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Valion Bio Announces U.S. Government-Funded Entolimod Studies Targeting Lethal Radiation-Induced GI Injury

(Positive)
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Valion Bio (Nasdaq:VBIO) announced that the Armed Forces Radiobiology Research Institute (AFRRI), under a National Institute of Allergy and Infectious Diseases (NIAID) contract and funded by the U.S. Department of War, is running a government-funded program evaluating Entolimod for lethal radiation-induced gastrointestinal (GI) injury.

Entolimod has been delivered to AFRRI, IACUC approval is in place, animals are acclimating, and a safety study is planned to start this week. Upon successful completion, a therapeutic study will begin to test post-exposure administration on survival and GI tissue recovery using a shielded-mouse model, with top-line therapeutic data anticipated in early fall. A potential prophylactic study is under consideration but not yet confirmed. According to Valion Bio, Entolimod has extensive animal and human safety data, was developed under the FDA Animal Rule, holds Fast Track and Orphan Drug designations, and could, if successful, be relevant for U.S. radiological and nuclear preparedness.

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Positive

  • Government-funded AFRRI/NIAID program evaluating Entolimod for radiation-induced GI injury
  • Safety study initiation planned this week with dosing-ready animals and IACUC approval
  • Therapeutic study to follow safety study, with top-line data expected in early fall
  • Extensive safety database across thousands of animals and approximately 300 human subjects
  • Regulatory recognition for Entolimod with FDA Fast Track and Orphan Drug designations
  • Potential dual protection for hematopoietic and GI systems if studies are successful

Negative

  • Key efficacy data pending, with first therapeutic top-line results not expected until early fall
  • Therapeutic study start is contingent on successful completion of the upcoming safety study
  • Prophylactic study currently only an indication of interest and not yet confirmed in writing
  • Evidence in the GI-specific mouse model has not yet been demonstrated for any drug, including Entolimod

Market Reaction – VBIO

+289.84% $1.21 129.3x vol
15m delay
+289.84% Vs previous close
+251.4% Peak in 25 min
$1.21 Last Price
$0.32 $1.22 Day Range
$4.66M Market Cap
129.3x Rel. Volume

Following this news, VBIO has gained 289.84%, reflecting a significant positive market reaction. Argus tracked a peak move of +251.4% during the session. Our momentum scanner has triggered 50 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $1.21. Trading volume is exceptionally heavy at 129.3x the average, suggesting very strong buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

The stock is up +7.5% following this news. VBIO's prior GI-ARS protocol announcement was followed by...
Analysis

The stock is up +7.5% following this news. VBIO's prior GI-ARS protocol announcement was followed by a +6.93% 24-hour reaction. That comparator framed the new study milestones against a history of mixed event responses, while pending therapeutic data remained a central risk to monitor.

Key Figures

Government-funded studies: 2 studies Animal safety database: more than 40 studies Human safety database: 300 human subjects +3 more
6 metrics
Government-funded studies 2 studies AFRRI/NIAID Entolimod program
Animal safety database more than 40 studies Entolimod development program
Human safety database 300 human subjects Entolimod development program
Phase I healthy subjects 150 healthy subjects Phase I safety studies
Subjects enrolled 40 subjects enrolled Neoadjuvant colorectal cancer study
Subjects dosed 30 subjects dosed with Entolimod Neoadjuvant colorectal cancer study

Historical Context

5 past events · Latest: Jul 22 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 22 Regulatory dossier review Positive -8.4% Formal review began under an equivalence pathway, but the 24-hour reaction was negative.
Jul 20 Clinical trial selection Positive -28.5% Sheba selected Entolimod for a planned cancer-patient study; the 24-hour reaction diverged negatively.
Jul 14 Program and manufacturing update Positive -7.6% Company outlined government engagement and manufacturing scale-up without executed procurement agreements.
Jun 25 GI-ARS protocol design Positive +6.9% AFRRI/NIAID finalized a GI-ARS survival-efficacy protocol under FDA Animal Rule criteria.
Jun 11 Legislative countermeasure support Positive -24.8% House committee report prioritized radiation countermeasures; the stock reaction diverged negatively.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive Valion Bio announcements generally diverged from subsequent 24-hour price reactions, with four divergences among five events.

