The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: January 11, 2010

The busy pace for Canadian biotech deals set at the end of 2009 continues into 2010. After the jump, 3 licensing agreements, 6 securities deals (though it’s 5 closing, one launching) and a PMA.  You may even find redemption if you

Licensing Agreements

ProMetic Life Sciences Inc. (TSX: PLI) entered into a collaboration agreement with Abraxis Bioscience, Inc. (NASDAQ: ABII) for the development and commercialization of various of ProMetic’s prion capture technology. Abraxis and ProMetic say they “will share equally in commercialization costs and financial reward stemming from such development,” but no other financial terms were disclosed.

Medical diagnostic company Miraculins Inc. (TSXV: MOM) entered into a “collaborative research and option” agreement with Inverness Medical Innovations (NYSE: IMA) to commercialize Miraculin’s proprietary set of 35 biomarkers associated with placental development and preeclampsia.  Inverness will research and develop the technology, as well as pay a non-refundable fee to Miraculins for the exclusive option to license and commercialize any biomarkers of interest from the program. Inverness can exercise its option at any time for the payment of additional fees, developmental and commercial milestone payments, and royalties.  Miraculins also amended their License Agreement with Mount Sinai Hospital.  In exchange for “certain amendments” to the royalty payment and fee structure arrangements, Miraculins will issue 250,000 common shares to Mount Sinai if and when Inverness exercises the option.

Electronic medical record application service provider Nightingale Informatix Corporation (TSXV: NGH) signed an exclusive license with Canadian Patient Access for CPA to be the distributor of Nightingale’s patient portal, Priority Access. Nightingale will receive up-front cash and stock as well as on-going royalties, all in undisclosed amounts. CPA also has non-exclusive rights to market other Nightingale products.

Securities

Private company Heart Force Medical Inc., a Vancouver, B.C. developer of non-invasive cardiac assessment devices, closed its private, non-brokered financing for net proceeds of $4.8 million.  Terms of the offered securities were not disclosed.

Neovasc Inc. (TSXV: NVC) launched a $1 million private placement of 3.7 million units at $0.27 per unit, with another $1 million over-allotment to fund its Coronary Sinus for Treatment of Refractory Angina (COSIRA) trial. Each unit will consist of one common share and one-half of a ($0.40 1-year) warrant.

As we noted on Twitter at the time, Haemacure Corporation (TSX: HAE) areceived a TSX delisting notice,  and will be delisted at the close of market February 5, 2010 for failing to meet the TSX’s continued listing requirements including, among other things, the financial condition of listed companies. Haemacure said that in light of its financial condition, it does not intend to appeal or seek listing on another stock exchange.

BioSyntech, Inc. (TSX: BSY) exercised its option to issue 8,265,921 common shares to holders of its 2008 Debentures in payment of $739,800 in interest due December 31, 2008 on the principal amount of $12,330,000. The 12% subordinated secured debentures were issued July 15, 2008 and July 18, 2008, and mature March 31, 2010.

Resverlogix Corp. (TSX: RVX) completed its redemption of outstanding convertible notes 2.5 years prior to maturity, confirming US$6.728M principal amount redeemed.

Labopharm Inc. (TSX: DDS) (NASDAQ: DDSS) settled its draw down of $1 million under the standby equity agreement with YA Global Master SPV Ltd. Labopharm issued 482,165 common shares at a price of $2.07 each — a 5% discount to the 10-day VWAP following Labopharm’s draw-down notice. Labopharm has filed a prospectus supplement to qualify the issued shares.

OBP’s PMA filed with FDA for PPS for CP

Ondine Biopharma Corporation (TSX: OBP), developer of photodisinfection products, filed a PMA with the FDA for its Periowave Photodisinfection System for the treatment of chronic periodontitis.

Thanks again to Jacob Cawker, who is also continuing a strong 2009 by offering his invaluable assistance with the Deal Review in 2010.

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3 responses to “Monday Biotech Deal Review: January 11, 2010

  1. Pingback: Monday Biotech Deal Review: February 1, 2010 « The Cross-Border Biotech Blog

  2. Pingback: Monday Biotech Deal Review: February 15, 2010 « The Cross-Border Biotech Blog

  3. Pingback: Monday Biotech Deal Review: February 22, 2010 « The Cross-Border Biotech Blog

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