VETOQUINOL and Bioniche Life Sciences Inc. jointly announced Feb. 27 that they have signed a share purchase agreement under which Vetoquinol has agreed to purchase Bioniche's Animal Health business for the cash purchase price of $61 million (Canadian).
Bioniche Animal Health, based in Canada, discovers, develops, manufactures and markets animal health products worldwide.
This agreement remains subject to the approval of Bioniche shareholders and customary closing conditions. The boards of directors of both corporations have approved the binding agreement, and notice of a special Bioniche shareholder meeting will be forthcoming.
Dr. Michael Berendt, Bioniche Life Sciences chief executive officer, said, "In May 2013, Bioniche Life Sciences began a formal process to divest our animal health business. This divestment is the logical progression of our corporate strategy to create a well-capitalized company focused on human health.
The Bioniche Animal Health divestment process was led by Evercore, a U.S.-based independent advisory firm that specializes in merger and acquisition transactions, divestitures and restructurings.
"We look forward to the integration of the Bioniche Animal Health business into our organization," Vetoquinol CEO Matthieu Frechin said. "This acquisition is a new milestone in the implementation of our long-term strategic plan. It will represent a significant reinforcement of our portfolio of products, with immediate synergies in Canada and the U.S. and midterm prospects in other markets."
Bioniche Animal Health was formed in 1979 as Vetrepharm to develop vaccines and other pharmaceutical-based products for the preventative health management of animal diseases. It markets a broad portfolio of products for companion animals, horses and the livestock industry, particularly a vaccine for Escherichia coli that has gained marketing approval in Canada but is still undergoing the approval process in the U.S.
Bioniche Animal Health has manufacturing facilities in Canada, the U.S. and Australia and marketing subsidiaries in most major markets. With a 100-acre research farm, in-house laboratories and established relationships with many global universities active in veterinary research, the company's research and development pipeline includes new technologies in the areas of oncology, immunology and reproduction.
Vetoquinol is a global animal health company based in France that serves both the livestock (cattle and pigs) and pet (dogs and cats) markets. It designs, develops and markets veterinary drugs and non-medicinal products in Europe, the Americas and the Asia Pacific region.