INTERVIEW-BioMS on hunt for new drug technologies

* BioMS has C$50 million to spend

* Key data expected early next year

* Shares up 5.5 percent at C$2.90

(Figures in U.S. dollars unless noted)

By Scott Anderson

TORONTO (Reuters) - BioMS Medical Corp (MS.TO) is on the hunt for new technologies after the tiny drug company struck one of the largest biotech deals in Canadian history last year.

Flush with cash and itching to get back into the drug development arena, BioMS, known for its multiple sclerosis treatment dirucotide, is seeking a return to that specialty once again, its president and chief executive, told Reuters.

And, unlike a lot of its peers in the Canadian biotechnology space, the Edmonton, Alberta-based company has no cash flow problems.

"It's very nice that we do have some cash in the bank, so that we can take our time and look for some additional technologies in the course of the next year," CEO Kevin Giese said.

"From a cash perspective, I think it's quite nice for us that we don't have to go back to the market for any cash and that we should have some surplus. I think we are quite rare."

Giese said BioMS would probably be looking for clinical development opportunities for auto-immune and central nervous system treatments, which are seen as growth areas.

"Right now, we are looking at some second technologies that we would be interested in possibly picking up in 2009. It's good for us as it is a buyer's market out there."

Giese estimates the company has about C$50 million ($40.5 million) to spend next year, after commitments to partner Eli Lilly (LLY.N) and his own company's overhead are considered.

Biovail Corp (BVF.TO), Canada's biggest publicly traded drug company, shifted its focus to the field of central nervous system treatments earlier this year when it bought privately held drugmaker Prestwick Pharmaceuticals for $100 million.

U.S.-based Prestwick holds the Canadian and U.S. rights to Xenazine, a drug used to treat chorea, an ailment associated with Huntington's disease.

Karen Boodram, an analyst at Pacific International Securities, in Vancouver, British Columbia, said BioMS is in a good position to make acquisitions, given its strong cash position.