Bellus Health shares rise on Innodia buyout

Bellus' stock rose 9 cents, or 9.4 percent, to close at $1.05. Shares have traded between 94 cents and $7.51 over the last 52 weeks.

Bellus, which switched its name from Neurochem in April, said it is buying 100 percent of Innodia's capital stock and the deal includes debt.

"Bellus Health's acquisition of Innodia is a timely opportunity because it allows the company to gain access to Innodia's expertise and rights in diabetes and obesity at an attractive price and will help accelerate our own projects in diabetes and expand our pipeline through Innodia's identified candidate leads," said Dr. Francesco Bellini, chairman, president and chief executive at Bellus.

Meanwhile, Bellus is moving its Type 2 diabetes and metabolic syndrome drug candidate NC-503 into midstage development. Interim results from that 26-week study is expected in late 2008 or early 2009.

As Neurochem, the company struggled with its drug development program for an experimental kidney condition drug. Eprodisate, or Kiacta, faced two requests for additional information by the Food and Drug Administration before the regulatory agency accepted the application.