Bioniche Completes Sale of Two Remaining Assets Associated with Irish Pharma Group

12-Dec-2006

Bioniche Life Sciences Inc. announced that it has completed the sale of two of its remaining assets associated with Bioniche Pharma Holdings Limited, the entity which now holds the shares of Bioniche Pharma Group Limited. The Company reached an agreement last month with Bioniche Pharma Holdings Limited and the shareholders of that company to sell its 10% ownership position in Bioniche Pharma Holdings and its annual royalty payments for each of the next five years related to sales of Suplasyn(R) for a total of $6 million USD. Suplasyn(R) is a proprietary product for the treatment of osteoarthritis in human joints that was developed by the Company.

The Company has agreed to utilize $2.3 million USD of the proceeds to partially repay its convertible term note, and to repay an additional $200,000 in shares at market price less a 15% discount, leaving Bioniche with a net convertible term debt balance of approximately $2 million Cdn. and $3 million Cdn. of operating debt. There is no penalty attached to this repayment.

"At this point in the development of the Company, the cash generated from the sale of these assets is critical to furthering our priority projects," said Graeme McRae, President & CEO of Bioniche Life Sciences Inc. "Our focus is on completing Phase III bladder cancer trials with our proprietary Mycobacterial Cell Wall-DNA Complex (MCC) - trademarked Urocidin - and obtaining marketing registrations for our E. coli O157:H7 cattle vaccine."

I n human cancer, Mycobacterial Cell Wall-DNA Complex (MCC) - trademarked Urocidin - has entered a Phase III clinical program in non-muscle invasive bladder cancer, with the first patient enrolled last month in a trial involving patients who are refractory to the current standard therapy. The Company believes there to be a large and unmet medical need in the treatment of this type of cancer.

After the sale of the above two assets, Bioniche will retain its potential earnout payments that relate to certain Bioniche Pharma Holdings performance targets.

https://www.bionity.com/en/news/60074/bioniche-completes-sale-of-two-remaining-assets-associated-with-irish-pharma-group.html