John Brooks

Newly public ImaSight Corp. is considering selling off the main technology of Liponex Inc., the company with which it recently merged through a reverse takeover.

The Gatineau-based digital X-ray maker, which swallowed up Ottawa's Liponex in June, said today that three companies have expressed an interest in acquiring Liponex's CRD5 drug technology, which treats heart disease by raising 'good cholesterol' or high-density lipoprotein (HDL) levels in the body.

ImaSight CEO John Brooks said the company was "evaluating the discussions," and noted that talks were still in the early stages and might not end in a sale, as the standard approach is for the major company to license the technology of the smaller company and work with the existing scientists on the further development of the drug.

Prior to the merger with ImaSight, Liponex had a run of bad luck that began with the discovery that the new formulation of its CRD5 drug was only showing positive results with patients who were also taking medication to control stomach acid. Then, Liponex announced that it was discontinuing trials after seeing no significant results with its mini-pig animal models.

"Following these results, the marketplace sort of valued the Liponex technology as failed," said Mr. Brooks in an interview. "I disagreed with that analysis and I think recent evidence of several companies coming to us expressing interest in the technology verifies there is some significant value, and we intend to realize that for shareholders."

The company also noted that it had filed for patent protection which would expand the current coverage for CRD5 to include more molecules and the method of action by which phospholipids work. It added that its drug could also help in the prevention of Alzheimer's disease by "impact(ing) specific pathways."

ImaSight said Liponex intends to work with the University of Ottawa Heart Institute to seek grant funding to explore the applications of CRD5 to anti-inflammatory therapeutics.

Mr. Brooks added that the company is looking to reach the letter of intent stage for the Liponex technology by sometime in the fall, should the talks result in a purchase offer.