Inaphaea Evaluation and Commercial Use Agreement

Inaphaea is pleased to confirm the execution of an Evaluation and Commercial Use agreement ("Agreement") with UK based DLOC Biosystems Holdings Limited ("DLOC") to provide Inaphaea's Patient Derived Cells ("PDC") for evaluation and commercial use in DLOC's state-of-the-art organ-on-a-chip technology. The contract initially focusses on establishment of up to four glioblastoma and one Triple Negative Breast Cancer in-vitro 3D tumour model which will then be offered for commercial services by DLOC and Inaphaea. Additional PDCs across Inaphaea's range of 66 cancer types can be added at any time.

Inaphaea will be entitled to an upfront fee and a percentage of service royalties on commercialisation of the models. DLOC have an option to buy the commercialise rights in relating to the PDCs and support future drug development. Both companies have also agreed to co-market their respective services. The Agreement is for a period of 12 months initially and may be extended in writing by mutual agreement.

Andrew Carnegie, Head of Strategic Commercial Development at Inaphaea, commented "Companies with exciting technology platforms like DLOC represent the future of rapid drug development and we are excited to support the development of more realistic tumour models to extend the applications of the PDCs from our biobank. There is a great synergy between DLOC's non animal based testing and Inaphaea's vision for accelerating drug candidates along the development pipeline."

Mark Eccleston, CEO of ValiRx commented "This second deal to exploit Inaphaea's Patient Derived Cell bank demonstrates the interest in our biobank and we look forward to developing the next generation of in-vitro drug evaluation systems with DLOC."

Wadah Malaeab, CEO of DLOC, commented "DLOC is developing state-of-the-art organ-on-a-chip technology to deliver accurate assay testing services to pharmaceutical companies and advance drug discovery. This partnership with Inaphaea is a perfect synergy. By combining 3D tumour models, utilising Inaphaea's library of PDCs, with our biochips to provide an environment where cells can grow and reorganise into tissues, provides the perfect setting for large scale, affordable drug testing. Our technology will help to enable the reduction and replacement of animal testing, by providing more accurate data on safety and efficacy than current pre-clinical testing models."