The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Monday Deal Review: May 11, 2009

bignickel1Check out the latest Patheon-JLL developments, a licensing deal that looks like a subcontracting arrangement, a plan of arrangement M&A that looks like a license, and the rest of the Canadian deal info from this past week

Patheon-JLL:

Another interesting week for everyone’s favourite Canadian takeover bid:  JLL issued a reminder of the May 7 offer expiry on May 6, and picked up about 35% of the restricted voting shares, but ultimately extended its bid through May 19.  Meanwhile, see if you can sort out who the constituencies are now.  Last week I hypothesized that the two directors elected in place of significant shareholder Viso and CEO Wheeler were JLL nominees, but Patheon issued a press release that appeared to praise the increased independence of the new board.   Patheon also issued a press release correcting the voting count (no change in results) and one acknowledging that Viso and Wheeler had requested a special meeting to remove all (six) non-JLL directors elected at the AGM.

Licensing:

Cangene (TSX: CNJ) entered into an interesting licensing / option / subcontracting deal this week.  It’s bidding on an HHS/BARDA RFP to develop a therapeutic for treating acute radiation syndrome by in-licensing a product from Maxygen, Inc. (NASDAQ: MAXY).  Cangene pays $500,000 for the option to exclusively license Maxygen’s MAXY-G34 — a long-acting version of G-CSF — and will exercise the option and pay license fees if it is awarded the project.

M&A:

Paladin Labs (TSE: PLB) is buying all of the assets of Isotechnika (TSE: ISA), contributing $7 million up front and $4.35 million for the development of voclosporin to a new company, Isotechnika Pharma, formed under the plan of arrangement.  Voclosporin is a next-generation calcineurin inhibitor that Roche dropped out of partnering for transplants last summer, but it just finished a Phase III trial for psoriasis.

Paladin gets 19% of the equity of Isotechnika Pharma and gets commercialization rights in Canada, Mexico, Central & South America, Israel and South Africa.  Isotechnika Pharma keeps the U.S., EU, Japan, etc. and will pay a 12% royalty on those sales to Paladin.  Other revenue streams from the Isotechnika assets will also be split 12/88 Paladin/Isotechnika Pharma.

Securities:

Debt:

 

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5 responses to “Monday Deal Review: May 11, 2009

  1. Pingback: Monday Deal Review: May 25, 2009 « The Cross-Border Biotech Blog

  2. Pingback: Patheon and JLL Head (Back) to Court « The Cross-Border Biotech Blog

  3. Pingback: Monday Deal Review: June 1, 2009 « The Cross-Border Biotech Blog

  4. Pingback: Monday Deal Review: July 8, 2009 « The Cross-Border Biotech Blog

  5. Pingback: Monday Deal Review: June 22, 2009 « The Cross-Border Biotech Blog

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