BioSyntech Inc.
TSX VENTURE : BSY

BioSyntech Inc.
Nicholas Piramal India Limited

Nicholas Piramal India Limited

July 07, 2005 13:05 ET

BioSyntech, Inc. and Nicholas Piramal India Limited Announce Letter of Intent

LAVAL, CANADA and MUMBAI, INDIA--(CCNMatthews - July 7, 2005) - BioSyntech, Inc. (TSX VENTURE:BSY) has signed a letter of intent with Nicholas Piramal India Limited ("NPIL"), one of India's leading pharmaceutical companies, pursuant to which NPIL will subscribe to 7,500,000 common shares of the company at a price of C$0.80 per share. NPIL's post-issue shareholding will be approximately 17% of issued shares.

Biosyntech, Inc. is a Canada-based biotechnology research company that specializes in the discovery, development and manufacturing of cost-effective and physician-friendly biologic implants for therapeutic delivery and regenerative medicine.

Biosyntech specializes in Gel-based platforms that are liquid at room temperature and solid at body temperature. The gels are biodegradable, have porous internal structure and enable easy flow of blood nutrients, cells and fluids. These gels are minimally invasive and have controlled residence time.

The Company's lead products under advanced development are BST-CarGel®, BST-DermOn and BST-InPod, which are for cartilage regeneration, wound healing activation and fat pad reconstruction for heel pain respectively. Biosyntech has six other products under development for regenerative medicine and therapeutic delivery platforms.

As part of the arrangement, NPIL will acquire exclusive rights for marketing, sales and distribution of current and future products of BioSyntech for India, Pakistan, Sri Lanka, Bangladesh, Laos, Cambodia, Vietnam and Philippines.

In addition, the Companies have agreed to explore opportunities to collaborate for research and development activities with respect to future products of NPIL using BioSyntech's technological platforms.

The letter of intent provides that for so long as NPIL shall be the registered holder of at least 5,000,000 shares of the company, the board of directors of BioSyntech shall include representatives of NPIL in proportion to its shareholding, subject to a minimum of one director. In addition, NPIL will have proportional pre-emptive rights in the event the company offers further equity securities. This arrangement, which has been approved by the board of both companies, is conditional on satisfactory completion of due diligence, on regulatory approvals and on the signing of definitive agreements.

Commenting this transaction, Mr. Claude LeDuc, CEO of BioSyntech said: "We are very excited about this collaboration which brings to BioSyntech significant funding from acommitted strategic partner, distribution for its products in South-East Asia and the possibility to joint venture R&D activities in India."

About BioSyntech - BioSyntech is a biotechnology company specializing in the discovery, development and manufacturing of innovative cost-effective and physician-friendly therapeutic thermogels for regenerative medicine and therapeutic delivery. BioSyntech's Quality Management System is registered to ISO 9001:2000 and ISO 13485:2001 standards. BioSyntech is listed on the TSX Venture Exchange, Canada. For additional information, visit www.biosyntech.com.

About NPIL - Nicholas Piramal India Limited is one of India's largest pharmaceutical companies, with strong brand management and sales capabilities, a FDA site-approved plant for on-and-off patent APIs and Intermediates. It has R&D capabilities in Basic Research, Process Innovation, Custom Chemical Synthesis, Formulations R&D, NDDS, and also has a world-class accredited Clinical Research Organisation.

With growth fuelled through a strategy of partnerships, quality acquisitions, brand building, focused selling and manufacturing, NPIL's consolidated net sales were US$ 300 million in 2004-05. NPIL has emerged among the leaders in Indian pharma with one of the widest product portfolios in India, spanning nine key therapeutic areas, including the Cardio-vascular, Neuro-psychiatry, Oncology, Diabetes Management, Respiratory, Anti-infectives, Gastro-intestinals, Dermatology and NSAIDS. NPIL's exports initiative is focused on Custom Manufacturing for global innovator companies. NPIL does not participate in the early-to-market Generics market. NPIL is listed in India on the Bombay Stock Exchange, National Stock Exchange and Ahmedabad Stock Exchange. For further information, visit www.nicholaspiramal.com

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Contact Information

  • BioSyntech, Inc.
    Claude LeDuc
    President & CEO
    (450) 686-2437 (233)
    or
    Nicholas Piramal India Limited
    Vijay Sathye
    Vice President - Investor Relations and M&A
    +91-22-56637899
    Cell: +91-22-56637899