The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: March 8, 2010

A busy week in Canadian deals, with Paladin Labs in a global transaction with SpePharm; M&A activity from therapeutics and consulting companies; the last of the SIFT/SR&ED deals; over $20 million of new offerings from BioSign, Bradmer and YM; government funding for Medicago and Isotechnika; a new standby equity deal from Yorkville for Allon; and the closing of the first deal of the rest of BioMS’ new life.

Paladin Labs’ SpePharm Tie-Up, Normal Course Issuer Bid

Paladin Labs Inc. (TSX: PLB) announced a strategic investment in SpePharm Holding B.V., which acquires, registers and markets specialty medicines throughout Europe.  Paladin will invest €4 million through a secured convertible debenture.  Conversion would provide Paladin with an approximate 10% equity interest in SpePharm. 

On the licensing side, Paladin will get exclusive rights to Savene® for South Africa and Israel and SpePharm and Paladin also grant each other reciprocal rights in their respective geographies flowing from future product acquisitions or licensing transactions.  Paladin may also place a representative on SpePharm’s supervisory board.

Paladin also announced TSX approval to carry out a normal course issuer bid, authorizing Paladin to purchase up to 1,102,000 common shares (approximately 10% of its public float) for twelve months beginning March 3, 2010.

M&Eh

Securities

Government Funding

BioMS-Spectral, etc.

Spectral Diagnostics Inc. (TSX: SDI) received shareholder approval for its private placement 48,750,000 units for gross proceeds of $19.5 million.  Shareholders also approved of the proposed issuance of 2,890,625 common shares to GrowthWorks Canadian Fund Ltd., at a deemed price of $0.40 per common share, as full repayment and final settlement of a non-interest bearing, unsecured promissory note in the principal amount of $1,156,250 dated June 19, 2006.  Spectral subsequently announced the closing of the private placement.  BioMS Medical Corp. (TSX: MS) announced it had acquired over 30,000,000 common shares and 15,000,000 common share purchase warrants of Spectral pursuant to the above private placement, giving BioMS a 39.57% equity interest in Spectral, and a 49.55% equity interest if BioMS exercises all of its common share purchase warrants in Spectral.

Thanks again to Jacob Cawker for help with this week’s Deal Review!

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4 responses to “Monday Biotech Deal Review: March 8, 2010

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

  2. Pingback: Monday Biotech Deal Review: March 29, 2010 « The Cross-Border Biotech Blog

  3. Pingback: Monday Biotech Deal Review: April 26, 2010 « The Cross-Border Biotech Blog

  4. Pingback: Monday Biotech Deal Review: January 10, 2011 « The Cross-Border Biotech Blog

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