Key Terms

iacuc, animal rule, investigational new drug application, tlr5 agonist, +1 more
5 terms
iacuc regulatory
"IACUC approval has been obtained"
A Institutional Animal Care and Use Committee (IACUC) is a formal review board that oversees and approves any use of animals in research or testing at an institution, ensuring ethical treatment, humane housing, and compliance with laws and standards. Think of it like a building inspector and ethics panel for animal studies: it reviews protocols, monitors care, and can pause or require changes to work. For investors, IACUC approval and compliance affect research timelines, regulatory risk, and reputational exposure for companies that perform animal testing.
animal rule regulatory
"It was developed in accordance with the FDA's Animal Rule"
A regulatory pathway that allows safety and effectiveness of drugs or vaccines to be judged primarily from well-controlled animal studies when human trials would be unethical or impossible, such as for treatments against rare, lethal exposures. It matters to investors because approval via this route can speed a product to market for urgent or niche needs but carries extra scientific and regulatory risk—think of it as accepting a high-quality dress rehearsal instead of a live show, with requirements for strong animal models and often additional post-approval obligations.
investigational new drug application regulatory
"remains under an open Investigational New Drug application with the FDA"
An investigational new drug application is a formal request made to regulatory authorities to begin testing a new medication in humans. It is a critical step in the drug development process, as approval indicates the drug has passed initial safety checks and can be studied further. For investors, this signals that a potential new treatment is progressing through its early testing stages, which can impact the company's future growth prospects.
tlr5 agonist medical
"Entolimod is a novel Toll-like receptor 5 (TLR5) agonist"
A TLR5 agonist is a molecule that activates the immune receptor TLR5, which detects bacterial flagellin and helps kick-start the body's defense response. Think of it like a fire alarm trigger that alerts and strengthens immune activity; in drugs and vaccines it can boost or direct immunity. Investors care because TLR5 agonists are a clear drug mechanism influencing clinical risk, regulatory review, safety, and market potential for vaccines and immunotherapies.
acute radiation syndrome medical
"Entolimod, for acute radiation syndrome (ARS)"
Acute radiation syndrome is the sudden illness that happens after a person absorbs a large dose of ionizing radiation in a short time, damaging blood cells, the gut, skin, and other organs. Think of it like a severe, internal burn that can impair a person’s ability to heal and fight infection. Investors watch it because outbreaks, accidents, or tests can trigger urgent regulatory action, reshape demand for medical treatments and protective equipment, create liability risks, and affect the operations and stock prices of companies in healthcare, energy, insurance, and related supply chains.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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AFRRI/NIAID Program to Advance Safety and Therapeutic Studies in Rapid Sequence; Top-Line Therapeutic Data Expected in Early Fall

Study drug delivered • IACUC approval secured • Safety study planned to start this week

Near-Term Program Milestones

  • Study readiness: Entolimod has been delivered to AFRRI, IACUC approval has been obtained, and study animals are being acclimated ahead of dosing. Dosing will begin this week.

  • Safety study: Planned to start this week to confirm Entolimod's tolerability in the animal strain AFRRI is using.

  • Therapeutic study: Expected to follow promptly upon successful completion of the safety study, with top-line data anticipated in early fall.

  • Broader program: The two government-funded studies form part of a broader Entolimod program AFRRI/NIAID is advancing. If the studies are successful, Entolimod would be the first drug to our knowledge that provides hematopoietic protection as well as GI protection.

SAN ANTONIO, TX / ACCESS Newswire / August 12, 2026 / Valion Bio, Inc. (Nasdaq:VBIO), a late-stage innate immunotherapeutics company, today announced that the Armed Forces Radiobiology Research Institute (AFRRI), under its contract with the National Institute of Allergy and Infectious Diseases (NIAID), is conducting a U.S. Department of War (DoW) government-funded program evaluating Entolimod for radiation-induced gastrointestinal (GI) injury.

The program is expected to advance through a safety study and, upon its successful completion, a therapeutic study in rapid sequence. The safety study is planned to start this week. The therapeutic study will evaluate whether Entolimod, administered after radiation exposure, can support survival and GI tissue recovery following lethal doses of ionizing radiation. Top-line therapeutic data are anticipated in early fall.

