BioNexus Gene Lab enters strategic partnership talks with BirchBioMed

KUALA LUMPUR - BioNexus Gene Lab Corp (NASDAQ:BGLC), a $9.22 million market cap diagnostics company with annual revenues of $9.55 million, announced Monday it has entered into a non-binding strategic partnership term sheet with Canadian biopharmaceutical company BirchBioMed Inc.

Under the proposed arrangement, BioNexus would lead BirchBioMed’s upcoming $10 million financing round through a strategic equity investment. The partnership aims to accelerate the commercialization of BirchBioMed’s FS2 topical platform, which uses kynurenic acid for skin regeneration and scar reduction, in Southeast Asian markets. According to InvestingPro data, BGLC maintains a strong liquidity position with more cash than debt on its balance sheet, though the company has shown rapid cash utilization in recent quarters.

The non-binding term sheet outlines that BioNexus would issue common shares representing 4.99 percent of its outstanding shares to BirchBioMed, while receiving 1.5 million common shares of BirchBioMed in return. BGLC’s stock has shown strong momentum, with InvestingPro data revealing an impressive 88% price return over the past six months. Subscribers can access 10+ additional ProTips and comprehensive financial metrics for deeper analysis.

BioNexus would provide market intelligence, regulatory guidance, and assistance in securing licensees and commercialization partners for the FS2 topical cream in Malaysia and Singapore.

"This strategic framework with BirchBioMed reflects our commitment to partnering with leading biotech innovators to bring clinically validated therapies to Asia," said Sam Tan, Chief Executive Officer of BioNexus Gene Lab.

The term sheet includes a 60-day exclusivity and confidentiality period during which both companies intend to negotiate a definitive agreement. The companies noted that there is no assurance a final agreement will be executed or that the proposed transactions will be completed as contemplated.

BioNexus Gene Lab focuses on precision diagnostics, gene-based technologies, and biologics, while BirchBioMed develops treatments for organ fibrosis, topical scarring, and autoimmune diseases. BGLC maintains a healthy current ratio of 3.63, indicating strong short-term liquidity position despite challenging market conditions.

This announcement is based on a press release statement from BioNexus Gene Lab.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.