Bioniche Inc., Seikagaku Corp. deal

The companies will collaborate to develop BNC's Cystistat, a hyaluronate-based product that is in clinical trials for interstitial cystitis, an inflammatory bladder condition.

Seikagaku will fund C$1 million (US$740,000) of R&D in 1996, and may provide an additional C$12.5 million depending upon the outcome of a 150 patient trial scheduled to end by Sept. 1, 1996. Included in the C$12.5 million is a three-year stock purchase agreement under which Seikagaku would purchase a total of 3 million BNC shares in three annual installments. The price per share for the investment is 125 percent of the then-current market price, not to exceed C$2, C$3.50 and C$5 for each installment. BNC has 30 million shares outstanding prior to the investment. ...