Bioniche sells proprietary cystitis product for C$10 million

By Lisa Kerner

Erie, Pa., May 3 - Bioniche Life Sciences Inc. agreed to sell its proprietary sodium hyaluronate product Cystistat to Bioniche Teoranta of County Galway, Ireland, for C$10 million.

Bioniche Teoranta is part of the Bioniche Pharma Group, which was sold by Bioniche Life Sciences to Bioniche Pharma Holdings Ltd. earlier this year.

The transaction, subject to potential post-closing downward adjustments of up to 8% of the purchase price, is expected to close by mid-May, according to a company news release.

The proceeds will be used to repay Bioniche Life Sciences' convertible term note to Laurus Master Funds and to acquire additional ordinary shares of Bioniche Pharma Holdings Ltd.

Bioniche Life Sciences will maintain its 10% ownership interest in Bioniche Pharma Holdings.

The balance of the proceeds from the sale of Cystistat (approximately C$5.9 million) will be used for working capital and to begin phase 3 clinical trials using proprietary Mycobacterial Cell Wall-DNA Complex for the treatment of bladder cancer.

"The sale of Cystistat is part of our corporate strategy to focus our resources and energy on our key strategic priorities, including the phase 3 trials for Urocidin (MCC) in bladder cancer and the licensing of our E. coli O157:H7 cattle vaccine, which is in the U.S. regulatory pathway," president and chief executive officer Graeme McRae said in the release.

Bioniche Life Sciences is a Belleville, Ont., research-based Canadian biopharmaceutical company.

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