VolitionRx Limited (NYSE:VNRX) has secured six-figure funding to continue its research into cancer diagnostic tests.
The company has been awarded US$700,000 in non-dilutive funding from the Walloon Regional Government, which oversees the French-speaking region of southern Belgium.
Starting in 2020, approximately US$200,000 of this funding will be repayable with annual installments over 12 years. A percentage of the company’s revenue may be payable over the same period, the company said in a statement.
The life sciences company develops blood tests to help diagnose a range of cancers. Its Nucleosomics platform identifies and measures nucleosomes, a unit of DNA, in the bloodstream to determine if a disease is present.
“We are committed to the region and plan to recruit even more of the talented scientists in the area. This funding will support our continued research and development activities towards what we hope will be life-saving cancer diagnostic tests,” said CEO Gaetan Michel in a press statement.
Oppenheimer analyst Mark Breidenbach described the company as an “overlooked innovator in the cancer diagnostic space".
Breidenbach sees the company launching its cancer screening tests in Europe in the first half of next year.
The tests could be introduced to the US market by 2021 if the company seeks the US Food and Drug Administration’s approval via a pre-market approval pathway.
The analyst gave the shares an Outperform rating with a price target of US$7.
Shares of the diagnostic company were up more than 8% to US$2.16 in Monday afternoon trading.
--Updated to reflect recent share price--
Contact Lenore Fedow at [email protected]