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BELLUS Health Announces the Sale of Subsidiary Thallion Pharmaceuticals to Taro Pharmaceuticals
BELLUS Health Announces the Sale of Subsidiary Thallion Pharmaceuticals to Taro Pharmaceut...
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[{"type":"text","content":"\n\n\n\nBELLUS Health Announces the Sale of Subsidiary Thallion Pharmaceuticals to Taro Pharmaceuticals\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nLAVAL, QC, March 16, 2017\n\n\n\nTotal consideration of up to CA$2.7 million\n\n\n\nLAVAL, QC, March 16, 2017 /CNW/ - BELLUS Health Inc. (TSX: BLU) (BELLUS Health) announced today that it has entered into a share purchase agreement (Share Purchase Agreement) with Taro Pharmaceuticals Inc. (Taro) for the sale of BELLUS Health's wholly-owned subsidiary Thallion Pharmaceuticals Inc. (Thallion), including all the rights to the drug candidate ShigamabTM.\n\nPursuant to the Share Purchase Agreement, Taro is acquiring all issued and outstanding shares of Thallion for a potential total consideration of CA$2.7 million, consisting of an upfront payment of CA$2.3 million and a potential future payment of CA$0.4 million contingent upon the completion of a pre-established milestone event, expected to occur within 24 months of the closing of the transaction. In addition, BELLUS Health will receive a portion of certain post-approval revenues related to the ShigamabTM program.\n\n\"This transaction supports the further development of ShigamabTM and allows us to focus our efforts on the rest of our pipeline including the recently in-licensed BLU-5937, a drug candidate for chronic cough,\" said Roberto Bellini, President and Chief Executive Officer of BELLUS Health. \"The upfront proceeds from this transaction also meaningfully extend our cash runway to Q4 2018.\"\n\nPayment to Thallion CVR Holders\n\nIn accordance with the terms of the agreements of the 2013 Thallion acquisition, 5% of the proceeds received by BELLUS Health from the sale of Thallion, including the ShigamabTM technology (ShigamabTM Consideration), is payable to Contingent Value Rights (CVR) holders.\n\nAccordingly, on April 7, 2017, an amount of CA$94,550 (CA$0.00263 per CVR) will be paid to CVR holders of record on March 16, 2017. An amount of CA$20,450 of CVR agent costs is deducted from the ShigamabTM Consideratio...