- Donald Olds to replace Neil Flanzraich on BELLUS board of directors -
LAVAL, QC, May 25, 2012 /CNW/ - BELLUS Health Inc. (TSX: BLU) ("BELLUS Health" or the "Company") and Pharmascience Inc. ("Pharmascience") today announced consummation of the previously announced strategic partnership (the "Arrangement") between the two companies whereby Pharmascience will pay a total of $17.25 million to BELLUS Health, including $8.15 million in non-dilutive capital and a $9.1 million investment for a 10.4% ownership stake in a new public company ("New BELLUS"). Shares will begin trading on a consolidated basis of one new post-consolidation common share for every 30 pre-consolidation common shares on the Toronto Stock Exchange under the ticker "BLU" at market open on May 29, 2012.
"By overwhelmingly supporting this transaction, stakeholders have placed the Company on a strong foundation for future growth. Over the next year, we will continue to enrol our confirmatory Phase III study for KIACTA™ in AA amyloidosis and also seek to expand our development portfolio," said Roberto Bellini, President and Chief Executive Officer of BELLUS Health.
"Our strategic partnership with Bellus will strengthen Pharmascience's position as a pharmaceutical leader, and will solidify our organization's growth strategy," said David Goodman, Chief Executive Officer of Pharmascience. "We look forward to our partnership with Bellus in their pursuit of products that will benefit both patients and investors," added Mr. Goodman.
Donald Olds to join BELLUS board
Donald Olds is the President and Chief Executive Officer of Presagia, a Montreal-based software firm that streamlines health and absence management processes.
Prior to joining Presagia, Mr. Olds was the COO and CFO of Aegera Therapeutics. At Aegera, Mr. Olds was responsible for leading clinical operations, business development, finance, administration, and mergers and acquisitions. During his tenure, he led financing and licensing efforts that raised more than $100 million in growth capital. He also headed the team that negotiated the successful sale of Aegera to Pharmascience in 2011.
Donald Olds will replace Neil Flanzraich, who will step down from the board of directors, effective May 25, 2012.
"Mr. Flanzraich was an important part of our board and we thank him sincerely for his 6 years of advice and support. We are excited to welcome Donald Olds and feel that his operational and financial experience as well as his close relationship with Pharmascience will make him a valuable addition to the board," said Mr. Bellini.
Final order of the Québec Superior Court of Justice
On May 16, 2012, BELLUS Health obtained a final order of the Québec Superior Court of Justice, approving the previously announced plan of arrangement under the Canada Business Corporations Act regarding the proposed partnership between BELLUS Health and Pharmascience.
About Pharmascience (www.pharmascience.com)
Founded in 1983, Pharmascience is a Canadian-owned pharmaceutical company that is based in Montreal and has over 1,300 employees. Pharmascience specializes in the development and marketing of a wide range of innovative and high-quality generic drugs, available by prescription, over the counter and in hospitals. Ranked third among the largest Canadian pharmaceutical companies in terms of prescriptions, Pharmascience sells its products in over 60 countries, with sales in excess of $700 million.
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, 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.
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 ability to obtain financing immediately in current markets, 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 Inc. does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation, achievement of forecasted burn rate, achievement of forecasted clinical trial milestones, and that actual results may vary once the final and quality-controlled verification of data and analyses has been completed. 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 Company's public fillings including the Annual Information Form of BELLUS Health Inc. for further risk factors that might affect the Company and its business.
For further information:
416-815-0700 ext. 248 | firstname.lastname@example.org
514-340-7845 | email@example.com