BELLUS Health signs agreement to acquire Innodia
BELLUS Health Inc. announced that it has signed a definitive agreement to purchase capital stock of Innodia Inc. 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 holds the exclusive rights to BELLUS Health's diabetes platform and all related compounds. Innodia Inc. is a private company engaged in developing compounds for the treatment of diabetes, obesity and related metabolic conditions and diseases.
The purchase price, in the amount of approximately $1.3 million including the purchase of the outstanding debt from Investissement Québec, 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. Innodia has secured credit facilities available of approximately $3 million and tax losses of more than $25 million. The Toronto Stock Exchange has issued an approval letter in respect of the transaction subject to customary conditions. A significant number of the shares to be issued will be subject to a hold period under applicable securities legislation.
"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," said Dr. Francesco Bellini, Chairman, President and CEO of BELLUS Health. "Several members of the Innodia research team will share their know-how in diabetes and metabolic syndrome, thereby reinforcing the existing expertise of the BELLUS Health Group and prove useful to further advance the related programs," Dr. Bellini concluded.
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