LAVAL, QC, June 21, 2012 /CNW/ - BELLUS Health Inc. (TSX: BLU) ("BELLUS
Health" or the "Company") today announced that it had received a
$650,000 payment from Advanced Orthomolecular Research (AOR). This
payment relates to the achievement of a pre-established milestone set
when AOR acquired BELLUS Health's wholly-owned Canadian subsidiary OVOS
Natural Health Inc. in January 2011.
"Over the next few years, BELLUS Health has the opportunity to earn more
than $8 million in regulatory and commercial milestone payments based
on the five VIVIMIND™ distribution partnerships signed to date," said
Roberto Bellini, President and Chief Executive Officer of BELLUS
Health. "Combined with upfront and pre-agreed minimum payments
estimated in excess of $2 million thus far, the financial impact of
these arrangements is substantial. Our strategy for VIVIMIND™ is to
continue building a substantial cashflow positive business through
strategic distribution partners while we also focus our efforts on
progressing and expanding our pharmaceutical development portfolio."
In January 2011, BELLUS Health and AOR entered into a share purchase
agreement with respect to OVOS Natural Health Inc. Concurrently, the
companies entered into a Canadian license and supply agreement
("License and Supply Agreement") relating to BELLUS Health's product
VIVIMIND™. Pursuant to the License and Supply Agreement, BELLUS Health
granted AOR exclusive distribution rights for VIVIMIND™ in Canada and
agreed to supply AOR with the product at a pre-agreed transfer price.
AOR is responsible for all marketing, distribution and sales activities
of VIVIMIND™ in Canada. 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.
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 of 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. 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™ have been
obtained in Italy, Spain, Canada and certain countries in the Middle
1 Gauthier S. et al, Journal Nutrition Health Aging, 2009; 13 (6): 550-7.
About Advanced Orthomolecular Research (www.aor.ca)
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 (www.bellushealth.com)
BELLUS Health is a development-focused healthcare company concentrating
on products that provide innovative health solutions and address
critical unmet medical needs. The Company, in collaboration with its
partner, Celtic Therapeutics Inc., is currently advancing its novel
drug candidate KIACTA™, through a Phase III trial for the treatment of
AA amyloidosis, an orphan indication resulting in renal dysfunction
that often rapidly leads to dialysis and eventually death. AA
amyloidosis affects approximately 50,000 individuals in the United
States, Europe and Japan.
SOURCE BELLUS HEALTH INC.
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