Why the Therapeutic Study Matters

Radiation-induced GI injury is a major potential cause of mortality following high-dose radiation exposure and remains a key focus of U.S. medical-countermeasure development. Successful development could support Entolimod's potential role in government preparedness for radiological and nuclear mass-casualty scenarios.

The therapeutic study uses a shielded-mouse model designed to preserve the majority of the animals' bone marrow. This should allow investigators to evaluate survival and tissue-recovery effects attributable specifically to GI protection, rather than confounding results with bone-marrow outcomes. The Company believes Entolimod's ability to support survival while promoting GI recovery in this model would represent a result not previously demonstrated by a U.S. government-tested countermeasure.

AFRRI/NIAID Entolimod Study Program

AFRRI is conducting the following studies under the government-funded program:

Safety study - To confirm Entolimod's tolerability in the animal strain AFRRI is using; planned to start this week ahead of the therapeutic study.

Therapeutic study - Evaluates whether Entolimod supports survival and GI tissue recovery when administered after radiation exposure; expected to initiate upon successful completion of the safety study, with top-line data anticipated in early fall.

Potential prophylactic study - Determine if Entolimod can protect GI tissue when administered before radiation exposure. While the Company has received an indication of interest, the study has not yet been confirmed and remains subject to written confirmation from AFRRI. Valion Bio expects to provide further information if and when it is confirmed.

Management Commentary

"We have completed the operational milestones needed to keep the program on schedule: Entolimod is at AFRRI, animals are being acclimated, and IACUC approval is in hand," said Michael K. Handley, Chief Executive Officer of Valion Bio. "Entolimod has generated an extensive safety database across thousands of animals in more than 40 studies, including non-human primates, and in 300 human subjects. It was developed in accordance with the FDA's Animal Rule and remains under an open Investigational New Drug application with the FDA.² That history gives us confidence as AFRRI prepares to initiate the safety study in this new mouse strain."

"AFRRI's plan to conduct these studies in rapid sequence underscores the importance and urgency we believe the government places on advancing medical countermeasures for lethal radiation injury," Handley continued. "The therapeutic study is designed to isolate Entolimod's GI-specific effect in a challenging model using lethal doses of ionizing radiation while preserving bone marrow. To our knowledge, no drug has previously demonstrated efficacy in this model. A positive result could therefore represent an important first for a U.S. government-tested radiation countermeasure."

"Evaluating Entolimod across multiple radiation scenarios reflects the potential breadth of this program. We look forward to reporting progress and sharing top-line therapeutic data when available," Handley added.

Notes and Sources

1. Casualty and mortality context for acute radiation syndrome, including radiological and nuclear mass-casualty scenarios, is described in the Entolimod program documentation (Entolimod Summary Document, 10 October 2022) and the underlying published literature cited therein.

2. Entolimod safety-database figures, FDA Animal Rule development (21 CFR 601.90), and open Investigational New Drug status are as described in the Entolimod Investigator's Brochure, Version 9 (12 August 2019). The clinical safety database comprises approximately 300 human subjects, including 150 healthy subjects in the Phase I safety studies (HU-7014 and HU-9001) and additional subjects dosed in Company-sponsored oncology studies, including a neoadjuvant colorectal cancer study (ClinicalTrials.gov NCT02715882, 40 subjects enrolled, 30 dosed with Entolimod); nonclinical evaluation includes non-human primate and other animal studies conducted across the Entolimod development program.

About Valion Bio, Inc.

Valion Bio, Inc. (Nasdaq:VBIO) is developing biologics that activate innate immune pathways for cytoprotection and modulate immune responses in conditions driven by radiation, disease, and immune dysregulation. The Company's lead candidate, Entolimod, for acute radiation syndrome (ARS), has been extensively studied and has demonstrated survival benefits and improved tissue recovery in animal models under the FDA's Animal Rule. Entolimod is a novel Toll-like receptor 5 (TLR5) agonist that activates NF-κB signaling pathways to protect cells from damage and stimulate immune responses and has received Fast Track and Orphan Drug designations from the U.S. Food and Drug Administration.

Valion Bio is also advancing Entolasta, a next-generation TLR5 agonist designed for potential broader therapeutic applications, including oncology supportive care. Valion Bio's wholly owned subsidiary, Velocity Bioworks®, is a full-service CDMO offering biomanufacturing services to third-party biotech companies, which Valion Bio also leverages to advance its own pipeline with the expected benefits of lower costs, accelerated manufacturing outcomes, and supply-chain security. For more information, visit valionbio.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements may be identified by words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or similar expressions, although not all forward-looking statements contain these words.

