Welcome to your weekly review of Canadian biotech deals for October 25, 2010. Last week’s notable transactions included the Qualifying Transaction of TSXV CPC company CCS Capital Inc. (now known as China Health Labs & Diagnostics Ltd.) and ProMetic’s strategic agreement with Allist Pharmaceuticals Inc., for the commercialization in China of two of ProMetic’s drug candidates. Read on to learn more about these transactions, as well as the usual assortment of Canadian biotech news.
China Health Labs & Diagnostics Ltd. (formerly CCS Capital Inc. (TSXV: CSW.P)) completed its CPC Qualifying Transaction with Whole Vision Limited (including Biochem Hengye Science & Technology Development Co., Ltd., and other related companies) and is listed as a Tier 1 Issuer on the TSXV. Shares are expected to trade under the symbol “CHO”. China Health also completed a brokered private placement of 6,107,834 shares at a price of $0.60 per share for gross proceeds of $3,663,700. Canaccord Genuity Corp. acted as exclusive financial advisor and agent in connection with both the Qualifying Transaction and the financing. China Health has 64,441,167 common shares issued and outstanding as well as options for 450,000 shares, IPO agents’ warrants for 99,185 shares and Financing agent’s warrants for 888,725 shares. Century Delight Investment Limited, a BVI company controlled by Mr. Zhende Liang, is now the principal shareholder of China Health, holding 72.9% of the issued and outstanding shares of China Health on a non-diluted basis, subject to a Tier 1 Surplus Security Escrow Agreement.
Sernova Corp. (TSXV: SVA) is offering a non-brokered private placement of up to 5 million units at a price of $0.15 per unit for proceeds up to $750,000. Each unit consists of one common share of the company and one-half share purchase warrant, exercisable at a price of $0.20 for two years from closing. Sernova also announced a first closing on October 15, 2010 for proceeds of $575,000. $2,800 was paid to finders, with 3,800,000 units issued as well as 37,333 finders’ warrants.
Biotonix (2010) Inc. (TSXV: BTX) announced a private placement without broker to qualified investors for a maximum of $1.4M, for a total of 2,333,33 units. Each unit consists of one common share and one-half of one common share purchase warrant at $1.00 per warrant, exercisable for two years following closing.
Healthcare investment management firm OrbiMed Advisors, LLC acquired, through a series of transactions, 793,167 common shares of Response Biomedical Corporation (TSX: RBM) as at October 20, 2010. OrbiMed entities hold in the aggregate 36.41% of the issued and outstanding common shares of Response Biomedical.
Fonds de solidarité FTQ has converted its remaining Series 2 preferred shares in Bioniche Life Sciences Inc. (TSX: BNC) to common shares, totalling 6,521,677 common shares issued to Fonds de solidarité FTQ.
Medicago Inc. (TSX: MDG) received approval from the TSX to reduce the exercise price of warrants issued November 27, 2009 from $1.00 to $0.43, representing the volume weighted average trading price of Medicago over the last five days, beginning November 4, 2010. The warrants expire at 5:00 p.m. ET on November 26, 2010.
Licensing and Collaborations
ProMetic Life Sciences Inc. (TSX: PLI) and Allist Pharmaceuticals, Inc. entered a strategic agreement to develop and commercialize two ProMetic drug candidates in China. Key terms include: (i) Allist will fund the development costs and will accelerate development programs; (ii) Allist has exclusive commercial rights for the Chinese market; (iii) ProMetic retains rights to data for other markets, representing savings of over USD$10M in future development costs; (iv) Agreement includes USD$59M in milestone payments to ProMetic as well as royalties on sales in China.
Immunovaccine Inc. (TSXV: IMV) entered a collaboration agreement with National Research Council Canada to evaluate the efficacy of a carbohydrate-based vaccine formulated in Immunovaccine’s proprietary vaccine delivery and enhancement platform, DepoVax™. The selected modified carbohydrate has potential to be developed into a both a meningococcal and therapeutic cancer vaccine.
Afexa Life Sciences Inc. (TSX: FXA) signed an exclusive in-license agreement with Lisoma International Ltd. and Lisoma Canada Ltd., whereby Afexa has been granted the exclusive Canadian rights to use, develop, market, sell and distribute Lisoma’s proprietary natural health product for the treatment of cold sores, which product was recently granted a Natural Product Number permitting it to be sold in Canada as an over-the-counter remedy.
Microbix Biosystems Inc. (TSE:MBX) reported best-ever quarterly sales fuelled by a 15% increase in virology product volume and 20% increase in demand for pharmaceutical-grade water products. Microbix is projecting a 15% increase in worldwide sales for 2011 based on current currency rates.
Medifocus Inc. (TSXV: MFS) announced the University of Oklahoma Health Sciences Center’s Institutions Review Board granted final approval to conduct the Pivotal Phase III Breast Cancer Treatment Study at the UofO Breast Institute. Medifocus also obtained two patents for the treatment and prevention of breast cancer and the treatment of deep seated tumors.
Cardiome Pharma Corp. (NASDAQ: CRME) (TSX: COM) announced its co-development partner, Astellas Pharma US., Inc. suspended patient enrolment in the ACT 5 study of KYNAPID™ following a single unexpected serious adverse event experienced by a patient who received KYNAPID.
Amorfix Life Sciences (TSE: AMF) engaged Posada & Associates, Inc. to assist with business strategy and partnering transactions. Amorfix also announced the appointment of Dr. Walter von Wartburg to the board of directors.
Northstar Healthcare Inc. (TSX: NHC) was informed by the TSX that a planned continued-listing review, required following the recent change of control pursuant to a private placement (covered here) – will be postponed for 30 days to enable the new board to constitute an audit committee, close the books on the third quarter, and file Q3 financial statements.
PMI Labs OralAdvance™ announced that the price for its early-stage oral cancer detection test will be lowered by 35%, resulting from the completion of the Next-Gen quantitative cytology analysis platform, ClearCyte™.
CardioComm Solutions Inc. (TSXV: EKG) confirmed no material information pertaining to the company has not been disclosed, following a trading halt by Investment Industry Regulatory Organization of Canada. Trading of CardioComm resumed October 18, 2010.
Global Health Ventures Inc. (OTC: GHLV) filed a new United States Provisional Patent on over 40 drugs for sublingual delivery.
Lorus Therapeutics Inc. (TSX: LOR) announced the allowance of a patent in the United States covering Lorus’ lead antimicrobial compound LOR-220 and related small molecules.