Bioniche to divest animal health business

Published on: May 14, 2013

Bioniche Life Sciences Inc., a research-based, technology-driven Canadian biopharmaceutical company, announced May 13 that it has engaged U.S.-based Evercore Partners to assist the Bioniche board of directors and management in its divestment of its animal health business.

This decision to divest the Animal Health business was taken following several months of discussion between the board and management related to unlocking corporate value for the benefit of all shareholders, and following the receipt of several unsolicited offers to purchase the business, the announcement said.

"Three large animal health companies have now expressed interest, in writing, in executing a purchase of the company's animal health business," James Rae, chairman of the Bioniche board of directors, said. "Evercore's track record in successfully negotiating such transactions and its extensive network of contacts in the animal health industry make it an ideal firm to lead this exercise."

The company has successfully built its animal health business over 34 years to the point where it is profitable before research and development, with a successful mix of products primarily in livestock reproduction, immunotherapeutics, equine performance and companion animals.

With regard to Bioniche One Health and the company's Animal Health & Food Safety Vaccine Manufacturing Centre in Belleville, Ont., the company has had preliminary discussions with companies that have an interest in potential partnerships around Econiche, the company's Escherichia coli O157 cattle vaccine, and around manufacturing capacity in the Vaccine Manufacturing Centre.