Terms amended in Bellus' acquisition of Thallion

Canada-based drugmaker Bellus Health (TSX: BLU) has amended its agreement to acquire fellow Canadian company Thallion Pharmaceuticals (TSX: TLN) to appease Thallion’s largest shareholder.

The original acquisition was for around C$6.33 million ($6.02 million) in cash or C$0.1765 per share (on a fully-diluted basis) with the issue of contingent value rights (CVRs) to entitle the holders to additional payments of up to about C$7.66 million, or C$0.2135 per CVR, if product revenue milestones are achieved. But Jaguar Financial, Thallion’s largest single shareholder (10.1%), indicated it would vote against the deal unless CVR terms were significantly raised ( The Pharma Letter July 1).

Terms amended to remove C$10 million threshold