PHL had subscribed to common shares of BioSyntech in FY2006 which then constituted 17% of equity of BioSyntech.

By virtue of the investment, PHL had exclusive marketing rights for the marketing, sales and distribution of current and future products of BioSyntech, for India and some neighboring Asian markets.

BioSyntech has been unable to raise further capital to fund its ongoing operations and to repay maturing debt. As a result, the company has sought court protection under insolvency proceedings. Taking into consideration PHL’s interests in the projects of BioSyntech, PHL made a binding offer and the Superior Court of Quebec (Canada) allowed the Interim Receiver to accept the offer.

BioSyntech’s platform technology is a family of hydrogels like BST-Gel and some of which are liquid at low temperature and solid at human body temperature. It is the only substitute available for knee replacement surgery.

The gels can be injected or applied to a specific local site and offer beneficial properties for the local repair of damaged tissue such as cartilage, bone and chronic wounds and provide the benefit of avoiding invasive surgery. The company’s late-stage product, BST-CarGel is currently undergoing an international pivotal trial.

Ajay Piramal, chairman of Piramal Group said: “BST-Car Gel is a one stage application that can be performed arthroscopically and is the only potential substitute available for knee replacement surgery. This treatment also promises to be significantly less expensive than current alternatives.”