622,383)
Administrative expenses    (1,603,128) (1,361,954)
Other operating income   4 210,802  – 
Operating loss   4 (3,138,131) (2,911,087)
Fair value loss on derivative financial assets   14 (72,202) – 
Finance income   5 8,023  5,552 
Loss on disposal of financial assets   11 (437,493) – 
Finance costs   6 (1,532) (180)
Loss on ordinary activities before taxation    (3,641,335) (2,905,715)
Income tax expense   7 396,864  308,477 
Loss on ordinary activities after taxation    (3,244,471) (2,597,238)
Non-controlling interest    84,440  – 
Loss for the year    (3,160,031) (2,597,238)
Other comprehensive income
Change in fair value of available-for-sale assets    –  (105,020)
Loss for the year and total comprehensive income    (3,160,031) (2,702,258)
   
Loss per share – basic and diluted   8  
From continuing operations    (0.08)p (0.15)p
   
There are no recognised gains and losses other than those passing through the Consolidated Statement of Comprehensive Income.
   
The notes on pages 25 to 46 form part of these statutory accounts.
 
Financial Statements 22
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2014
     Reverse Share Non
  Share  Share Merger acquisition option controlling Retained
  capital premium reserve reserve reserve interests earnings Total
 Notes £ £ £ £ £ £ £ £
Balance at 1 January 2013  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  307,750  692,437  –  –  –  –  –  1,000,187 
Costs in respect of shares issued  –  (104,358) –  –  –  –  –  (104,358)
Balance at 31 December 2013  6,359,357  5,925,231  637,500  602,413  73,852  –  (10,367,941) 3,230,412 
Changes in equity in 2014
Loss for the year  –  –  –  –  –  (84,440) (3,160,031) (3,244,471)
On acquisition of subsidiary  –  –  –  –  –  110,814  – 110,814 
Issue of shares 18 922,449  2,069,701  –  –  –  –  –  2,992,150 
Costs in respect of shares issued  –  (390,200) –  –  –  –  –  (390,200)
Movement in the year 17 –  –  –  –  89,324  –  –  89,324
Transfer between share option reserve  
and retained earnings  –  –  –  –  (9,032)  –  9,032  –
Balance at 31 December 2014  7,281,806  7,604,732  637,500  602,413  154,144  26,374  (13,518,940) 2,788,029 
     
Merger reserve
The merger reserve of £637,500 exists as a result of the acquisition of ValiRx Bioinnovation Limited. The merger reserve represents the difference between  
the nominal value of the share capital issued by the Company and the fair value of ValiRx Bioinnovation Limited at 3 October 2006, the date of acquisition.
     
Reverse acquisition reserve
The reverse acquisition reserve exists as a result of the method of accounting for the acquisition of ValiRx Bioinnovation Limited and ValiPharma Limited.
  Strategic Report Governance Financial Statements
23
ValiRx plc
Annual Report and Accounts 2014 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2014
   2014  2013
 Notes £ £ £ £
ASSETS
Non-current assets
Intangible assets 9  2,380,021   1,882,762 
Property, plant and equipment 10  1,507   685 
Financial assets: available-for-sale investments 11  –   768,323 
   2,381,528   2,651,770 
Current assets
Inventories 12 11,150   4,078  
Trade and other receivables 13 777,602   490,395  
Cash and cash equivalents  452,824   960,267  
   1,241,576   1,454,740 
LIABILITIES
Current liabilities
Trade and other payables 15  (835,075)  (876,098)
Net current assets   406,501   578,642 
Net assets   2,788,029   3,230,412 
SHAREHOLDERS’ EQUITY
Called up share capital 18  7,281,806   6,359,357 
Share premium    7,604,732   5,925,231 
Merger reserve   637,500   637,500 
Reverse acquisition reserve   602,413   602,413 
Share option reserve   154,144   73,852 
Profit and loss account   (13,518,940)  (10,367,941)
Total shareholders’ equity   2,761,655   3,230,412 
Non-controlling interests   26,374   – 
Total equity   2,788,029   3,230,412 
The notes on pages 25 to 46 form part of these statutory accounts.
    
Approved by the Board and authorised for issue on 15 April 2015.
Dr Satu Vainikka
Director
    
Company Registration No. 03916791 24
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2014
   2014  2013
  £ £ £ £
Net cash outflow from operating activities   (3,316,712)  (2,232,552)
Taxation   309,541   164,892 
Returns on investments and servicing of finance  
Interest received  8,023   5,552  
Interest paid  (1,532)  (180) 
Net cash inflow from returns on investments and servicing of finance   6,491   5,372 
Capital expenditure and financial investment
Payments to acquire intangible assets  (273,846)  (132,135) 
Payments to acquire tangible assets  (1,408)  (1,922) 
Receipts from sales of financial investments  330,830   –  
Net cash inflow/(outflow) for capital expenditure and financial investment   55,576   (134,057)
Acquisitions and disposals
Non-controlling interest  63   –  
Net cash outflow for acquisitions and disposals   63   – 
Financing
Issue of ordinary share capital  2,900,000   1,000,187  
Cost of share issue  (390,200)  (104,358) 
Cost of derivative financial asset  (1,500,000)  –  
Proceeds received from issue of derivative financial asset  1,427,798   –  
Net cash generated from financing activities   2,437,598   895,829 
Net decrease in cash and cash equivalents   (507,443)  (1,300,516)
Cash and cash equivalents at beginning of period   960,267   2,260,783 
Cash and cash equivalents at end of period   452,824   960,267 
  
The notes on pages 25 to 46 form part of these statutory accounts. Strategic Report Governance Financial Statements
25
ValiRx plc
Annual Report and Accounts 2014 
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2014
1 Cash flows from operating activities   
    2014 2013
    £ £
Operating loss    (3,138,131) (2,911,087)
Depreciation of tangible assets    517  5,623 
Amortisation of intangible assets    90,697  55,537 
Increase in inventories    (7,072) (1,351)
(Increase)/decrease in receivables    (199,884) 7,045 
(Decrease)/(increase) in payables within one year    (158,873) 614,463 
Other non-cash movements    6,710  (2,782)
Share option charge    89,324  – 
Cash outflows from operating activities    (3,316,712) (2,232,552)
