Bioniche Life Sciences Inc. is preparing to sell its animal
health division after shareholders staged a revolt.
It’s the only part of the company that’s making money,
selling vaccines for horses and cattle, including a vaccine to counter E. coli
0157:H7.
Graeme McRae, the founder and chief executive officer, is
moving on to become “chairman emeritus”.
A new chief executive officer will be chosen “in the near
future,” the board of directors has said in a deal to avert what the Globe and
Mail calls “a nasty proxy battle”.
The dissident shareholders are led by Bill Wells, former
chief executive officer of Biovail Inc., and his business partner, Greg Gubitz.
They had opposed the sale of the animal health division, but
now say they will support it.
Bioniche is trying to bring human-health products to market
but so far they have been only a drain on company resources.
When the animal health division is sold, some of the money
will be distributed to shareholders either through dividends or offers to buy
back shares.
