The Cross-Border Biotech Blog

A big dose of Canadian deals and company info from this week

M&A/Licensing:

• Æterna Zentaris Inc. (TSX: AEZ, NASDAQ: AEZS), based in Québec, signed a development, commercialization and licensing agreement with sanofi-aventis (EURONEXT: SAN; NYSE: SNY) for the development, registration and marketing of cetrorelix in benign prostatic hyperplasia (BPH) for the U.S. market. Cetrorelix, a luteinizing hormone-releasing hormone (LHRH) antagonist, is currently in Phase 3.  Terms:
  • $30 million upfront payment and $135 million in additional milestone payments;
  • escalating double-digit royalties on future net sales of cetrorelix for BPH in the United States;
  • sanofi-aventis will be responsible for the commercialization and booking of sales in the U.S.; however, AEterna Zentaris has retained certain U.S. co-promotion rights;
  • sanofi-aventis may perform future Phase 3b and Phase 4 clinical trials, while AEterna Zentaris will have free access to all data for other territories.
• Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) is acquiring an inactive private company that has accumulated tax losses from its previous development business, and is expected to have approximately $2.3 million in net cash available at the closing of the transaction.

Securities:

• Isotechnika Inc. (TSX: ISA) repaid 70% of the principal amount of a $13 million USD loan issued by Oxford Finance Corporation and Silicon Valley Bank in June 2008, resulting in interest savings to Isotechnika of approximately $920,000 USD over the remaining life of the loan. Apparently, “the additional funds are no longer required.”
• Isis Pharmaceuticals Inc. (NASDAQ: ISIS) announced that it acquired 2,150,000 units of iCo Therapeutics Inc. (TSX-V: ICO), presumably as part of the second tranche of the deal we first mentioned in February.  Isis now owns an aggregate of 3,955,900 common shares of iCo, representing approximately 14.0% of iCo’s issued and outstanding common shares (17.2% of iCo’s issued and outstanding common shares if all warrants were exercised), “for investment purposes.”
• BioMS Medical Corp (TSX: MS) extended the exercise term of 11,500,000 warrants for Class A common shares at a price of $5.00 per share, from March 23, 2009 to December 31, 2009.  Just shy of a million of the warrants are held by insiders, so extension of those was approved at the company’s AGM.
• Jovian Capital Corporation (TSX: JOV) shareholders  approved the proposed consolidation of Jovian’s common shares at a ratio up to 20:1. 

Credit/Lending:

• Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI, TSX: ANP) announced that it has a new Senior Secured Term Loan and Revolving Credit Facility.
• Bioniche Life Sciences Inc. (TSX: BNC) announced that it has amended the maturity date of its existing secured revolving credit facility with Valens U.S. (formerly Laurus Master Funds), from March 2, 2009 to “on demand.”
• Sustainable Development Technology Canada (SDTC), which extends grants and loans to cleantech projects, funded 16 new projects this week, including one to Performance Plants Inc., an agricultural and biofuel technology development company, whose patented technologies weatherproof food and non-food biofuel crops through periods of drought and heat stress resulting in more abundant, consistent and cost-effective harvests for farmers, and feedstock suppliers.

 The Case of the Caisse:

• The Caisse de dépôt et placement du Québec welcomed its new Chairman, Robert Tessier, this week, after facing three ratings updates issued since the Caisse announced its 2008 results (which were not pretty, if you hadn’t heard or guessed).  Here’s hoping for a better 2009.

 Milestones:

• InNexus Biotechnology Inc. (TSXV: IXS; NASD OTC:BB: IXSBF), a drug development company commercializing the next generation of monoclonal antibodies based on its Dynamic Cross Linking (DXL™) technology, had patents allowed in the U.S. and India this week.  They also announced the FDA completed its review of the development plans for their lead preclinical candidate, DXL625 (CD20) for the prospective treatment of Non-Hodgkin’s Lymphoma (NHL) and/or Chronic Lymphocytic Leukemia (CLL).
• Quest PharmaTech Inc. (TSX-V: QPT), a pharmaceutical company developing and commercializing products for the treatment of cancer and dermatological conditions, announced results from a recent study designed to investigate its product, SL052, in combination with immunotherapeutic agents in solid tumor animal models.
• Enobia Pharma, a private Montreal-based biotech company focused on developing novel therapeutics for serious bone disorders, completed enrollment in its pilot clinical trial in infants suffering from a severe form of hypophosphatasia.

Trouble:

• Bradmer Pharmaceuticals Inc. (TSX: BMR), announced that it will implement a restructuring plan to conserve existing cash resources.
• Fralex Therapeutics Inc. (TSX: FXI) had its delisting review extended for 30 days.