2 Cash and cash equivalents
   Other
  1 January  non-cash  31 December
  2014 changes Cash flow 2014
  £ £ £ £
Net cash
Cash at bank and in hand  960,267  –  (507,443) 452,824 
  960,267  –  (507,443) 452,824  26
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2014
1 Principal accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below.
1.1 Basis of preparation
ValiRx plc is a company incorporated in the United Kingdom under the Companies Act 1985, which is listed on the AIM market of the London Stock 
Exchange Plc. The address of its registered office is 24 Greville Street, London EC1N 8SS.
The registered number of the Company is 03916791.
The Group financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union 
(“IFRSs”), International Financial Reporting Interpretations Committee (“IFRIC”) interpretations and the Companies Act 2006 applicable to companies 
reporting under IFRS.
The Group financial statements have been prepared under the historical cost convention or fair value where appropriate.
1.2 Going concern
The current economic environment is challenging and the Group have reported an operating loss for the year. These losses will continue in the current 
accounting year to 31 December 2015.
The Company carries out regular fund-raising exercises in order that it can provide the necessary working capital for the Group. Further funds will be 
required to finance the Group’s work programme. As detailed in note 24, since the year end, the Group has raised £1.6 million before expenses through  
two issues of new Ordinary Shares.
The board expects to continue to raise additional funding as and when required to cover the Group’s development, primarily from the issue of  
further shares. 
As such the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the 
foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
1.3 Basis of consolidation
The Group financial statements consolidate the financial statements of the Company and all its subsidiaries (“the Group”). Subsidiaries include all entities 
over which the Group has the power to govern financial and operating policies. The existence and effect of potential voting rights that are currently 
exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are consolidated from the date on  
which control commences until the date that control ceases. Intra-group balances and any unrealised gains and losses on income or expenses arising  
from intra-group transactions, are eliminated in preparing the consolidated financial statements.
On 3 October 2006, ValiRx Bioinnovation Limited (“Bioinnovation”) acquired 60.28% of the issued share capital of ValiPharma Limited (“ValiPharma”) in 
exchange for shares in Bioinnovation. Concurrently, the Company, (“ValiRx”), acquired the entire issued share capital of Bioinnovation in a share for share 
transaction. As a result of these transactions, the former shareholders of ValiPharma became the majority shareholders in ValiRx. Accordingly, the substance 
of the transaction was that ValiPharma acquired ValiRx in a reverse acquisition. Under IFRS 3 “Business Combinations” , the acquisition of ValiPharma has been 
accounted for as a reverse acquisition.
In May 2008 the Company acquired the remaining 39.72% of the issued share capital of ValiPharma, which is now wholly owned by the Group. This acquisition 
was accounted for using the acquisition method of accounting.
In August 2011, the Company acquired for a nominal amount, the outstanding equity of a Finnish non-trading company – ValiRx Finland OY (“ValiFinn”) –  
that it had jointly established with local partners in 2008. As a result of the acquisition, ValiFinn has become a wholly owned subsidiary of the Company.
In November 2013 ValiSeek Limited was formed to enable the Company to entered into a joint venture agreement. The Company has a 55.5% holding  
in the issued share capital of ValiSeek.
The assets and liabilities of the Group’s foreign operations are expressed in pounds sterling using exchange rates prevailing at the balance sheet date.  
Income and expense items are translated at the average exchange rate for the period. Material exchange differences arising are classified as equity.  
The translation differences are recognised in the period in which the foreign operation is disposed of.
Intra-group transactions, profits and balances are eliminated in full on consolidation.
 
1.4 Goodwill
Goodwill on acquisition of subsidiaries represents the excess of the cost of acquisition over the fair value of the Group’s share of the net identifiable net 
assets and contingent liabilities acquired. Identifiable assets are those which can be sold separately or which arise from legal rights regardless of whether 
those rights are separable. Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but is tested annually, or when 
trigger events occur, for impairment and is carried at cost less accumulated impairment losses. Strategic Report Governance Financial Statements
27
ValiRx plc
Annual Report and Accounts 2014 
1 Principal accounting policies continued
1.5 Other intangible assets
Acquired licences, trademarks and patents are capitalised at cost and are amortised on a straight-line basis over their useful life. Patents are amortised over  
16 years and licences over 16 to 20 years.
Acquired brands are written off in equal annual instalments over their useful economic life, which the Directors estimate to be 15 years. However, following 
the cancellation of ValiMedix Limited’s distribution agreement and the cessation of the Company’s trade, the directors carried out a review of the carrying 
value of brands, as a consequence of which the value has been fully impaired. This has resulted in an amortisation charge of £9,603 in excess of the normal 
annual charge of £996.
1.6 Research and development
Research expenditure is recognised as an expense and is charged to the income statement in the year in which it is incurred.
Development expenditure is recognised as an expense in the same way unless it meets the recognition criteria of IAS 38 “Intangible Assets” . Regulatory 
and other uncertainties generally mean that such criteria are not met. Where, however, the recognition criteria are met, intangible assets are capitalised and 
amortised over their useful economic lives from product launch.
1.7 Property, plant and equipment
Property, plant and equipment are stated at cost less depreciation.