Forward-looking statements are based on Valion Bio, Inc.'s current expectations and are subject to inherent uncertainties, risks, and assumptions that are difficult to predict. These include the Company's interactions with and guidance from the FDA and other regulatory authorities; continued interest of BARDA, NIAID, and other U.S. government agencies in Entolimod; the timing and success of preclinical and clinical trials and study results, including the AFRRI/NIAID studies described herein; the risk that the safety study may not be completed successfully or on the anticipated timeline, which could delay or prevent initiation of the therapeutic study; the risk that the therapeutic study may not be completed successfully or on the anticipated timeline; the risk that U.S. government funding or authorization for studies described herein, including any potential prophylactic study, may not be formalized, confirmed, may be reduced, or may be withdrawn; the Company's ability to achieve expected benefits from acquisitions; changes in partner relationships; failure to obtain regulatory approvals or comply with applicable regulations, including the Animal Rule; future development of Entolimod or Entolasta; commercialization risks; strategic-transaction risks; working-capital needs; Nasdaq-listing risks; and changes in tariffs, inflation, legal, regulatory, political, and economic conditions.

Readers are cautioned not to place undue reliance on forward-looking statements. For a discussion of relevant risks and uncertainties, see Valion Bio's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2025, filed March 30, 2026, under "Risk Factors," and subsequent SEC filings. Forward-looking statements are made as of the date of this release, and the Company undertakes no duty to update them except as required by applicable law.

Investor and Media Contact

Rich Cockrell
CG Capital
vbio@cg.capital
404.736.3838

Valion Bio, Inc. | Nasdaq: VBIO

SOURCE: Valion Bio, Inc.



View the original press release on ACCESS Newswire

FAQ

What did Valion Bio (NASDAQ:VBIO) announce about Entolimod on August 12, 2026?

Valion Bio announced a U.S. government-funded AFRRI/NIAID program evaluating Entolimod for radiation-induced GI injury. According to Valion Bio, the program includes a safety study starting this week and a follow-on therapeutic study, with top-line therapeutic data anticipated in early fall.

What is the goal of the AFRRI/NIAID Entolimod therapeutic study for VBIO?

The therapeutic study aims to assess whether Entolimod supports survival and GI tissue recovery after lethal ionizing radiation. According to Valion Bio, it uses a shielded-mouse model preserving bone marrow to isolate GI-specific effects, with top-line data expected in early fall if the study proceeds as planned.

When will Valion Bio (VBIO) start and report results from the Entolimod safety and therapeutic studies?

The safety study is planned to start this week, and the therapeutic study is expected to follow upon its successful completion. According to Valion Bio, top-line data from the therapeutic study are anticipated in early fall, providing the first readout from this government-funded program.

How is the U.S. government involved in Valion Bio’s Entolimod GI radiation program?

AFRRI is conducting Entolimod studies under a U.S. Department of War-funded program and an NIAID contract. According to Valion Bio, this support covers a safety study and a post-exposure therapeutic study, with a potential prophylactic study under discussion but not yet formally confirmed.

What prior safety and regulatory data support Entolimod in Valion Bio’s VBIO pipeline?

Entolimod has an extensive safety database in thousands of animals and about 300 human subjects. According to Valion Bio, it was developed under the FDA’s Animal Rule, remains under an open IND, and has received Fast Track and Orphan Drug designations for acute radiation syndrome.

Could Entolimod become a government countermeasure for radiological or nuclear events?

Entolimod is being evaluated as a potential medical countermeasure for radiation-induced GI injury relevant to mass-casualty scenarios. According to Valion Bio, successful development in current AFRRI/NIAID studies could support a role in U.S. preparedness, but efficacy in the GI-specific model remains to be demonstrated.

Is Valion Bio planning additional Entolimod radiation studies beyond the current AFRRI program?

A potential prophylactic study to test Entolimod before radiation exposure is under consideration. According to Valion Bio, AFRRI has indicated interest, but the study is not yet confirmed and remains subject to written confirmation before further details are provided.