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Nicholas Piramal wraps up BioSyntech buyout

Our Corporate Bureau  |  Mumbai 

(NPIL) has closed the of 7,500,000 common shares at Canadian $0.80 a share in BioSyntech, a Canada-based specialising in discovery and thermogels for regenerative medicines.
The company has informed that in accordance with the agreements between the two, has nominated its chief scientific officer, Somesh Sharma, to be its representative on the board of
Commenting on the appointment of Sharma in the board, chairman said that it was an evidence of the company's strong interest in the development of BioSyntech's products and in based on their
The acquisition is a strategic fit for and Sharma's many years of experience with biotech in North America will be an important asset for
He added that the financing by gives sufficient funds to reach all of their fiscal year 2006 targeted clinical trial milestones.
In accordance with the rules of the TSX Venture Exchange, Canada , the shares issued to would be subject to a minimum holding period of four months.

NPIL's post-issue shareholding would be approximately 17 per cent of BioSyntech's issued shares.

As part of the arrangement, has acquired exclusive rights for marketing, sales and distribution of current and future products of for India, Pakistan , Sri Lanka, Bangladesh , Laos, Cambodia , Vietnam and Philippines.
In addition, the have agreed to explore opportunities to collaborate for research and development with respect to future products of using BioSyntech's
The agreements provide that for so long as shall be the registered holder of at least 5,000,000 shares of BioSyntech, the board of shall include representatives of in proportion to its shareholding, subject to a minimum of one director.
In addition, Nicholas Piramal would have proportional pre-emptive rights in the event the company offers further equity securities and, until 23 February, 2006, a veto right over issuances of shares below CDN$0.80. The agreements also confer on certain rights of first refusal, piggyback rights and drag along rights.

First Published: Wed, September 07 2005. 00:00 IST