Depreciation is provided at the following rates per annum to write off the cost of property, plant and equipment, less estimated residual value, on a straight 
line basis from the date on which they are brought into use:
Plant and machinery 33% per annum straight line
Computer equipment 33% per annum straight line
1.8 Impairment of assets
The carrying value of property, plant and equipment and intangibles is reviewed for impairment when events or changes in circumstances indicate the 
carrying value may be impaired. An impairment loss is recognised in the income statement for the amount by which the asset’s carrying amount exceeds  
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
1.9 Inventories
Inventories are valued at the lower of cost and net realisable value.
1.10 Financial assets
The Company classifies its financial assets in the following categories:
• financial assets at fair value through profit or loss; 
• loans and receivables;
• held-to-maturity investments; and 
• available-for-sale financial assets.
Management determines the classification of its investments at initial recognition.
1.11 Loans and receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The principal financial  
assets of the Company are loans and receivables, which arise principally through the provision of goods and services to customers (e.g. trade receivables)  
but also incorporate other types of contractual monetary asset. They are included in current assets, except for maturities greater than twelve months  
after the balance sheet date. These are classified as non-current assets.
The Group’s loans and receivables are recognised and carried at the lower of their original amount less an allowance for any doubtful amounts. An allowance 
is made when collection of the full amount is no longer considered possible.
The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents in the Consolidated Statement of Financial Position.
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.
1.12 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. 28
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2014
1 Principal accounting policies continued
1.13 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.
1.14 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.
1.15 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.
1.16 Taxation
The taxation charge represents the sum of current tax and deferred tax.
The tax currently payable is based on the taxable profit for the period using the tax rates that have been enacted or substantially enacted by the balance 
sheet date. Taxable profit differs from the net profit as reported in the income statement because it excludes items of income or expense that are taxable  
or deductible in other years and it further excludes items that are never taxable or deductible.
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the Group financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted at the balance sheet 
date and are expected to apply when the related deferred income tax asset is realised of the deferred tax liability is settled.
Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available against which the asset can be utilised.
Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited to equity, in which case the deferred tax  
is also dealt with in equity.
1.17 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.
1.18 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.
1.19 Revenue recognition
Revenue represents sales and services to third party customers in the health sector, stated net of any applicable value added tax. Revenue is recognised 
when the goods and services have been provided.
1.20 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. Strategic Report Governance Financial Statements
29
ValiRx plc
Annual Report and Accounts 2014 
1 Principal accounting policies continued
1.21 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 and IAS 28  Consolidated financial statements – sale or contribution of assets between an investor and its associates or  
joint venture (amendment)
IFRS 10 and IAS 28 Consolidated financial statements – application of consolidation exception
IFRS 11 Joint arrangements – accounting for acquisitions of an interest in a joint operation (amendment)
IFRS 12 Disclosure of interests in other entities – application of the consolidation exception (amendment)
IFRS 14 Regulatory deferred accounts
IFRS 15 Revenue from contracts with customers
IFRS 2, 3, 8, IAS 16, 24, 38 Annual improvements 2010 to 2012 cycle
IFRS 1, 3, 13 IAS 40 Annual improvements 2011 to 2013 cycle
IFRS 5, 7, IAS 19, 34 Annual improvements 2014
IAS 1 Presentation of financial statements – disclosure initiative (amendment)
IAS 19 Defined benefit plans: Employee contributions (amendment)
IAS 27 Separate financial statements – use of equity accounting method for investments (amendment)
IAS 38 Intangible assets – acceptable methods of depreciation and amortisation (amendment)
IAS 39 Novation of derivatives and continuation of hedge accounting (amendment)
IAS 41 Agriculture – bearer plants
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:
Goodwill impairment
The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. Determining whether goodwill is impaired requires  
an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the Directors  
to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate the present value.
Share-based payments
The estimates of share-based payments costs require that management selects an appropriate valuation model and makes decisions on various inputs  
into the model, including the volatility of its own share price, the probable life of the options before exercise, and behavioural consideration of employees.
Deferred tax assets
Deferred taxation is provided for using the liability method. Deferred tax assets are recognised in respect of tax losses where the Directors believe that it is 
probable that future profits will be relieved by the benefit of tax losses brought forward. The Board considers the likely utilisation of such losses by reviewing 
budgets and medium-term plans for each taxable entity within the Group. If the actual profits earned by the Group’s taxable entities differ from the budgets 
and forecasts used then the value of such deferred tax assets may differ from that shown in these financial statements. 30
ValiRx plc
Annual Report and Accounts 2014 
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.
    2014 2013
Class of business    £ £
Revenue
Diagnostics    87,558  124,868 
Loss before taxation
Drug development    (3,368,720) (2,726,580)
Diagnostics    (263,583) (179,135)
    (3,641,335) (2,905,715)
Net assets
Drug development    2,680,889  3,088,448 
Diagnostics    107,140  141,964 
    2,788,029  3,230,412 
    2014 2013
Geographical market    £ £
Revenue
UK    2,935  3,011 
Europe    84,623  121,857 
    87,558  124,868 
Loss before taxation
UK    (3,393,070) (2,734,689)
Europe    (239,233) (171,026)
    (3,641,335) (2,905,715)
Net assets
UK    2,682,266  3,104,591 
Europe    105,763  125,821 
    2,788,029  3,230,412 
4 Operating loss
    2014 2013
    £ £
Operating loss is stated after charging
Amortisation of intangible assets    90,697  55,537 
Depreciation of tangible assets    
and after crediting    517  5,623
Government grants    210,802  – 
Auditors’ remuneration
Fees payable to Company auditors for the audit of the Company and consolidated accounts   14,000  14,000 
– The audit of Company’s subsidiaries pursuant to legislation    13,000  11,000 
– Auditor’s fees for review of interim accounts    1,270  1,270 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2014 Strategic Report Governance Financial Statements
31
ValiRx plc
Annual Report and Accounts 2014 
5 Finance income
    2014 2013
    £ £
Bank interest    8,023  5,552 
6 Finance costs  
    2014 2013
    £ £
On bank loans and overdrafts    1,532  180 
7 Taxation
    2014 2013
    £ £
Domestic current year tax
Tax credits on research and development – current year    (396,864) (309,541)
Foreign corporation tax
Foreign corporation tax    –  127 
Current tax charge    (396,864) (309,414)
Factors affecting the tax charge for the year
Loss on ordinary activities before taxation    (3,641,335) (3,024,628)
Loss on ordinary activities before taxation multiplied by effective rate of UK corporation tax of 21.50% (2013: 23.25%)  (782,887) (703,226)
Effects of
Non deductible expenses    57,259  822 
Capital allowances for the year in deficit/(excess) of depreciation and amortisation    2,036  (1,820)
Tax losses not utilised    351,451  425,248 
Research and development expenditure    (122,099) (30,264)
Other tax adjustments    97,376  – 
    386,023  393,986 
Current tax charge    (396,864) (309,414)
No corporation tax arises on the results for the year ended 31 December 2014 due to the losses incurred for tax purposes.
