Vancouver's Forbes Medi-Tech Inc. (TSX:FMI) has sold its pharmaceutical assets and business unit based in San Diego, California, to Transition Therapeutics Inc. (TSX:TTH) for an upfront cash payment of US$1 million.
Forbes could also earn future payments of up to US$6 million in cash or Transition shares based on developmental and regulatory milestones outlined in the sale agreement.
Forbes acquired the assets in October 2006 when it bought Therapei Pharmaceuticals.
In May, Forbes decided to get out of pharmaceutical development and focus on its nutraceutical business, which is centred on its Reducol cholesterol-reducing additive.
Forbes' share price range during the past week: between $0.94 and $0.97; 52-week high: $1.34; 52-week low: $0.79.