Bioniche to delist from ASX

Bioniche Life Sciences (ASX:BNC) has announced plans to delist from the ASX and revealed it has entered the negotiation stage of the planned sale of its animal health unit.

The Canadian-headquartered company has decided to pull out of the ASX in the first half of 2014, citing the very low level of trading of its CDIs on the exchange and the small number remaining.

Bioniche intends to remain listed on the Toronto stock exchange (TSX) following the delisting. All current Bioniche CDI holders will be offered options including transferring their share package to the TSX.

A delisting from the ASX might also make sense considering the company’s progress with the planned sale of its animal health unit, which is expected during the current financial year. Bioniche’s Australian operations are focused on the animal health side of the business.

Bioniche is at the negotiation stage with the sale and plans to bring an offer to shareholders within 30-60 days of signing a definitive agreement, the company said yesterday.

The company also revealed it has secured FDA approval to sell its NexHA, its purified hyaluronate sodium product for horses, in the US market. The joint dysfunction treatment will launch next week at the American Association of Equine Practitioners’ annual convention in Tennessee.

Finally, Bioniche disclosed that it has postponed a planned meeting with the FDA to discuss potential fast-track approval of Urocidin, its bladder cancer treatment candidate, to give it more time to prepare the information requested by the regulator.

Bioniche took back the rights to Urocidin from former partner Endo Pharmaceuticals last year under a termination agreement.

Bioniche (ASX:BNC) CDIs were trading 7.89% lower at $0.35 as of around 1 pm on Monday.