The deferred tax asset, arising from tax losses of £9,300,000 (2013: £7,785,000) 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:
    2014 2013
Basic
Loss for the financial period    (3,160,031) (2,597,238)
Weighted average number of shares    3,854,730,440  1,733,106,298 
Loss per share    (0.08)p (0.15)p
There was no dilutive effect from the share options outstanding during the year (note 17).
Following the issue of 400,000,000 Ordinary Shares of 0.1 pence each in January 2015, and a further 400,000,000 and 30,769,231 Ordinary Shares of 0.1 pence 
each in March 2015, the number of allotted Ordinary Shares of 0.1 pence each in issue was 3,772,151,745. 32
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
9 Intangible fixed assets
    Brands and
  Patents Goodwill licences Total
  £ £ £ £
Cost
At 1 January 2013  651,865  1,177,592  115,000  1,944,457 
Additions  132,135  –  –  132,135 
Exchange differences  2,802  –  –  2,802 
At 31 December 2013  786,802  1,177,592  115,000  2,079,394 
Exchange differences  (8,795) –  –  (8,795)
Additions  223,846  110,751  260,000  594,597 
Impairment  –  –  –  – 
At 31 December 2014  1,001,853  1,288,343  375,000  2,665,196 
Amortisation
At 1 January 2013  122,647  –  18,405  141,052 
Exchange differences  43  –  –  43 
Impairment on disposals  –  –  –  – 
Charge for the year  49,541  –  5,996  55,537 
At 31 December 2013  172,231  –  24,401  196,632 
Exchange differences  (2,154) –  –  (2,154)
Charge for the year  60,098  –  30,599  90,697 
At 31 December 2014  230,175  –  55,000  285,175 
Net book value
At 31 December 2014  771,678  1,288,343  320,000  2,380,021 
At 31 December 2013  614,571  1,177,592  90,599  1,882,762 
The goodwill arising on the acquisitions of ValiRx Bioinnovation Limited, ValiPharma Limited, ValiRx Finland OY and ValiSeek Limited is not being amortised 
but will be reviewed on an annual basis for impairment, or more frequently if there are indications that goodwill might be impaired. The impairment review 
comprises a comparison of the carrying amount of the goodwill with its recoverable amount (the higher of fair value less costs to sell and value in use).  
ValiRx plc has used the value in use method, applying a 15% discount rate.
Goodwill per cash generating unit:     £
Valipharma Limited     772,229 
ValiRx Bioinnovations Limited     394,613 
ValiMedix Limited     – 
ValiRx Finland OY     10,750 
ValiSeek Limited     110,751 
Sensitivity analysis is not required as a reasonably possible change in assumptions would not result in an impairment.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2014 Strategic Report Governance Financial Statements
33
ValiRx plc
Annual Report and Accounts 2014 
10 Property, plant and equipment
     Plant and 
     machinery
     £
Cost
At 1 January 2013     24,521 
Exchange differences     24 
Additions     1,922 
At 31 December 2013     26,467 
Exchange differences     (117)
Additions     1,408 
At 31 December 2014     27,758 
Depreciation
At 1 January 2013     20,158 
Exchange difference     1 
Charge for the period     5,623 
At 31 December 2013     25,782 
Exchange differences     (48)
Charge for the year     517 
At 31 December 2014     26,251 
Net book value
At 31 December 2014     1,507 
At 31 December 2013     685 
11 Financial assets – available-for-sale investments
   Listed  Unlisted
   investments investments Total
   £ £ £
Cost and valuation
At 1 January 2014   768,323  1,333,770  2,102,093 
Disposals   (768,323) –  (768,323)
At 31 December 2014   –  1,333,770  1,333,770 
Provisions for diminution in value
At 1 January 2014 and at 31 December 2014   –  1,333,770  1,333,770 
Net book value
At 31 December 2014   –  –  – 
At 31 December 2013   768,323  –  768,323 
The Group owns 5.5% (2013: 5.5%) (on a fully diluted basis) of the issued share capital of Morphogenesis Inc., a company incorporated in USA. Morphogenesis 
Inc. is a private company in which ValiRx plc holds a minority interest.
In January 2014, the Company disposed of its investment in VolitionRx Limited, receiving gross sales proceeds of US$601,578 (£361,323). 34
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
12 Inventories
    2014 2013
    £ £
Finished goods and goods for resale    11,150  4,078 
13 Trade and other receivables 
    2014 2013
    £ £
Trade receivables    18,078  8,398 
Tax recoverable    396,864  309,541 
Called up share capital not paid    73  40 
Other receivables    219,857  145,317 
Prepayments and accrued income    142,730  27,099 
    777,602  490,395 
Amounts falling due after more than one year and included in the receivables above are:
    2014 2013
    £ £
Other receivables    14,638  – 
In the Directors’ opinion the carrying amount of receivables is considered a reasonable approximation of fair value.
