Piramal Health to buy Biosyntech for C$3.9 million

Piramal Healthcare Ltd said on Tuesday it has signed a definite agreement to acquire the assets of Canada's BioSyntech Inc for C$3.9 million.

BioSyntech is a medical device company, specialising in the development and manufacturing of regenerative medicines, the Indian healthcare firm said in a statement.

"We had invested in the company in 2005 because we thought it was a good technology and now we have bought the whole company," Swati Piramal, director, strategic alliances and communications, told TV channel CNBC TV-18.

"Now we have invested C$3.9 million, but we had earlier invested 22 crores (Rs220 million) in 2005 and we will need money to finish this up, we estimate that to be another 35 crores (Rs350 million)... It will be funded through internal accruals".

Piramal had subscribed to common shares of BioSyntech in FY06, constituting 17% of the latter's equity, the statement said.

BioSyntech was unable to raise further capital to fund its ongoing operations and to repay maturing debts. The company had sought court protection under insolvency proceedings.

BioSyntech's platform technology is a family of hyfrogels called BST-gel, that can be injected or applied to repair damaged tissue like cartilage, bone and chronic wounds.

At 11.05am, shares of Piramal were up 1.17% at Rs495.10 a share in a weak Mumbai market.