In yesterday’s session, Bellus Health Inc (NASDAQ: BLU) continued its upside momentum that started over a week ago to close the day with gains of 5.76%. The stock has been on an upward trajectory since it announced that it was acquiring the remaining IP rights for BLU-5937 from adMare BioInnovations.
Under the terms of the deal, the two companies agreed to end the prior licensing agreement that was signed in 2017. The 2017 deal gave Bellus Health Inc exclusive rights to develop and sell BLU-5937 and its related assets. The purchase deal also brings to an end the royalty obligation that was tiered at 3%, 5% and 10% for revenues, and any partnership payments that would have belonged to adMare. With the completion of the deal, BELLUS Health will own and control 100% of BLU-5937 assets with no obligations to third parties. As consideration for the deal, Bellus will give adMare 4,770,000 of its common stock. This represents 7.3% of the company’s diluted shares.
Commenting on the deal, Bellus Health CEO Roberto Bellini stated that, the agreement gave Bellus complete control over BLU-5937 and all P2X3 related products. He added that the deal put to an end any future obligations, thereby allowing the company to give its shareholders maximum value.
Looking at its price action, BLU has had a V-shaped recovery after its recent dip. In yesterday’s session, the stock opened the day at $10.42. It then traded between a low of $10.12 and a high of $11.68, before closing the day at $11.02. Volumes in the day stood at 453.14k.
About Bellus Health Inc
Bellus Health Inc is a biopharmaceutical company that makes new therapies for chronic cough and other disorders. It is based in Laval, Canada.