14 Derivative financial assets
In December 2013, the Company issued 800 million new Ordinary Shares of 0.1 pence per share at a price of 0.325 pence (“Benchmark Price”) per share to 
YA Global Master SPV Limited (“Yorkville”) with a notional value of £2.6 million. The Company entered into an equity swap price mechanism with Yorkville for 
753,846,154 of these shares for £1.5 million of that amount. Yorkville hedged the consideration they pay for shares in the Company against the performance 
of the Company’s share price over an 18 month period. All 800 million shares were allotted with full rights on the date of the transaction.
At each swap settlement, the Company would receive greater or lower consideration calculated on pro-rata basis depending on whether the applicable 
Market Price for the previous month was greater or less than the Benchmark Price.
As the amount of the consideration receivable by the Company from Yorkville would vary subject to the change in the Company’s share price and would  
be settled in the future, the receivable was treated as a derivative financial asset and has been designated at fair value through profit or loss.
In October 2014, the equity swap agreement was exercised in full by agreement between the parties. The Company received back £1,427,798 of the amount 
swapped with Yorkville.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2014 Strategic Report Governance Financial Statements
35
ValiRx plc
Annual Report and Accounts 2014 
15 Trade and other payables
    2014 2013
    £ £
Trade payables    514,200  742,783 
Taxes and social security costs    25,076  14,111 
Other payables    4,732  – 
Accruals and deferred income    291,067  119,204 
    835,075  876,098 
In the Directors’ opinion the carrying amount of payables is considered a reasonable approximation of fair value.
16 Retirement benefits
The Group operate defined contribution pension schemes. The assets of the schemes are held separately from those of the Group in independently 
administered funds. The pension cost charge represents contributions payable by the Group to the funds.
Defined contribution
    2014 2013
    £ £
Contributions payable by the Company for the year    47,019  49,596 
17 Share-based payments
At 31 December 2014 outstanding awards to subscribe for Ordinary Shares of 0.1 pence each in the Company, granted in accordance with the rules of the 
ValiRx share option schemes, were as follows:
    Weighted  Weighted
    average  average
    remaining exercise 
    contractual life  price
   2013  (years)  (pence)
Brought forward   45,880,000  –  0.86
Granted   –  –  – 
Lapsed   –  –  – 
Carried forward   45,880,000  7.45 0.86
    Weighted  Weighted
    average  average
    remaining exercise 
    contractual life  price
   2014 (years)  (pence)
Brought forward   45,880,000  –  0.87
Granted   282,000,000  –  0.35
Lapsed   (6,400,000) –  (0.77)
Carried forward   321,480,000  9.08 0.42
All options were exercisable at the year end. 36
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
17 Share-based payments continued
The fair value of the remaining share options has been calculated using the Black-Scholes model. The assumptions used in the calculation of the fair value  
of the share options outstanding during the year are as follows:
 Share options Share options Share options Share options Share options
Grant date 23 November 2007 17 September 2009 8 July 2011 19 January 2014 21 October 2014
Exercise period November 2007 –  September 2009 – July 2011 – January 2014 – October 2014 –
 November 2017 September 2019 July 2021 January 2024 October 2024
Share price at date of grant 10.5p 2.1p 0.64p 0.345p 0.36p
Exercise price 10.5p 1.0p 0.75p 0.345p 0.355pp
Shares under option 430,000  2,550,000  36,500,000  133,000,000  149,000,000 
Expected volatility 35% 40% 52% 17% 17%
Expected life (years) 3.5 4 .0 3.0 3.0 3.0
Risk-free rate 4.36% 2.50% 1.24% 0.99% 1.00%
Expected dividend yield 0.00% 0.00% 0.00% 0.00% 0.00%
Fair value per option 1.55p 0.72p 0.10p 0.04p 0.03p
Volatility was determined by reference to the standard deviation of expected share price returns based on a statistical analysis of daily share prices over a 3 
year period to grant date. All of the above options are equity settled and the charge for the year is £89,324 (2013: £nil).
18 Share capital
  2014 2013 2014 2013
  Number Number £ £
Allotted, called up and fully paid
Ordinary Shares of 0.1p each  2,941,382,514  2,018,934,009  2,941,383  2,018,934 
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 
    7,281,806  6,359,357 
On 2 January 2014, the Company raised £2,600,000 before fees and expenses by way of a Placing of 800,000,000 new Ordinary Shares of 0.1 pence each at  
0.325 pence per share. Consideration was satisfied by the issue of a derivative financial instrument (note 14).
On 16 January 2014, the Company raised £300,000 before fees and expenses by way of a Placing of 92,307,692 new Ordinary Shares of 0.1 pence each at  
0.325 pence per share.
On 21 January 2014, the Company issued 9,801,829 new Ordinary Shares of 0.1 pence each at a price of 0.328 pence per share, in settlement of £32,150 
services provided to the Company.
On 11 April 2014, the Company issued 20,338,984 new Ordinary Shares of 0.1 pence each at a price of 0.295 pence per share as part of the initial 
consideration for the purchase of its 60% shareholding in ValiSeek Limited (note 9).
The deferred shares have no rights to vote, attend or speak at general meetings of the Company or to receive any dividend or other distribution and  
have limited rights to participate in any return of capital on a winding-up or liquidation of the Company.
19 Financial commitments
At 31 December 2014 the Company was committed to making the following payments under non-cancellable operating leases in the year  
to 31 December 2015:
     Land and buildings
    2014 2013
    £ £
Operating leases which expire
Within one year    27,000  27,000 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2014 Strategic Report Governance Financial Statements
37
ValiRx plc
Annual Report and Accounts 2014 
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.
