Welcome to your Monday Biotech Deal Review. I am very excited to be writing for The Cross-Border Biotech Blog after working with Jeremy behind the scenes over the past three years. [ed. welcome (back) aboard!] It was a busy week for Canadian biotech companies, so let’s get started.
Merus Labs International Inc. (CNSX: MR) announced board approval for a non-brokered private placement of up to 4,000,000 units (one common share, one common share purchase warrant) at a price of $0.25 per unit for aggregate proceeds (8% finder’s fee) up to $1,000,000. The warrants will be exercisable for 18 months at $0.40 per share. Canadian National Stock Exchange approved price protection for the private placement expiring November 6, 2010. Merus also announced its subsidiary Merus Labs Inc. executed a definitive agreement with Innocoll Pharmaceuticals Limited to exclusively license in 3 advanced wound care products for the Canadian market. Innocoll also agreed to grant Merus a right of first refusal for all current pipeline advanced wound care products for the Canadian market.
Laboratory services provider Warnex Inc. (TSX:WNX) announced that Persistence Capital Partners LP acquired through private agreement with SGF Soquia Inc. 10,738,750 common shares of Warnex, representing approximately 16% of the issued and outstanding shares of Warnex as well as $1.5 million principal amount of convertible debentures.
Miraculins Inc. (TSXV: MOM) received $850,000 from the exercise of 8,500,000 private placement warrants issued April 1, 2010, representing 83% of the total warrants issued under that offering. Expiry of the warrants accelerated to September 20, 2010. All remaining unexercised warrants under the offering have now expired.
In connection with a previously announced merger transaction between Valeant Pharmaceuticals International (NYSE: VRX) and Biovail Corporation (NYSE: BVF) (TSE: BVF), Valeant anticipates declaring a one-time special cash dividend of $16.77 per share to Valeant shareholders on September 27, 2010, subject to shareholder approvals. The record and dividend fund date is anticipated to be September 27, 2010.
Digital pathology and DNA microarray solution developer Huron Technologies announced Confocal Inc. has acquired a controlling interest in Huron. Some additional coverage here from TheRecord.com in Waterloo.
Takeda Canada, Inc. a division of Japanese Takeda Pharmaceutical Company Limited (TYO: 4502), announced Health Canada approval of Dexilant (dexlansoprazole) for the treatment of gastrointestinal reflux disease (GERD). Dexilant is the first and only proton pump inhibitor with a novel dual delayed release technology, delivering two separate doses of medication at different times throughout the day.
SQI Diagnostics Inc. (TSXV: SQD) announced the issuance by Health Canada of a medical device license for its automated IgX PLEX Celiac™ microarray test kit that runs on the company’s automated SQiDworks™ platform. The regulatory approval process with the FDA in the U.S. for the PLEX Celiac Assay and SQiDworks diagnostics platform remains on track.
Arch Biopartners Inc (TSXV: FOI) incorporated subsidiary Colorado Cancer Therapeutics Inc. with University of Colorado chemists Dr. Lajos Gera and Dr. Robert Hodges. The subsidiary has acquired an option to enter into an exclusive license to commercialize certain anti-cancer compounds invented at UofC in exchange for US$12,000 to UofC and patent costs incurred during the period of the option. The option must be exercised prior to January 1, 2012.
Tekmira Pharmaceutical Corporation (TSX: TKM) amended its license agreement with Hana Biosciences, Inc which licensed three legacy chemotherapy product candidates in 2006. Hana will now make a US$5.75M payment to Tekmira in consideration of reduced future payments. The US$5.75M will be transferred to former debt holders of Tekmira, eliminating future payments to such former debt holders.
On the Brink?
SemBioSys Genetics Inc. (TSX: SBS) is taking immediate steps to obtain additional time to execute on one or more strategic alternatives. According to the company, there are a number of interested parties in negotiations and due diligence reviews. The company believes it has sufficient assets to satisfy obligations as due, but cannot continue existing business without new financing. SemBioSys provided notice of termination to affected employees.