Montreal drug researcher Neurochem Inc. changed its name yesterday to Bellus Health Inc., and says it plans to generate revenue from the early sale of natural health products to help finance long-term development of its pipeline of pharmaceuticals.
Founder and CEO Francesco Bellini told the annual meeting the name change is effective April 21 when new trading symbols will be adopted on the Toronto Stock Exchange (BLU) and Nasdaq (BLUS) in New York.
"The change won't make any difference to future financing, but it does indicate a shift toward a broader corporate strategy," he said.
"We've created a new, fully owned unit, Ovos Natural Health, through which we plan to launch Vivimind, a patented and proven natural product to protect memory and other aging problems, later this year."
Bellus would make the product and it is negotiating with potential distributors for Canada and the United States, Bellini said, and revenues should begin to flow later in 2009," he added.
"The product is based on years of fundamental research, and there's an initial world market of $1 billion U.S. or more waiting. Success will help us fund our longer-term drug programs."
Bellini said Vivimind helps to protect memory function and other age-associated cognitive problems and no other natural health product addressing memory function exists with the same safety and efficacy record. The aim is to maintain health and delay aging's effects. The product will be available through normal retail channels.
Bellini said Bellus plans a second Phase III clinical trial of
Kiacta in co-operation with U.S. and European regulators. It is intended to treat Amyloid A, a rare but devastating disease that attacks kidney function and can be fatal. The international trial begins late in 2008 covering 150 patients for 24 months. Full ownership has been acquired from Centocor Inc.
Bellus also has NC-503 to treat Type II diabetes in Phase II studies.
"We'll be spending significantly less this year because we no longer have the burden of developing Alzhemed for Alzheimer's disease," Bellini said.
Last year, Phase III trials of Alzhemed failed to show the drug was of significant benefit to Alzheimer's patients. Bellini said there were serious statistical problems with the data and so the results were inconclusive.
But the regulators said the methods and knowledge could be used in another trial, but this would have had to cover 5,000 patients, take five years and cost $100 million or more.
Bellus has about $45 million of cash to handle the commercialization of Vivimind and for its research pipeline. The company inherits a total staff of about 160, including 45 to 50 researchers, but the research function will decline slightly over the next few months, Bellini said.
New financing may be needed and the company will have the general support of Picchio Pharma, the joint venture of Bellini and the Desmarais family of Power Corporation of Canada, which is the major shareholder with about 28 per cent. Picchio has invested about $100 million in the company since it bought the former Neurochem late in 2002.
"I've personally invested $50 million," Bellini said.
"Building a profitable biopharma company takes time, money, dedication and patience," Bellini told shareholders, who have seen Neurochem shares range from $30 to below $2 over two years.
In 16 years, Bellini built BioChem Pharma into Canada's top biotech performer by developing the 3TC AIDS and Zeffix hepatitis drugs. BioChem was later sold to Shire Pharmaceuticals of Britain for $5.6 billion in stock. Bellini received shares then worth $255 million.