Bioniche to sell animal health division

Bioniche Life Sciences (ASX:BNC) plans to sell off its animal health business and has contracted US-based advisory firm Evercore Partners to help it with the sale.

The company said it had decided to sell its animal health unit as part of a plan to unlock corporate value and after receiving multiple unsolicited offers.

“Three large animal health companies have now expressed interest, in writing, in executing a purchase of [our] animal health business,” Bioniche chairman James Rae said.

He said the animal health unit, which has been operating for 34 years, is now profitable before R&D costs.

Canadian-headquartered Bioniche’s Australian operations are focused on the animal health side of the business.

A sale of the operating division would leave Bioniche with its food safety and human health businesses.

On the human health side, Bioniche also revealed that more than 30 companies have expressed an interest in marketing bladder cancer treatment candidate Urocidin. Bioniche resumed control of Urocidin last month after winding up its original licensing agreement with Endo Pharmaceuticals.

In the past few weeks, Bioniche has received a preliminary licensing offer and a preliminary equity investment offer. The company has also held preliminary discussions with potential partners for Econiche, the company’s E. coli O157 food safety cattle vaccine.

Bioniche shares were trading unchanged at $0.19 as of around 1 pm on Tuesday.