Bellus Health, Pharmascience deal

Generics company Pharmascience will pay C$17.3 million ($17.4 million) to recapitalize Bellus Health into a new public company. Pharmascience will provide C$8.2 million ($8.2 million) in non-dilutive capital to Bellus and will make a C$9.1 million ($9.1 million) investment for a 10.4% stake in the new company. Existing Bellus shareholders will own 89.6% of the new company.

Bellus (formerly Neurochem Inc.) said the deal will result in a simplified capital structure and will increase trading liquidity. Pharmascience plans to collaborate with Bellus on drug development programs of mutual interest. The deal is subject to Bellus shareholder approval at a May 15 meeting. Bellus' board unanimously recommends shareholders approve the deal. ...