QUEBEC CITY, May 30 /CNW Telbec/ — PEGASE MEDICAL Inc., a new company in the health sector, is now established in Quebec City. This company is specialized in the development and the distribution of natural base products for the animal health market.

Pegase starts with early-stage equity and bank capital investments totalling $ 3 millions from funds based in Quebec and in Europe, such as Innovatech Québec, Fonds Bio-Innovation s.e.c., Lodial Capital and Benoit Côte's personal investment holding.

"Our business model is unique and fits the dynamics of major pharmaceutical companies towards botanical drugs and nutraceuticals. We have a pipeline of products under development but we also generate revenues with our distribution unit. The animal health sector, particularly companion animals, keeps expanding and is the starting point for the migration of some products and drugs to the human sector", says Benoit Côte, President, Chief Executive Officer and Chairman of the Board. "We are presently working on a growth-by-acquisition strategy and a quick migration to the human health sector to combine the animal and human applications as a powerful leverage in terms of financial valorization, to enlarge our range of products and overcome the technical and regulatory barriers", concludes Benoit Côte.

"Our investment was motivated by the strength of the business plan and the scientific and commercial qualities of the project. We are pleased to build this new partnership with Benoit Côte and his team with whom we have already been very successful in the past", says Francine Laurent, Director, Chief Executive Officer of Innovatech Québec.

"Pegase is the first project in the animal vaccine field to be financed by Fonds Bio-Innovation. According to us, this new company is based on a winning formula: an innovative technology in life sciences issued for the CHUL/CHUQ (Centre hospitalier de l'Université Laval/Centre hospitalier universitaire de Québec) and an experienced founder and CEO", adds Jean-Maurice Plourde, President and Chief Executive Officer of Gestion Bio-Innovation Inc. and CQVB.

Pegase's experienced team relies on a product development model by outsourcing with companies specialized in the sector and collaborations with universities. "Our team is dedicated to the execution of a very dynamic development and commercialization plan. We have already signed several agreements and we believe that the sector of botanical products and drugs will need to be consolidated through various strategic alliances. We want to be actively involved", concludes Benoit Côte.

ABOUT PEGASE MEDICAL

The development and commercialization of nutraceuticals and botanical drugs for the animal sector is already operational both in terms of development and commercialization.

Development Unit - 2 Innovative Products, 2 Huge Markets

Pegase Medical concluded worldwide License rights to develop and commercialize a potentially universal vaccine, treating any strain of influenza, including avian flu. This innovative technology of botanical adjuvant already showed favorable efficiency results. Pegase also signed development and commercialization agreements for the North American market of a botanical product targeting two huge markets: anti-inflammatory and pain management. This product is already sold in some European countries.

Distribution Unit - Leading Products for Companion animals

Pegase Medical owns the exclusive distribution rights for the products developed by the Belgian Nutriquine and for its branding Cavalor for Canada. Cavalor products are considered as the most reliable and efficient products in equine health. Sold in Europe for 15 years, these scientifically developed and many times tested products were not available in North America until now. Francis Berger, equine expert and partner of Pegase Medical holds the position of General Manager of this unit.
www.cavalor.ca

Pegase Medical also concluded agreements for the exclusive North American distribution rights of the products developed by Wamine for dogs and cats. Wamine is a well-known French company, that distributes a range of botanical products prescribed by French veterinarians. All those products are based on a micro-nutrition concept and are scientifically supported by Wamine.

About Innovatech

Innovatech Quebec is a $125 M early stage venture capital fund owned by the Government of Quebec. Innovatech invests in emerging technology-intensive companies in Information technology and telecommunications, life sciences, and advanced applied technologies.
www.innovatechquebec.com

ABOUT FONDS BIO-INNOVATION S.E.C.

Fonds Bio-Innovation is a limited partnership whose general partner is Gestion Bio-Innovation Inc., a CQVB subsidiary. Its backers are the Fonds de Solidarité FTQ and the CQVB. Fonds Bio-Innovation s.e.c. offers financing for biotechnology enterprise start-ups in Quebec, business structuring, proof of concept, prototype development, intellectual property protection, identification of competitive advantage, market niches and marketing strategy.
www.fondsbio-innovation.com

For further information:
Benoit Côte,
(418) 653-3423,
Benoit.cote@pegasemedical.com