Axcan Sells Biopharm Subsidiary

Canadian company Axcan Pharma has signed a letter of intent to sell itsBiopharm Laboratories subsidiary to fellow Canadian firm Warnex Pharma Inc for a consideration of C$2 million ($1.4 million) to be paid in cash at closing, which is expected in April of this year. A small portion will be paid in Warnex shares.

At Axcan's option, the Laval building occupied by Biopharm will either be sold to Warnex or leased to it on a long-term basis. Axcan will remain an important client of Biopharm analytical services.