Looks like this is the last of the Mills and Wagner stories. Dave Gibbons is sticking around though.
Oh, and there’s a classic Doctor foe in this story.
The Werelox are attacking the colonies of New Earth! Simple-minded alien werewolves whose toxic claws and teeth can turn survivors who get the merest scratch from said claws and teeth into more Werelox! And they somehow have spaceships and ray guns. Well, that’s unexpected.
Into all this comes the Doctor, his new companion Sharon, and K9, now working correctly again. They land on a space trucker’s ship, make friends of the single mom engineer and co-owner Babe Roth, a name I remember because…well, look at that name. And yes, the Doctor gets scratched, but he can just take the TARDIS to another dimension with K9 to keep him working and spend a couple months (or minutes relatively speaking) to find a cure. From there, the Doctor does have a mystery to solve: who the heck is arming the Werelox? A little hypnosis of one Werelox soldier who proves to be very helpful reveals they’re working for “the evil ones,” beings that just want to exterminate everything in the New Earth system.
Wait? Exterminate? Oh yeah, it’s the Daleks. Those guys are always causing trouble. Also, they have plans that involve weapons that take out whole peoples faster than the Werelox, so the Doctor, K9, and that Werelox sidekick he picked up need to bring the Daleks down, including a trip to an alien zoo/prison where the Daleks have locked up various races known for their evil ways, all to the point of genetically extracting those traits into themselves. K9 shoots the locks off the cells, and it turns out those guys hate the Daleks a lot for locking them up and pretty much ignore the Doctor and his pals.
But in the end, the Doctor uses some time travel to freeze the Daleks and their Werelox troops in time, setting them outside of normal time and space, and then returning to New Earth, leaving his new hairy friend there before taking off again with Sharon and K9.
The Daleks never do learn.