The Cross-Border Biotech Blog

The Monday Deal Review is back in full force this week following a Labo(u)r Day vacation last week and there’s plenty of news including more information on the MDS-Danaher transaction and plenty of other companies finding ways to raise money and keep the lights on.  Keep reading
M&A

Earlier this week we blogged about MDS Inc.‘s (TSX: MDS; NYSE: MDZ) plans to sell MDS Analytical Technologies to Danaher Corporation (NYSE: DHR).  MDS announced the meeting date (October 20) and the record date (September 14… today!) for the meeting seeking approval of the sale and also rolled out voting support agreements from shareholders totalling 23% of the common shares.  Here’s FierceBiotech’s take on the deal, noting that it’s part of  a larger play by Danaher, which is also paying $450 million for Life Technologies’ half of the Life Technologies-MDS mass spectrometry JV.

Collaboration

Nuvo Research Inc.(TSX: NRI) announced a co-operative drug development project with the Fraunhofer Institute for Cell Therapy and Immunology IZI in Leipzig, Germany for the preclinical and clinical development of WF10, Nuvo’s immune modulating drug candidate, for Allergic Rhinitis. The Development Bank of Saxony in Germany will provide financial support for the project, which may be expanded to include support for preclinical and clinical development of WF10 as a potential treatment for Rheumatoid Arthritis.  Nuvo has a history of successful out-licensing to build on now, having sold rights to its Pennsaid product line in June.

Securities Offerings

• Noveko International Inc. (TSE: EKO), which makes medical devices and antimicrobial products, engaged Desjardins Securities Inc. as lead Agent to sell approximately C$10 million of Units (one Class A Share and one-half of one Class A Share purchase warrant) pricing per unit TBD.
• Cardiome Pharma Corp. (NASDAQ: CRME) (TSX: COM) mailed the offer to purchase to its shareholders in connection with its previously-announced $27.5 million buy-back.  Here are the docs on EDGAR.
• BioSyntech, Inc.(TSX: BSY) filed the final prospectus for its $3.1 million rights offering, part of its $4.5 million capital-raising plan.  The prospectus is on SEDAR here.
• Urodynamix Technologies Ltd. (TSX-V: URO) launched a $1,500,000 offering of common shares at $0.05 per common share, with over-allotment possible up to $2 million. BC Advantage Funds signed up for $750,000.  The 7.5% commission excludes investment by current shareholders, including BC Advantage Funds.

MedMira Merrily Goes Around

MedMira Inc., (NASDAQ: MMIRF, TSX-V: MIR) completed its latest equity line draw-down, issuing 2,604,639 common shares at an average price of $0.0576.

Offerings Closed

• Cannasat Therapeutics Inc. (TSXV: CTH) completed the second tranche of a previously announced offering of units, selling an additional 1,789,000 units at $0.10 per unit raising $178,000 in gross proceeds. The units consist of one common share and one (2-year $0.15) warrant.  The first tranche sold 7.5 million units.
• Helix BioPharma Corp. (TSX, FSE: HBP; OTCQX: HXBPF) announced and closed a private placement of 6,625,000 units at $2.05 per unit. Units are one common share and one (3-year $2.87) warrant.  Gross proceeds were $13,581,250 and net proceeds are expected to be approximately $11.7 million.
• Bradmer Pharmaceuticals Inc. (TSX: BMR) completed its substantial issuer bid to purchase up to 8.3 million common shares for cancellation at $0.20 per share. At the expiry of the offer on August 28, 7.5 million shares remain eligible to be purchased if received by September 2, 2009. If 7.5 million shares are bought, Bradmer will have 5.99 million shares outstanding. In that case, shareholders are advised to report if they hold more than 599,000 shares (10%).
• BELLUS Health Inc. (TSX: BLU) found takers for C$9,687,233 of its $12 million rights offering.  It will issue a total of 52,363,419 common shares at a price of C$0.185 per share. Under the rights offering, rights were exercised to subscribe for 9,120,177 common shares at the Subscription Price for proceeds of C$1,687,233. Additionally, in accordance with the terms of the stand-by purchase agreements with Vitus Investments III Private Limited and Victoria Square Ventures Inc., BELLUS will issue 21,621,621 common shares at the Subscription Price for an aggregate of C$8,000,000.
• Microbix Biosystems Inc. (TSX: MBX) closed the private placement that they announced a couple of weeks ago, raising a bit over $750,000 and paying 300,000 (18-month, $0.35) warrants as a finders fee.

Prof. Moneypants, May I Please Have An Extension?

• Medicure Inc. (TSX: MPH), developer of small molecules for the treatment of cardiovascular and neurological disorders, has reached an agreement with a lender to again defer payment under a secured debt financing agreement (amounting to a deferral of US$2.0 million in obligations), allowing the company to try and improve financial performance, explore restructuring and develop a strategy for AGGRASTAT®, a treatment for acute coronary syndrome. The deferral period will last until the earlier of November 5, 2009 or otherwise five days following written notice by the lender.
• MethylGene Inc. (TSX: MYG) announced that Otsuka Pharmaceutical Co. Ltd. has extended its funded research collaboration with MethylGene for an additional six months, providing an additional US$625,000, retaining its right to make further extensions. Otsuka will also, per the terms of the original agreement, make a US$1.5 million equity investment in MethylGene by the end of October.
• Akela Pharma Inc. (TSX: AKL) has been working on a lot of ways to stay above water: its merger with Nventa, its renegotiation with Teikoku Seiyaku, and its settlement with Tekes.  Last week it took a number of more drastic restructuring steps.  We noted the CEO switch on Twitter and FierceBiotech has the rest of the goods: 32 layoffs and lots of executive staff changes.

Thanks again to Jacob Cawker for help with the post!