Enterologics Inc., a biotech company that develops probiotics, today announced its acquisition of BioBalance Corp. and its subsidiary BioBalance LLC from New York Health Care Inc. (NYHC), which will give Enterologics ownership of E. coli M17, or Probactrix®, a probiotic product being developed as a biologic drug under an active Investigational New Drug (IND) application.

“By providing us with our first pipeline product, E. coli M17, the acquisition of BioBalance fulfills a key milestone in Enterologics’ business strategy,” Bob Hoerr, Enterologics’ president stated in the press release.

Hoerr said that E. coli M17, when paired with the company’s new formulation technology it is developing with Universal Stabilization Technologies, gives Etnerologics a solid platform to develop its first probiotic biologic drug product.

“The fact that BioBalance was able to establish an active IND for E. coli M17 made it very attractive for acquisition,” Hoerr stated. “This further demonstrates the validity of our planned commercialization of high value probiotics as biologic drugs for specific gastrointestinal (GI) conditions.”

Dr. Hoerr said that the formal development of E. coli M17 could begin quickly once the deal closes, which is estimated to be no later than September 30, 2011. The company also stated its plans to launch manufacturing and begin clinical trials under the IND as soon as possible.

Enterologics will also acquire BioBalance’s portfolio of intellectual property and regulatory filings.

For more information visit www.enterologics.com