    2014 2013
    £ £
Salaries and other short-term employee benefits    366,125  486,538 
Post-employment benefits    23,796  23,796 
Compensation for loss of office    –  18,000 
    389,921  528,334 
  Salary, Post- 
  bonus  employment
  and fees benefits 2014 2013
Salaries and fees  £ £ £ £
Dr Satu Vainikka  150,000  8,796  158,796  191,296 
Dr George Morris  88,000  15,000  103,000  133,000 
Kevin Alexander  25,000  –  25,000  40,000 
Gerry Desler  54,125  –  54,125  74,000 
Oliver de Giorgio-Miller  24,000  –  24,000  39,000 
Seppo Mäkinen (appointed 4 October 2013)  25,000  –  25,000  6,250 
Nicholas Thorniley (resigned 4 October 2013)  –  –  –  44,788 
  366,125  23,796  389,921  528,334 
The number of Directors for whom retirement benefits are accruing under money purchase pension schemes amounted to 2 (2013: 2).
The Directors interests in share options as at 31 December 2014 are as follows:
 Options at 
 31 December  Exercise Date of First date Final date
Director 2014 price grant of exercise of exercise
Dr Satu Vainikka 1,000,000  1.00p 17.09.09 17.09.13 17.09.19
Dr Satu Vainikka 10,000,000  0.75p 08.07.11 08.07.11 08.07.21
Dr Satu Vainikka 24,000,000  0.345p 19.01.14 19.01.14 19.01.24
Dr Satu Vainikka 24,000,000  0.36p 21.10.14 21.10.14 21.10.24
Dr George Morris 750,000  1.00p 17.09.09 17.09.13 17.09.19
Dr George Morris 6,000,000  0.75p 08.07.11 08.07.11 08.07.21
Dr George Morris 22,000,000  0.345p 19.01.14 19.01.14 19.01.24
Dr George Morris 22,000,000  0.36p 21.10.14 21.10.14 21.10.24
Kevin Alexander 400,000  1.00p 17.09.09 17.09.13 17.09.19
Kevin Alexander 6,000,000  0.75p 08.07.11 08.07.11 08.07.21
Kevin Alexander 20,000,000  0.345p 19.01.14 19.01.14 19.01.24
Kevin Alexander 20,000,000  0.36p 21.10.14 21.10.14 21.10.24
Gerry Desler 130,000  10.50p 23.11.07 23.05.09 23.11.17
Gerry Desler 400,000  1.00p 17.09.09 17.09.13 17.09.19
Gerry Desler 6,000,000  0.75p 08.07.11 08.07.11 08.07.21
Gerry Desler 22,000,000  0.345p 19.01.14 19.01.14 19.01.24
Gerry Desler 22,000,000  0.36p 21.10.14 21.10.14 21.10.24
Oliver de Giorgio-Miller 3,000,000  0.75p 08.07.11 08.07.11 08.07.21
Oliver de Giorgio-Miller 20,000,000  0.345p 19.01.14 19.01.14 19.01.24
Oliver de Giorgio-Miller 20,000,000  0.36p 21.10.14 21.10.14 21.10.24
Seppo Mäkinen 8,000,000  0.345p 19.01.14 19.01.14 19.01.24
Seppo Mäkinen 20,000,000  0.36p 21.10.14 21.10.14 21.10.24 38
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
21 Staff costs
Number of employees
The average monthly number of employees (including Directors) during the year was:
    2014 2013
    Number Number
Directors    6  6 
Staff    6  3 
    12  9 
Employment costs 
    2014 2013
    £ £
Wages and salaries    660,771  718,253 
Social security costs    59,855  49,095 
Other pension costs    47,019  49,596 
Costs of share option scheme    89,324  – 
    856,969  816,944 
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 £12,500 (2013: £9,000) and similar services to  
ValiRx Finland Oy totalling £12,577 (2013: £nil).
During the year the Director, Oliver de Giorgio-Miller, invoiced the Company £49,500 (2013: £24,750) for research and development work.
During the year the Director, Kevin Alexander, provided the Company with legal services totalling £nil (2013: £9,199).
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:
    2014 2013
    £ £
Gerry Desler    –  18,109 
Oliver de Giorgio-Miller    –  15,000 
Dr George Morris    –  – 
Dr Satu Vainikka    2,975  – 
Kevin Alexander    –  – 
Seppo Mäkinen    –  – 
24 Post balance sheet events
In January 2015, the Company raised £800,000, before expenses, through the issue of 400 million new Ordinary Shares of 0.1 pence each at 0.20 pence per 
share. The net proceeds of this fundraising will be used for future oncology development work and for general working capital purposes.
In March 2015, the Company raised £800,000, before expenses, through the issue of 400 million new Ordinary Shares of 0.1 pence each at 0.20 pence per 
share. The net proceeds of this fundraising will be used for future oncology development work and for general working capital purposes.
In February 2015, the Company, through its wholly owned subsidiary ValiRx Finland OY, acquired the assets and intellectual property rights of the Finnish 
gene expression and biomarker technology “Transcript Analysis with the Aid of Affinity Capture” for a consideration and payment of €76,400 in cash.
In March 2015, the Company issued 30,769,231 Ordinary Shares of 0.1 pence each to Cancer Research Technology Limited at a price of 0.26 pence per share 
in lieu of an £80,000 milestone payment.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2014 Strategic Report Governance Financial Statements
39
ValiRx plc
Annual Report and Accounts 2014 
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 2014   –  –  – 
At 31 December 2013   768,323  –  – 
    2014 2013
Financial assets    £ £
Available-for-sale investments    –  768,323 
Loans and receivables
Trade and other receivables    777,602  490,395 
Cash and cash equivalents    452,824  960,267 
Total loans and receivables    1,230,426  1,450,662 
Total financial assets    1,230,426  2,218,985 
    2014 2013
Financial liabilities    £ £
Trade and other payables    835,075  876,098 
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.
