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PRESS RELEASE
Nicholas Piramal India
Limited Invests 17% equity in Canadian Biotech Research
Company - Biosyntech, Inc.
Mumbai, India, 07 July 2005 — BioSyntech, Inc. 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 CAN$0.8 per share. NPIL’s post-issue shareholding will be 17.1% 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 and
neighbouring Asian markets.
In addition, the Companies have agreed to explore opportunities to collaborate for research and development activities with respect to future products using BioSyntech’s technological platforms.
The board of directors of BioSyntech shall include representatives of NPIL in proportion to its shareholding. This arrangement is conditional on satisfactory completion of due diligence, on board approvals of both companies, on regulatory approvals and on the signing of definitive agreements.
Commenting on this transaction, Mr. Claude LeDuc, CEO of BioSyntech said: “We are very excited about this collaboration which brings to BioSyntech significant funding from a committed 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.
Contact:
Nicholas Piramal India Limited
Vijay Sathye
Vice President, Investor Relations and M&A
Nicholas Piramal India Ltd.
Tel: 9122 - 56637899
Mobile: 98218 79774/+9324689774
E-mail: vsathye@nicholaspiramal.co.in
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