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pSivida sells diagnostics subsidiary
BOSTON — pSivida is selling its subsidiary, AION Diagnostics, to the portfolio management company GEM Global Yield Fund for two payments of $1.5 million, the company announced in a press release.
GEM will make the first payment to pSivida upon completion of an initial public offering of AION's stock on the Frankfurt Stock Exchange. The second payment is due within 12 months after the transaction closes. In exchange, GEM will acquire pSivida's entire holdings in AION, the release said.
Under a licensing agreement, AION holds exclusive rights to pSivida's nonelectronic imaging diagnostic applications for its BioSilicon technology, which is a porosified or nano-structured silicon with drug delivery, wound healing and other medical applications. pSivida will still receive royalties from any products successfully developed and commercialized using the technology, according to the release.