Ms. Anne-Marie Durand reports

BELLUS HEALTH AND THE AGAHAN GROUP ENTER INTO BROAD LICENSE FOR VIVIMINDA IN THE MIDDLE EAST

Bellus Health Inc. has signed an exclusive licence and distribution agreement with Agahan Ayandeye Pars Inc. (the Agahan Group) regarding Bellus Health's Viviminda, a patented natural health product that has been shown to protect memory function. Pursuant to the agreement, Bellus Health is granting the Agahan Group exclusive distribution rights for Viviminda in Egypt, United Arab Emirates, Pakistan, Iran and certain other Gulf states of strategic importance to the Agahan Group. Bellus Health retains all rights to Viviminda with respect to Israel, Turkey and Saudi Arabia.

The total consideration to be paid by the Agahan Group to Bellus Health consists of an upfront payment, a regulatory milestone payment expected to be received in the next 12 months, commercial milestone payments (should certain mutually agreed-upon sales targets be achieved) and a tiered royalty rate of 15 to 17 per cent, depending on sales. The agreement also provides for Bellus Health to supply the product to the Agahan Group at a preagreed transfer price. The Agahan Group intends to immediately proceed with obtaining regulatory approval for Viviminda in the countries where it has exclusive distribution rights, following which it will move quickly to launch the product through prescribing physicians and direct-to-consumer pharmacy sales.

"This strategic transaction enables us to expand Viviminda's international reach to over 430 million people in these large Middle-Eastern markets. With its in-depth understanding of this region, the Agahan Group is an ideal partner to realize Viviminda's full commercial potential in this market," said Roberto Bellini, president and chief executive officer of Bellus Health. "This transaction fits within our strategy of forming partnerships with strong regional industry players to build a worldwide distribution network for Viviminda. We are pursuing efforts to conclude similar partnerships in other territories around the world," Mr. Bellini added.

"The Agahan Group has always put the utmost importance on providing consumers with products that meet high standards of safety and efficacy," said Dr. Seyed Hashemi, founder and chief executive officer of the Agahan Group. "Viviminda, which is scientifically proven to help support the hippocampus, the specific area of the brain responsible for memory and learning, fits perfectly within our philosophy. It is the ideal product to expand our portfolio into the attractive cognitive health market and we look forward to bringing this product to consumers in the Middle East," Dr. Hashemi concluded.

We seek Safe Harbor.