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BELLUS Health Receives Milestone Payment from Advanced Orthomolecular Research
LAVAL, QC, June 21, 2012 /CNW/ - BELLUS Health Inc. (TSX: BLU) ("BELLUS Health" or the "Com...
About this update from Bluenergies Ltd.
[{"type":"text","content":"\n\n\n\n\n\nLAVAL, QC, June 21, 2012 /CNW/ - BELLUS Health Inc. (TSX: BLU) (\"BELLUS\n Health\" or the \"Company\") today announced that it had received a\n $650,000 payment from Advanced Orthomolecular Research (AOR). This\n payment relates to the achievement of a pre-established milestone set\n when AOR acquired BELLUS Health's wholly-owned Canadian subsidiary OVOS\n Natural Health Inc. in January 2011.\n\n\n\"Over the next few years, BELLUS Health has the opportunity to earn more\n than $8 million in regulatory and commercial milestone payments based\n on the five VIVIMIND™ distribution partnerships signed to date,\" said\n Roberto Bellini, President and Chief Executive Officer of BELLUS\n Health. \"Combined with upfront and pre-agreed minimum payments\n estimated in excess of $2 million thus far, the financial impact of\n these arrangements is substantial. Our strategy for VIVIMIND™ is to\n continue building a substantial cashflow positive business through\n strategic distribution partners while we also focus our efforts on\n progressing and expanding our pharmaceutical development portfolio.\"\n\n\nIn January 2011, BELLUS Health and AOR entered into a share purchase\n agreement with respect to OVOS Natural Health Inc. Concurrently, the\n companies entered into a Canadian license and supply agreement\n (\"License and Supply Agreement\") relating to BELLUS Health's product\n VIVIMIND™. Pursuant to the License and Supply Agreement, BELLUS Health\n granted AOR exclusive distribution rights for VIVIMIND™ in Canada and\n agreed to supply AOR with the product at a pre-agreed transfer price.\n AOR is responsible for all marketing, distribution and sales activities\n of VIVIMIND™ in Canada. The License and Supply Agreement also provides\n for up to $3 million in commercial milestone payments to BELLUS Health\n should certain mutually agreed upon sales targets be achieved.\n\n\nAbout VIVIMIND™\n\n\nVIVIMIND™ is scientifically proven to help support the specific area of\n the brain known as the hippocampus, a region responsible for memory and\n learning. The active ingredient of VIVIMIND™, homotaurine, is a\n naturally occurring amino acid with unique properties found in certain\n seaweed. VIVIMIND™ is intended to be used in normal aging adults.\n\n\nVIVIMIND™ was s...