The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: May 24, 2010

The lead up to the long weekend here in Canada (Victoria Day, in case you’re wondering where we all went) saw only one new financing and two new commercial deals. A few more deals that were launched earlier closed this week, including MethylGene’s SR&ED financing; but stay tuned for an uptick next week as we move fully out of earnings reporting doldrums. In the meantime…

Securities

Medipattern Corporation (TSXV: MKI) closed a $1,800,000 convertible note financing. The 2015 notes bear 10% interest, payable semi-annually, and convertible into common shares at $0.20 per share. Proceeds of the financing will fund the continued North American roll-out of its B-CAD-FOR-LIFE™ medical software tool created in partnership with GE Healthcare. Medipattern has the option to convert certain payments to principal or pay with equity, and can call the notes at par following the second anniversary. The notes will be automatically converted if the common shares trade at a 300% premium to the $0.20 strike price for a period of 30 consecutive days.

MethylGene Inc. (TSX: MYG) closed the previously announced $9.1 million SR&ED deal (covered  here), following shareholder approval.

IntelGenx Technologies Corp. (TSXV: IGX) has granted options to acquire 75,000 common shares to Mr. Bernd Melchers, a non-employee director, under the 2006 Stock Option Plan. The options have an exercise price of $0.47, vest immediately, and expire in five years.

Licensing and Commercial Deals

GeneNews Limited (TSX: GEN) announced that it has executed a binding term sheet with GeneDiagnostics Inc., a Chinese clinical research and services company, for the non-exclusive right to market ColonSentry™, a blood-based test to determine a person’s risk of colorectal cancer, in the city of Shanghai, and the Zhejiang, and Jiangsu provinces.  GeneNews expects that a formal marketing partnership agreement will be completed before the end of the current fiscal quarter.

Strata Health Solutions Inc. and Medworxx Inc. (TSXV: MWX) have formed a partnership to provide a full view of the patient flow cycle, for both in and out of the hospital. Medworxx’s Utilization Management System (UMS) and Bed Optimization System (BOS) focus on patient flow within the acute care setting. Strata Health is focused on transactional patient flow from the point of acute care discharge. The contributions by the partners will allow regional healthcare organizations and Local Health Integration Networks (LHINS) to improve the patient flow process.

Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) has completed the previously announced transaction (covered here) to form a joint venture with Gruppo Angelini, called “Angelini Labopharm”. The joint venture will launch OLEPTRO™, Labopharm’s novel once-daily formulation of trazodone, indicated for the treatment of depression, in the U.S. in third quarter of 2010.

Thanks to Ogilvy summer student Keldeagh Lindsay, who will be helping out with the Deal Review for the next few months.

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One response to “Monday Biotech Deal Review: May 24, 2010

  1. Pingback: Monday Biotech Deal Review: July 5, 2010 « The Cross-Border Biotech Blog

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