Financial risk management
The Group’s activities expose it to a variety of risks, including market risk (foreign currency risk and interest rate risk), credit risk and liquidity risk. The Group 
manages these risks through an effective risk management programme and, through this programme, the Board seeks to minimise potential adverse effects 
on the Group’s financial performance.
The Board provides written objectives, policies and procedures with regards to managing currency and interest risk exposures, liquidity and credit risk 
including guidance on the use of certain derivative and non-derivative financial instruments
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s 
credit risk is primarily attributable to its receivables and its cash deposits. It is Group policy to assess the credit risk of new customers before entering contracts. 
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Liquidity risk and interest rate risk
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations 
as they fall due. The Board regularly receives cash flow projections for a minimum period of twelve months, together with information regarding cash 
balances monthly.
The Group is principally funded by equity and invests in short-term deposits, having access to these funds at short notice. The Group’s policy throughout the 
period has been to minimise interest rate risk by placing funds in risk free cash deposits but also to maximise the return on funds placed on deposit.
All cash deposits attract a floating rate of interest. The benchmark rate for determining interest receivable and floating rate assets is linked to the UK base rate.
Foreign currency risk
The Group has an entity which operates in Europe and is therefore exposed to foreign exchange risk arising from currency exposure to the Euro, the functional 
currency of that subsidiary. The overseas subsidiary operates a separate bank account that is used solely for that subsidiary, thus managing the currency in  
that country. The Group’s net assets arising from the overseas subsidiary are exposed to currency risk resulting in gains or losses on retranslation into Sterling. 
Given the levels of materiality, the Group does not hedge its net investments in overseas operations as the cost of doing so is disproportionate to the exposure. 40
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
COMPANY BALANCE SHEET
as at 31 December 2014
 Notes  2014  2013
  £ £ £ £
Fixed assets 
Intangible assets 2  170,000  80,000
Investments 4  3,128,532  3,577,432
   3,298,532  3,657,432
Current assets
Debtors 5 1,822,376  1,810,454 
Cash at bank and in hand  433,232  952,457 
  2,255,608  2,762,911
Creditors: amounts falling due within one year 6 (936,034)  (1,121,117) 
Net current assets   1,319,574  1,641,794
Total assets less current liabilities   4,618,106  5,299,226 
Capital and reserves
Called up share capital 9  7,281,806   6,359,357
Share premium account 10  7,604,732  5,925,231
Merger reserves 10  637,500  637,500
Share option reserve 10  154,144  73,852
Profit and loss account 10  (11,060,076)  (7,696,714)
Shareholders’ funds 11  4,618,106   5,299,226 
Approved by the Board and authorised for issue on 15 April 2015.
Dr Satu Vainikka
Director
Company Registration No. 3916791 Strategic Report Governance Financial Statements
41
ValiRx plc
Annual Report and Accounts 2014 
NOTES TO THE COMPANY FINANCIAL STATEMENTS
for the year ended 31 December 2014
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 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.
1.4 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
1.5 Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.6 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.
1.7 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.
1.8 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.
1.9 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 £3,372,394 is attributable to shareholders for the financial year ended 31 December 2014 (2013: £2,520,066).
1.10 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.
1.11 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. 42
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
NOTES TO THE COMPANY FINANCIAL STATEMENTS continued
for the year ended 31 December 2014
2 Intangible fixed assets
     Development Costs
     £
Cost
At 1 January 2014     100,000 
Additions      100,000
At 31 December 2014      200,000
Amortisation
At 1 January 2014     20,000
Charge for the year     10,000 
At 31 December 2014     30,000 
Net book value
At 31 December 2014     170,000 
At 31 December 2013     80,000
3 Tangible fixed assets
     Computer equipment
     £
Cost
At 1 January 2014 & at 31 December 2014      21,755 
Depreciation
At 1 January 2014 & at 31 December 2014     21,755 
Net book value
At 31 December 2014     – 
At 31 December 2013     –
4 Fixed asset investments
   Shares in  
   subsidiary Listed   
   undertakings investments Total
   £ £ £
Cost
At 1 January 2014   2,865,894 711,538 3,577,432 
Additions   262,638  – 262,638 
Disposals   – (711,538) (711,538)
At 31 December 2014   3,128,532  –  3,128,532
Net book value
At 31 December 2014   3,128,532  –  3,128,532 
At 31 December 2013   2,865,894  711,538  3,577,432 
The principal subsidiary undertakings of the Company are as follows:
 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
ValiMedix Limited England and Wales 100.00 Medical diagnostics company
ValiRx Finland OY Finland 100.00 Therapeutic research and development
ValiSeek Limited England and Wales 55.50 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 2014 was £nil (2013: £768,323). Strategic Report Governance Financial Statements
43
ValiRx plc
Annual Report and Accounts 2014 
5 Debtors
    2014 2013
    £ £
Amounts owed by subsidiary undertakings    1,140,139 1,347,734
Tax recoverable    370,240 309,541
Other debtors    169,267 130,401
Prepayments and accrued income    142,730 22,778
    1,822,376 1,810,454
Amounts falling due after more than one year and included in the debtors above are:
    2014 2013
    £ £
Other debtors    14,638  –
6 Creditors: amounts falling due within one year
    2014 2013
    £ £
Trade creditors    379,950  706,175 
Amounts owed to subsidiary undertakings    320,670 300,670
Taxes and social security costs    15,147 11,572
Other creditors    4,732 –
Accruals and deferred income    215,535  102,700 
Current tax charge    936,034  1,121,117 
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.
