Uncertainty over Bellus' acquisition of Thallion in £$6 million deal

Canada-based drugmaker Bellus Health (TSX: BLU) has agreed to acquire fellow Canadian company Thallion Pharmaceuticals (TSX: TLN) for around C$6.33 million ($6.02 million) in cash or $0.1765 per share (on a fully-diluted basis). In addition, the issue of contingent value rights (CVRs) will entitle the holders to additional payments of up to about $7.66 million, or $0.2135 per CVR, if product revenue milestones are achieved.

Thallion is developing Shigamabs, a monoclonal antibody therapy being evaluated for the treatment of Shiga toxin-producing E. coli (STEC) bacterial infections. STEC infections can lead to hemolytic uremic syndrome (HUS), a condition principally affecting the kidneys and that often leads to dialysis and in certain cases death.

Earlier this year Thallion’s partner LFB Biotechnologies of France pulled out of a licensing deal for the products, at which time the Canadian firm said it would explore opportunities to maximize shareholder value, including a possible sale of the company (The Pharma Letter February 21).