This week’s deal review shows no signs of a holiday showdown. In Canada, BioMS’ deal with Spectral Diagnostics was interesting as a possible indicator of more to come and internationally, 5 new pharma deals were announced this morning including a $430 million deal that OncoGenex landed from Teva joining new links between Athersys and Pfizer, Lilly and Incyte, sanofi-aventis and Chattem and Seattle Genetics and GSK. Check out the past week’s Canadian deal-making (and breaking)
Thallion’s Busy Week
Thallion Pharmaceuticals Inc. (TSX: TLN) signed a binding LOI with French company LFB Biotechnologies for the development of Shigamabs, Thallion’s product candidate for the treatment of Shiga toxin-producing bacterial infection. The partnership is subject to executing definitive agreements anticipated in first quarter of 2010, but the LOI provides for immediate funding by LFB of costs associated with the Shigamabs program. Under the agreement, LFB will receive commercial rights in Europe and South America, while Thallion retains rights to North America and the rest of the world. Thallion can receive payments of up to approximately $150 million, including an up-front licensing fee of up to approximately $2.3 million, plus royalties. Thallion will continue to be responsible for the development of Shigamabs, while LFB will be responsible for manufacturing and supply.
Thallion also sold a subordinated promissory note it was holding back to the issuer — Caprion Proteomics Ltd. — for an immediate cash payment of $1,850,000. The note was originally issued by Caprion to Thallion as part of the proceeds pursuant to the sale of Thallion’s proteomics business. Thallion will continue to retain its approximate 16% equity stake in Caprion.
Other Licensing and Commercial Agreements
TSO3 Inc. (TSX: TOS) announced a supply and distribution agreement with 3M Company (NYSE: MMM) for TSO3’s sterilizer systems. Terms of the deal were not disclosed, but do include some up-front license fee and milestone payments for regulatory clearance achievements as well as minimum annual purchases. TS03 Inc. also announced Health Canada approval of the sterilizer system for sale in Canada. The device will be made available through 3M Canada‘s distribution in 2010.
YM Biosciences (TSX: YM) and Therapure Biopharma announced that Therapure will provide fill and finish services for nimotuzumab, YM’s oncology monoclonal.
Victhom Human Bionics Inc. (TSX: VHB) restructured its agreements with partner Ossur and sold certain Biotronix assets to Ossur for US$500,000. Ossur will now take over the final stage of development and preparation for the commercial launch of the second generation Power Knee.
Resverlogix Corp. (TSX: RVX) signed a non-binding term sheet for a standby equity distribution agreement with a Yorkville Advisors fund. Resverlogix will have the option, at its discretion, to issue and sell up to $25 million of its common shares to to the fund, which would be obligated to buy up to $500,000 of any such shares in any ten-day period at a discount to market price. Full details as to the terms of the agreement will be disclosed on closing.
Medicago Inc. (TSXV: MDG) announced that it has converted its 16,100,000 subscription receipts (TSXV: MDG.R) into an equal number of units (one common share plus 1/2 of a $1.00 warrant exercisable through November 26, 2010). Following the conversion, Philip Morris will hold 39.35% of the outstanding common shares of Medicago and 50.3% of the common share purchase warrants.
SemBioSys Genetics Inc. (TSX: SBS) won approval from its securityholders for its plan of arrangement involving a reorganization with Cathedral Energy Services Income Trust and closed the deal later in the week.
Board Changes at LAB Research as Solidarity Fund QFL Nominees Come In
LAB Research Inc. (TSX: LRI), a Canadian-based non-clinical contract research organization, announced the nomination of Mr. Yvan Landry as a new Board member, and the resignation of Mr. Richard Lacombe. Mr. Landry is a certified management accountant and employee of the Solidarity Fund QFL, which has the right to nominate two individuals to the Board of LAB, including one employee of the Fund.
Bad News Last
Ambrilia Biopharma (TSX: AMB) shut its facility and let a bunch of its remaining people go this week.
ALERT B&C Corporation (TSXV: ACB) announced that it’s closing its Montreal facilities and eliminating the employee positions to conserve cash.
Transition Therapeutics (NASDAQ: TTHI, TSX: TTH) and Elan are pulling the two higher dose arms of the Phase II trial of ELND005 following adverse events. The entire trial ends in April and the companies will reassess at that point.
Æterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZ) and sanofi-aventis U.S. (NYSE: SNY) are terminating their development and commercialization license for cetrorelix, following the results for its European Phase 3 study for cetrorelix in BPH.
Thanks again to Jacob Cawker for help with this week’s deal review!