    2014 2013
    £ £
Contributions payable by the Company for the year    23,796  23,796  44
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
8 Share-based payments
At 31 December 2014 outstanding awards to subscribe for Ordinary Shares of 0.1 pence each in the Company, granted in accordance with the rules of the 
ValiRx share option schemes, were as follows:
    Weighted  
    average Weighted
    remaining average
    contractual life exercise
   2013 (years) price (pence)
Brought forward   45,880,000  – 0.86
Granted   – – –
Lapsed   – – –
Carried forward   45,880,000  7.45 0.86
    Weighted  
    average Weighted
    remaining average
    contractual life exercise
   2014 (years) price (pence)
Brought forward   45,880,000 – 0.87
Granted   282,000,000 – 0.35
Lapsed   (6,400,000) – (0.77)
Carried forward   321,480,000  9.08 0.42
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 Share options Share options
Grant date  23 November 2007 17 September 2009  8 July 2011 19 January 2014 21 October 2014
Exercise period  November 2007 – September 2009 – July 2011 – January 2014 – October 2014 –
   November 2017  September 2019  July 2021 January 2024 October 2024
Share price at date of grant 10.5p 2.1p 0.64p 0.345p 0.36p
Exercise price  10.5p 1p 0.75p 0.345p 0.36p
Shares under option  430,000  2,550,000  36,500,000  133,000,000  149,000,000
Expected volatility  35% 40% 52% 40% 52%
Expected life (years)  3.5 4.0 3.0 3.0 3.0
Risk-free rate  4.36% 2.50% 1.24% 0.99% 1.00%
Expected dividend yield 0.00% 0.00% 0.00% 0.00% 0.00%
Fair value per option  1.55p 0.72p 0.10p 0.04p 0.03p
Volatility was determined by reference to the standard deviation of expected share price returns based on a statistical analysis of daily share prices over  
a 3 year period to grant date. All of the above options are equity settled and the charge for the year is £89,324 (2013: £nil).
NOTES TO THE COMPANY FINANCIAL STATEMENTS continued
for the year ended 31 December 2014 Strategic Report Governance Financial Statements
45
ValiRx plc
Annual Report and Accounts 2014 
9 Share capital
  2014 2013 2014 2013
  Number Number £ £
Allotted, called up and fully paid
Ordinary Shares of 0.1p each  2,941,382,514  2,018,934,009  2,941,383  2,018,934 
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
    7,281,806 6,359,357
On 2 January 2014, the Company raised £2,600,000 before fees and expenses by way of a Placing of 800,000,000 new Ordinary Shares of 0.1 pence each at 
0.325 pence per share. Consideration was satisfied by the issue of a derivative financial instrument (note 14: group accounts).
On 16 January 2014, the Company raised £300,000 before fees and expenses by way of a Placing of 92,307,692 new Ordinary Shares of 0.1 pence each at  
0.325 pence per share.
On 21 January 2014, the Company issued 9,801,829 new Ordinary Shares of 0.1 pence each at a price of 0.328 pence per share, in settlement of £32,150 
services provided to the Company.
On 11 April 2014, the Company issued 20,338,984 new Ordinary Shares of 0.1 pence each at a price of 0.295 pence per share as part of the initial  
consideration for the purchase of its 60% shareholding in ValiSeek Limited.
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 Other  Profit and
   premium reserves loss
   account (see below) account
   £ £ £
Balance at 1 January 2014   5,925,231  711,352  (7,696,714)
Loss for the year   – –  (3,372,394)
Transfer from share option reserve to profit and loss account   –  (9,032)  9,032 
Premium on shares issued during the year   2,069,701  –  –
Share premium – other movements   (390,200) –  –
Movement during the year   –  89,324  –
Balance at 31 December 2014   7,604,732 791,644  (11,060,076)
Share option reserve
Balance at 1 January 2014    73,852
Share option reserve movement    80,292  
Balance at 31 December 2014    154,144 
Merger reserve
Balance at 1 January 2014 and at 31 December 2014    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. 46
ValiRx plc
Annual Report and Accounts 2014 
Financial Statements
11 Reconciliation of movements in shareholders’ funds
    2014 2013
    £ £
Loss for the financial year    (3,372,394) (2,520,066)
Shares issued    2,992,150  1,000,187
Cost of share issue written off to share premium account    (390,200) (104,358)
Transfer from share option reserve to profit and loss account    9,032  –
Other reserves movement    80,292  – 
Net depletion in shareholders’ funds    (681,120) (1,624,237)
Opening shareholders’ funds    5,299,226  6,923,463
Closing shareholders’ funds    4,618,106  5,299,226
12 Related party transactions
During the year the Director, Gerry Desler, provided the Company with bookkeeping services totalling £12,500 (2013: £9,000).
During the year the Director, Oliver de Giorgio-Miller, invoiced the Company £49,500 (2013: £24,750) for research and development work.
During the year the Director, Kevin Alexander, provided the Company with legal services totalling £nil (2013: £9,199).
At the year end, the amounts owed to Directors included in trade creditors were as follows:
    2014 2013
    £ £
Gerry Desler    –  18,109 
Oliver de Giorgio-Miller    – 15,000 
Dr George Morris    –  – 
Dr Satu Vainikka    2,975  –
Kevin Alexander    –  – 
Seppo Mäkinen    –  – 
NOTES TO THE COMPANY FINANCIAL STATEMENTS continued
for the year ended 31 December 2014 Strategic Report Governance Financial Statements
47
ValiRx plc
Annual Report and Accounts 2014 
NOTES 48
ValiRx plc
Annual Report and Accounts 2014 
NOTES continued Design & production
www.carrkamasa.co.uk
This Report has been printed on UPM Fine offset, a paper produced using
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