Welcome to your Monday Biotech Deal Review. There was some activity with Angiotech last week, with extension agreements being executed extending certain deadlines dealing with Angiotech’s proposed recapitalization as well as a preliminary loss in court against Rex Medical L.P. Read on to learn more, as well as your usual assortment of biotech news.
Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI) (TSX: ANP) reached an agreement with holders of approximately 76% of its 7.75% Senior Subordinated Notes as well as holders of approximately 53% of principal amount of the Company’s existing Senior Floating Rate Notes to extend deadlines in the previously announced (covered here) support agreements dated October 29, 2010. Under the Extension Agreements, the dates by which Angiotech must commence the Exchange Offer is extended to December 15, 2010, and the date the Minimum Exchange Offer Threshold must be achieved is extended to January 21, 2011. All other deadlines have been similarly extended by approximately two weeks.
Angiotech also entered a three-year private label product supply agreement with Hologic, Inc. (NASDAQ: HOLX) for soft tissue biopsy instruments manufactured by Angiotech. No financial terms were disclosed.
Lastly, and further to our previous post on the matter, Angiotech announced that the United States District Court for the Southern District of New York granted the petition of Rex Medical L.P. for a preliminary injunction requiring Angiotech’s subsidiary to continue to perform under a License, Supply, Marketing and Distribution Agreement, pending the adjudication of an arbitration commenced by Rex on November 18, 2010.
IMRIS Inc. (TSX: IM) (NASDAQ: IMRS) underwriters have exercised a portion of an over-allotment in connection with its recently completed public offering (covered here), and have purchased 600,000 common shares at US$5.00 per share for gross proceeds of US$3,000,000. Total gross proceeds under the offering are now US$55,500,000.
Lorus Therapeutics Inc. (TSX: LOR) closed a private placement of 1,581,667 common shares at a price of $1.05 per share for gross proceeds of approximately $1,660,750. Approximately 89% of the total number of common shares issued was subscribed for by director Herbert Abramson. The transaction was approved by all directors of the Corporation other than Mr. Abramson. Under the private placement, Mr. Abramson acquired 1,410,000 common shares, representing approximately 10% of the outstanding common shares of Lorus. Mr. Abramson now owns 6,437,811 common shares representing approximately 41% of the issued and outstanding common shares, and together with stock options (if exercised), 52.8% of the issued and outstanding common shares (assuming no options and warrants are exercised by others).
MedMira Inc. (TSXV: MIR) (NASDAQ: MMIRF) received TSXV approval to complete a $1 million equity investment from Swiss company Andurja AG, which funding transitioned from the $1 million convertible debenture investment announced October 30, 2010 to an equity investment in the Company. Under the deal, Andurja acquired 20,000,000 equity units at a price of $0.05 per unit, each unit consisting of one common share and one common share purchase warrant. Each warrant is exercisable at $0.10 per share for four years. With this investment, Andurja owns 27.1% of the common shares of MedMira, undiluted.
Functional Technologies Corp. (TSXV: FEB) has arranged a non-brokered private placement consisting of 5.5 million units at $0.55 per unit for gross proceeds of $3,025,000. Each unit consists of one common share and one-half of one transferable common share purchase warrant, each whole warrant exercisable at $0.70 for 2 years following closing, subject to a 30-day acceleration if the common shares exceed $1.00 for 20 continuous trading days.
Theralase Technologies Inc. (TSXV: TLT) announced a non-brokered private placement to raise $500,000 in exchange for 800,000 units at a price of $0.625 per unit. Each unit will be comprised of one common share and one half of a non-transferable share purchase warrant, each whole warrant exercisable at a price of $0.75 for two years from closing.
Allon Therapeutics Inc. (TSX: NPC) received a major grant from the Michael J. Fox Foundation for Parkinson’s Research to determine the potential of the Company’s lead neuroprotective drug, davunetide, as a treatment for Parkinson’s Disease. Financial details of the grant were not disclosed.
Licensing, Collaborations and Commercial Transactions
Microbix Biosystems Inc. (TSX: MBX) formed wholly-owned subsidiary Crucible International Biotechnologies Corp. for its joint venture in China to advance the commercialization of its VIRUXMAX™ technology. The Company is transferring all of its influenza vaccine assets into Crucible, as well as an exclusive worldwide license to its VIRUSMAX technology and the Company’s 50% ownership interest in the Hunan, China JV. The Company also announced the private placement for Crucible for its start-up capital is over-subscribed, and will result in Microbix holdings approximately 80%, and gives a post-money valuation to Crucible of about $14 million. The JV partner will match the investment and extend a loan to the JV.
Bioniche Life Sciences Inc. (TSX: BNC) signed an agreement with Thorn BioScience LLC, a subsidiary of CreoSalus, Inc. providing exclusive rights to Bioniche to market and distribute CreSalus’ SucroMate™ Equine product in the U.S. (an ovulation timing product for use in horse-breeding), with a first right of negotiation to expand the territory.
IMRIS Inc. has sold an IMRISneuro system – a “fully integrated multi-operating room system featuring on-demand intraoperative MR imaging capabilities” – to Dartmouth-Hitchcock Medical Center in Lebanon, New Hampshire. Financial terms of the sale were not disclosed.
A5 Laboratories Inc. (OTC: AFLB) announced its European partner has begun preparation and production of VI-1718 interferon product, with an estimated 2,000 doses to be manufactured with certificates of analysis in the next 4 weeks. In 6-8 weeks the company expects to begin a multi-center production and in-vitro test of the product to establish proof of concept potency.
Immunovaccine Inc. (TSXV: IMV) signed a collaborative research agreement with OncoTherapy Science Inc., of Kawasaki City, Japan, to explore the efficacy of OncoTherapy’s novel peptide cancer antigen in Immunovaccine’s DepoVax™ vaccine delivery and enhancement platform. Terms of the deal were not disclosed.
Cynapsus Therapeutics Inc. (TSXV: CTH) signed a binding memorandum of understanding with former development partner IntelGenx Corp. (TSXV: IGX), whereby IntelGenx will forgive $231,000 of debt and will agree to pay a royalty on future sales of the INT0010, a product for symptomatic management of MS –induced neuropathic pain. In connection with the agreement, Cynapsus retains exclusive worldwide rights to its licensed technology as it relates to generic THC products to treat nausea / appetite stimulation. A definitive agreement is expected on or before December 31, 2010. InteGenx Corp’s press release announcing the acquisition of exclusive rights to and ownership of INT0010 is located here.
Thallion Pharmaceuticals Inc. (TSX: TLN) and LFB Biotechnologies initiated a Phase II trial in South American to evaluate Shigamabs® as a treatment for Shigatoxin-producing E. coli.
Theratechnologies (TSX: TH) will be holding a conference call to discuss the signing of a partnership agreement for EGRIFTA™.
Theratechnologies Inc. (TSX: TH) has been granted exemptive relief from Canadian securities regulators to provide its November 30, 2010 financial statements in accordance with IFRS, two financial years ahead of the mandatory conversion date.
Patheon (TSX: PTI) CEO and President Wesley P. Wheeler has left the company. Peter Bigelow, President of Patheon’s North American operations, has been appointed interim CEO.
Paladin Labs Inc. (TSX: PLB) is voluntarily recalling and withdrawing all lots of Darvon-N® (dextropropoxyphene, also known as propoxyphene) on the Canadian market following a US FDA request that all manufacturers of propoxyphene withdraw their products from the U.S. market based on all available data, including new data showing that dextropropoxyphene can significantly increase the risk of serious abnormal heart rhythms.