The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: October 25, 2009

B&W_BigNickelA very busy deal week coincided with a very busy work week (for those of us with day jobs), so allow me a particularly grateful thank-you to Jacob Cawker, who’s been an invaluable help with the Deal Review this and the last several weeks.  After the jump, licenses both inbound, outbound and just tied up (optioned); securities extended and accelerated (plus an actual common share offering, with the word “units” banished for one special week); and last but not least, a good volume of Canadian M&A (M&Eh?) from private to public to “just browsing.” 

Licensing and Commercial Deals

  • Sonomax Hearing Healthcare Inc. (TSXV: SHH) announced the signing of a five-year renewable license agreement with Hearing Coach Africa (Pty).  The agreement specifies minimum quarterly commitments over five years for V3 hearing protectors, totalling a minimum of $1,000,000.  Mining giant BHP Billiton is the first to buy into Sonomax hearing protection under this agreement.
  • Cangene Corporation announced an agreement with Apotex, its largest shareholder, under which Cangene will acquire all U.S. commercialization rights for HepaGam B®, which is approved for treating two Hepatitis-B-related indications in the U.S.  Cangene will pay Apotex a US$7.0 million fee as well as royalties on sales from November 1, 2009 through June 2016.  Cangene manufactures HepaGam B® in its Winnipeg facility.
  • Apotex Corp signed a deal with Hisamitsu Pharmaceutical to bring Hisamitsu’s FDA approved transdermal Fentanyl to the U.S., which they say is a $1.2 billion market.
  • Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ: ONCY) took an option in a Phase II oncology product currently being developed by privately-held British Biosciences Corp.  Oncolytics bought all the convertible preferred shares of British Biosciences in exchange for 200,000 common shares of Oncolytics –at about $3.50 per share leading up to closing, that’s around $700,000 and about 0.4% of Oncolytics.  If Oncolytics converts the pref shares, it would own about 10% of British Biosciences’ commons.
  • Covalon Technologies Ltd. (TSXV: COV), which engineers biomaterials, signed a License Agreement and Services and Supply Agreement with a division of C.R. Bard Inc., permitting the use by Bard of Covalon technology on “certain” products and delivery by Covalon of “various” services.  A bit hard to assess this one, since no financial terms or operational details were provided.
  • QLT Inc. (NASDAQ: QLTI) (TSX: QLT), which just sold its U.S. subsidiary to manufacturing partner TOLMAR, is re-arranging its Visudyne deal with Novartis.  QLT will have exclusive U.S. sales and marketing rights, including rights to all end-user revenue derived from Visudyne sales in the U.S., and Novartis will have marketing and sales rights in all countries outside of the U.S. subject to a 20% royalty until December 31, 2014, and 16% after that through December 31, 2019. QLT will continue to manufacture Visudyne for Novartis for ex-US distribution.

Securities

M&A

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3 responses to “Monday Biotech Deal Review: October 25, 2009

  1. Pingback: Monday Biotech Deal Review: November 2, 2009 « The Cross-Border Biotech Blog

  2. Pingback: Monday Biotech Deal Review: December 7, 2009 « The Cross-Border Biotech Blog

  3. Pingback: Monday Biotech Deal Review: January 4, 2010 « The Cross-Border Biotech Blog

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