pSivida sells AION Diagnostics for $3.6m

Perth-headquartered bio-nanotech company pSivida Ltd has sold its subsidiary AION Diagnostics Inc to US-based private equity group GEM Global Yield Fund for around $3.6 million, following the company's float on the Frankfurt Stock Exchange.

The full text of a company announcement is pasted below

pSivida Ltd is pleased to announce that its subsidiary, AION Diagnostics Inc. will be sold to GEM Global Yield Fund, a portfolio management company.

GEM has agreed to pay pSivida US$3 million, payable in two equal installments of US$1.5 million upon the completion of an initial public offering of AION's stock on the Frankfurt Stock Exchange and US$1.5 million payable no later than 12 months after the closing of the transaction, in exchange for pSivida's entire holdings in AION.

pSivida has exclusively licensed the non-electronic imaging diagnostic applications of our BioSiliconTM technology to AION Diagnostics for which pSivida will receive royalties from all commercialized products.

"We are very pleased with this transaction that follows our recently announced licensing deal with Pfizer and we believe this transaction allows us to continue to focus on our core drug delivery business," said Dr. Paul Ashton, Managing Director of pSivida Limited.