The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: June 21, 2010

This week saw a slew of licensing and commercial deals, including HIV programs for MedMira in Nigeria and Dignitas in Malawi. On the securities side, Aquinox’s $25 million B round headlined a $47 million week. Rounding out the week is Enerkem’s demonstration project funding, which will go towards reducing emissions from biorefineries.

Licensing and Commercial Deals

Covalon Technologies Ltd. (TSXV: COV) has signed a multi-year expanded agreement with an affiliate of C.R. Bard, Inc. (NYSE: BCR), for Bard to use Covalon’s proprietary coating technology in return for $500,000 USD and royalty payments.

Sonomax Technologies Inc. (TSXV: SHH) has licensed its V4 technology to Creare Inc.  for $10,000 for 1 year, for use in a R&D project for the U.S. Navy. If successful, the companies will work together to license the technology.

MedMira Inc.’s (TSXV: MIR, NASDAQ: MMIRF) strategic business development partner in Africa, has signed an exclusive agreement with the Nigerian Red Cross Society to provide two million MedMira rapid HIV tests under private label. This order is the first of a long-term partnership to enhance public awareness of HIV and HIV testing programs within Nigeria. Financial terms were not disclosed.

Dignitas International signed a US$9,200,000 cooperative agreement with the United States Agency for International Development to fight HIV in Malawi.  This grant will help Dignitas expand programming to 3,100,000 more people in the southern region, where 17% of the population have HIV.

Functional Technologies (TSXV: FEB) has entered into a distribution agreement  with Beverage Supply Group, a division of Brewer’s Supply Group, to market Functional’s Phyterra-branded wine yeast in the U.S. Four strains of yeast, which prevent the formation of wine-contaminating hydrogren sulfide and were developed at UC Davis, will be launched on the West Coast for the 2010 crush, and have been selected for characteristics beneficial to a range of wines. No financial terms were disclosed.

Medicago Inc. (TSX: MDG) has signed a MOU with PT Bio Farma (Persero) to develop Medicago’s plant-based Virus-Like Particles technology for selected vaccine targets, with the goal of establishing a plant-base vaccine manufacturing facility in Indonesia. No financial terms were disclosed.

SQI Diagnostics Inc. (TSXV: SQD) announced that Gamma-Dynacare Medical Laboratories has agreed to put into operation SQI’s SQiDworks™ platform, and to purchase SQI’s multiplexed IgXPLEX™ rheumatoid arthritis consumables. The companies are also in discussions to beta test the SQI multiplexed IgXPLEX™ Celiac panel.

Securities

Aquinox Pharmaceuticals Inc. pulled in US$25,000,000 in the close of a Series B financing  led by Ventures West Capital. Pfizer Venture Investments, Johnson & Johnson Development Corporation, Baker Brothers Investments, and BC Advantage Funds (VCC) Ltd. participated in the financing. The proceeds will allow Aquinox to advance its lead clinical candidate into Phase I and II clinical studies, and to continue efforts at discovering additional candidates for treating chronic respiratory and inflammatory diseases.

Aeterna Zentaris Inc. (TSX: AEZ, NASDAQ: AEZS) is selling 8,800,000 common shares at US$1.3725 per share, along with 4,000,000 (5-year, $1.3725) warrants, expecting to gross $12 million when the deal closes June 18. Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive placement agent.  Proceeds are being used in connection with Aeterna’s leading oncology compound, perifosine, being developed in collaboration with Aeterna’s North American partner, Keryx Biopharmaceuticals, Inc. (NASDAQ: KERX).

Resverlogix Corp. (TSX: RVXadded another $10 million (to last week’s 9.2) in an overnight offering of  3,100,000 units are $3.23 per unit. Each unit is comprised of one common share and 0.4 of a (4-year $4.00) warrant. The offering is being conducted in Ontario, Alberta, and British Columbia, by Bloom Burton & Co., and Haywood Securities Inc. Prior to the offering, Resverlogix had 48,828,376 common shares issued and outstanding. The transaction is expected to close around June 22.

Enerkem

Enerkem Inc. has been chosen by Climate Change and Emissions Management Corporation (a private non-profit funded by the Government of Alberta) to receive $1.8 million in funding for a market demonstration project  aimed at reducing greenhouse gas emitted by biorefineries. Following the demonstration, Enerkem will incorporate the technologies in its Edmonton commercial biofuels facility.

Thanks again to Keldeagh Lindsay for his help with this week’s Deal Review.

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One response to “Monday Biotech Deal Review: June 21, 2010

  1. Pingback: Monday Biotech Deal Review: June 28, 2010 « The Cross-Border Biotech Blog

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