ADVANCED ORTHOMOLECULAR RESEARCH ACQUIRES BELLUS HEALTH'S CANADIAN SUBSIDIARY OVOS NATURAL HEALTH
AOR is granted exclusive distribution rights to VIVIMIND™ in Canada;
BELLUS Health retains all rights to VIVIMIND™ in other jurisdictions worldwide
LAVAL, QC and CALGARY, Jan. 4 /CNW Telbec/ - BELLUS Health Inc. (TSX: BLU) ("BELLUS Health") and Advanced Orthomolecular Research Inc. ("AOR") announced today that they have entered into a share purchase agreement ("Share Purchase Agreement") with respect to BELLUS Health's wholly-owned Canadian subsidiary OVOS Natural Health Inc., and into a Canadian license and supply agreement ("License and Supply Agreement") relating to BELLUS Health's VIVIMIND™, a patented natural health product that has been shown to support the specific area of the brain known as the hippocampus, a region responsible for memory and learning.
Pursuant to the Share Purchase Agreement, AOR is acquiring all issued and outstanding shares of BELLUS Health's wholly-owned Canadian subsidiary OVOS Natural Health Inc. for a total consideration of $1 million, consisting of an upfront payment of $350 000 and of a payment of $650 000 contingent upon the successful completion of a pre-established milestone event expected to occur within 18 months of the closing of the transaction. Pursuant to the License and Supply Agreement, BELLUS Health is granting AOR exclusive distribution rights for VIVIMIND™ in Canada and will be supplying AOR with the product at a pre-agreed transfer price. AOR will be responsible for all marketing, distribution and sales activities of VIVIMIND™ in Canada. BELLUS Health retains all rights to VIVIMIND™ in other jurisdictions worldwide. The License and Supply Agreement also provides for up to $3 million in commercial milestone payments to BELLUS Health should certain mutually agreed upon sales targets be achieved.
"Following the issuance by Health Canada of a Natural Health Product Number (NPN) for VIVIMIND™ in September 2010, we are pleased to enter into a License and Supply Agreement for Canada with a leading provider of innovative nutraceuticals such as AOR," said Roberto Bellini, President and Chief Executive Officer of BELLUS Health. "This transaction further complements BELLUS Health's strategy to focus on our core development expertise while allowing strong strategic partners to commercialize our innovative products. Following the similar partnership concluded recently with FB Health for the Italian market, this is a model that we are seeking to reproduce in other territories worldwide," he added.
"AOR has always put overriding emphasis on providing health practitioners and patients with science-backed natural health products. VIVIMIND™ is scientifically proven to help support the hippocampus, the specific area of the brain responsible for memory and learning" said Mr. Clark Sayer, Chief Operating Officer of AOR. "VIVIMIND™ is a perfect addition to our portfolio of innovative nutraceutical products. Our team is looking forward to develop VIVIMIND™ to its full market potential in Canada," concluded Dr Traj Nibber, President and Founder of AOR.
VIVIMIND™ is scientifically proven to help support the specific area of the brain known as the hippocampus, a region responsible for memory and learning. The active ingredient behind VIVIMIND™, homotaurine, is a naturally occurring amino acid with unique properties found in certain seaweed. VIVIMIND™ is intended to be used in normal aging adults.
VIVIMIND™ was subject to over 15 years of significant scientific research, including clinical testing in over 2,000 individuals in European, American and Canadian medical centers. In a large controlled clinical study, VIVIMIND™ was shown to reduce by 68% the hippocampus volume loss in Alzheimer's disease patients over 18 months.1 Regulatory approvals for the commercial sale of VIVIMIND™ were obtained in Italy and in Spain in 2009, and a Natural Health Product Number was issued by Health Canada for VIVIMIND™ in September of 2010.
1 Gauthier S. et al, Journal Nutrition Health Aging, 2009; 13 (6): 550-7.
About Advanced Orthomolecular Research
Advanced Orthomolecular Research (AOR) has an established reputation as the most advanced supplement formulator in Canada. AOR consistently puts science-backed vitamin supplements and natural health products into the hands of health practitioners and into the lives of patients, insisting on solid science and real-world outcomes. AOR's portfolio of products includes over 160 vitamin supplements and natural health products.
About BELLUS Health
BELLUS Health is a development-focused health company concentrating on research and development of products that provide innovative health solutions and address critical unmet medical needs. For further information, please visit www.bellushealth.com.
Forward Looking Statements
Certain statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, may constitute forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond BELLUS Health Inc.'s control. Such risks include but are not limited to: the impact of general economic conditions, general conditions in the pharmaceutical and/or nutraceutical industry, changes in the regulatory environment in the jurisdictions in which the BELLUS Health Group does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation, that actual results may vary once the final and quality-controlled verification of data and analyses has been completed, as well as other risks disclosed in public filings of BELLUS Health Inc. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These statements speak only as of the date made and BELLUS Health Inc. is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, unless required by applicable legislation or regulation. Please see the Annual Information Form of BELLUS Health Inc. for further risk factors that might affect the BELLUS Health Group and its business.For further information:
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