Laval’s ProMetic Life Sciences Inc (TSX: PLI) has officially closed its acquisition of Montreal-based Telesta Therapeutics Inc (TSX: TST) in an effort to shift itself into a major Canadian player in biopharmaceuticals. Through the acquisition, ProMetic also now gains a strong foothold in the Ontario market.
Telesta is a company focused on the acquisition and development of therapeutics for cancer and other diseases. ProMetic is a global biopharmaceutical corporation that supplies technologies for “bioseparations,” or separating the products of a biochemical reaction without damaging the organisms concerned. The company develops its own plasma-derived therapeutics and small-molecule therapeutic products targeting typically unmet medical needs.
ProMetic said the deal will provide $34 million in cash to be deployed towards its drug development and clinical programs, while adding a150,000 sq. ft. facility in Belleville, Ontario to the company’s arsenal.
“ProMetic represents a balanced, low-risk, high-reward opportunity as we are getting ready to launch our first plasma-derived therapeutic, plasminogen, in mid-2017,” said ProMetic’s CEO, Pierre Laurin.
“Closing this transaction is both strategically and tactically significant for ProMetic,” added the company’s COO, Bruce Pritchard. “It brings cash which extends our operating runway; a small group of key personnel who are highly complementary to our existing staff; tax losses to be used going forward; and a facility in Belleville that could add quickly to our existing manufacturing output. It also widens our trans-Canadian footprint, positioning us as a major supplier of plasma proteins to the Canadian market.”
The deal was first announced in August, according to PEhub’s Kirk Falconer, but took until this month to close.