Piramal Healthcare (Piramal) has signed a definitive agreement to acquire BioSyntech’s assets for a consideration of Canadian $3.9 million (around Rs 17.50 crore). BioSyntech is a medical device company specializing in the development, manufacturing and commercialization of advanced biotherapeutic thermogels for regenerative medicine (tissue repair) and therapeutic delivery.

BioSyntech’s platform technology is a family of hydro gels called BST-Gel, some of which are liquid at low temperature and solid at human body temperature. These gels can be injected or applied to a specific local site and offer beneficial properties for the local repair of damaged tissue such as cartilage, bone and chronic wounds and provide the benefit of avoiding invasive surgery. The company’s lead, late-stage product, BST-CarGel is currently undergoing an international pivotal trial.

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.”

Piramal had subscribed to common shares of BioSyntech in FY2006 which then constituted 17 per cent of equity of BioSyntech. By virtue of this investment, Piramal had exclusive marketing rights for the marketing, sales and distribution of current and future products of BioSyntech, for India and some neighbouring Asian markets.

BioSyntech has been unable to raise further capital to fund its ongoing operations and to repay maturing debt. As a result, BioSyntech sought court protection under insolvency proceedings. Taking into consideration Piramal’s interests in the projects of BioSyntech, Piramal made a binding offer and the Superior Court of Quebec (Canada) allowed the Interim Receiver to accept this offer.