Morphogenesis Inc

RNS Number:0931N
ValiRx PLC
04 December 2006

Monday 4th December

                 ValiRx increases holding in Morphogenesis Inc.

        - development funding targeted at cancer vaccine technologies -

ValiRx plc ("VailRx" or the "Company") (AIM: VAL), the cancer therapeutics
company, today announces that it is providing 193,000 ($375,000) in development
funding to emerging US biotechnology company, Morphogenesis Inc
( In addition, ValiRx has subscribed for 250,000
share warrants, exercisable at 1 US dollar within the next three years, taking
ValiRx's holding in the company to:

   1,806,700 ordinary shares
   250,000 warrants

Founded in 1996, Morphogenesis Inc. is developing a portfolio of cell therapy
products for the treatment of chronic disorders. Its most advanced product,
ImmuneFxTM - for which the company was granted a US patent on 22nd August 2006
(US patent 7,094,603) - is due to go into phase II pre-clinical trials in 2007,
potentially providing cancer vaccine solutions that target tumours in both
humans and pets. It has been estimated by the Company that the canine
lymphosarcoma market in the US alone would be in excess of $200 million a year.

Commenting on the investment, Chief Executive of ValiRx, Dr Satu Vainikka, said:

"We are excited by the advances Morphogenesis is making. We view its early-stage
cell technology and products as not only being significant in their own right
but as potentially highly complementary to our GeneICE approach."

Contact Details:

       ValiRx Ltd               WH Ireland          Morphogenesis Inc.           GTH Communications
    Dr Satu Vainikka          David Youngman            Pat Lawman           Toby Hall / Jade Mamarbachi
  +44 (0) 207 408 5400     +44 (0) 161 832 2174      +1 (813) 855 9844          +44 (0) 20 7153 8035

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About GeneICE

GeneICE - developed by Cronos Therapeutics in which ValiRx holds a 60.28 per
cent stake - has the potential to freeze the development and growth of cancerous
cells. In March 06, Cancer Research Technology, the development and
commercialisation arm of Cancer Research UK, announced it had entered into a
partnership to complete key proof of concept studies for the GeneICE approach.
It is believed that GeneICE - already tested on six cancer cells - could be
relevant to up to 80% of breast cancers, 90% of prostate cancers and 80% of

About ImmuneFxTM

The ImmuneFxTM cancer vaccine capitalizes on the ability of bacterial antigens
to evoke a strong immune response and the ability of the patient's immune system
to respond to the presence of the bacterial antigens by directing the force of
the immune system specifically to the tumour. Typically, cancer cells do not
normally evoke an immune response that is effective in preventing the formation
of tumours.

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