Superior Court of Quebec allowed the Interim Receiver to accept the binding offer
Piramal Healthcare announced the signing of a definitive agreement to acquire Canada's BioSyntech's assets for a consideration of Canadian $3.9 million (about Rs. 17.65 crore).
BioSyntech is a medical device company specialising in the development, manufacturing and commercialisation of advanced biotherapeutic thermogels for regenerative medicine (tissue repair) and therapeutic delivery.
Piramal had subscribed to common shares of BioSyntech in 2005-06 which then constituted 17 per cent of its equity. By virtue of this investment, Piramal had exclusive rights for marketing, selling and distributing current and future products of BioSyntech for India and some neighbouring Asian markets.
BioSyntech was unable to raise further capital to fund its operations and to repay debt and as a result, it sought court protection under insolvency proceedings. Taking into consideration Piramal Health's interests in the projects of BioSyntech, the former made a binding offer and the Superior Court of Quebec (Canada) allowed the Interim Receiver to accept this offer.
Commenting on the transaction, Ajay Piramal, Chairman, Piramal Group, said “BST-Car Gel is a one-stage application that can be performed arthroscopically and is the only potential substitute available for knee replacement surgery. This treatment also promises to be significantly less expensive than current alternatives.”