This will result in the Bellus Health Group owning 100% of the capital stock, thereby acquiring all of the business of Innodia including the intellectual property assets related to its diabetes and obesity projects.
Bellus Health has also effectively regained the rights to a diabetes project and certain compounds previously licensed by it to Innodia and, as a result, now hold the exclusive rights to Bellus Health’s diabetes platform and all related compounds.
The purchase price, in the amount of approximately $1.3 million including the purchase of the outstanding debt from Investissement Quebec, will be paid by the issuance from treasury of Bellus Health common shares.
Additional consideration consisting either in treasury shares or cash, at the option of Bellus health, is conditionally payable on the first anniversary of the closing of the transaction, contingent upon the determination of the value of certain assets at that time. The total purchase price is expected to approximate the net assets of Innodia.
Francesco Bellini, chairman, president and CEO of Bellus Health, said: “Bellus Health’s acquisition of Innodia is a timely opportunity because it allows the company to gain access to Innodia’s expertise and rights in diabetes and obesity at an attractive price and will help accelerate our own projects in diabetes and expand our pipeline through Innodia’s identified candidate leads.”