Welcome to your Monday Biotech Deal Review for February 7, 2011. It was a fairly busy week for Canadian biotech – Angiotech has followed suit in the U.S. on the heels of last week’s CCAA filing, a number of acquisitions were announced, and there was some activity in biotech licensing. Read on to learn more.
Cynapsus Therapeutics Inc. (TSXV: CTH) closed a non-brokered private placement of units on February 2, 2011. A total of 5,800,000 units were issued at a price of $0.05 per unit raising gross proceeds of $290,000. Each unit consisted of one common share and one share purchase warrant, exercisable at $0.10 for two years following closing.
CardioComm Solutions, Inc. (TSXV: EKG) closed a non-brokered private placement of 3,000,000 units at $0.05 per unit for gross proceeds of $150,000. Each unit consisted of one common share and one common share purchase warrant exercisable for two years at $0.10 per warrant.
Valeant Pharmaceuticals International, Inc. (TSX: VRX) (NYSE: VRX) priced its $650 million aggregate principal amount of 6.75% senior unsecured notes due 2021. The notes will be offered in the U.S. only to qualified institutional buyers. Proceeds will be used for the acquisition of PharmaSwiss S.A. as well as the acquisition of all U.S. and Canadian rights to non-opthalmic topical formulations of Zovirax(R) from GSK. The closing of the offering is expected to be on or about February 8, 2011.
Allon Therapeutics Inc. (TSX: NPC) found that intranasal davunetide significantly improved motor function and brain pathology in a mouse model of Parkinson’s disease. As a result, the Michael J. Fox Foundation for Parkinson’s Research provided an additional $625,000 of funding toward davunetide research.
Novadaq(R) Technologies Inc. (TSX: NDQ) purchased the Transmyocardial Revascularization business from PLC Systems Inc. (OTC:PLCSF) for $1M U.S. in cash, and the assumption of PLC’s obligations under service contracts valued at approximately $614,000.
ALDA Pharmaceuticals Corp. (TSXV: APH) (OTC: APCSF) signed a non-binding term sheet to purchase the assets of Seavan Health & Beauty Partnership, which acquisition will provide ALDA with the ability to manufacture its own T36(R) products as well as Seavan’s own related product lines. ALDA will pay $1M in cash and (subject to adjustment at closing) issue 3,000,000 common shares. Closing is subject to certain conditions and may take place any time up to August 8, 2011.
LAB Research Inc. (TSX: LRI) entered a non-binding letter of intent regarding the acquisition of the company by a large US-based private equity group. LAB’s main lender has agreed to extend financial support until February 23, 2011 to enable the transaction to be completed.
Collaboration, Licensing and Commercial Transactions
Theratechnologies (TSX: TH) and Spanish Ferrer Internacional S.A. entered a distribution and licensing agreement whereby Ferrer obtains commercialization rights to tesamorelin in Europe, Russia, South Korea, Taiwan and certain central Asian countries for treatment of excess abdominal fat in HIV-infected patients with lipodystrophy. Financial terms were not disclosed.
In order to support a transaction between Isotechnika Pharma Inc. (TSX: ISA) and ILJIN Life Science Co., Inc., Paladin Labs Inc. (TSX: PLB) agreed to amend its partnership with Isotechnika to license additional territories to Isotechnika for the development of voclosporin in consideration of $1M from Isotechnika. Paladin also sold 12.5 million shares of Isotechnika to ILJIN for $3.25M. Paladin also entered an agreement with Bristol Myers Squibb to acquire the Tempra(R) line of products in Canada. Financial terms were not disclosed.
ProMetic Life Sciences Inc. (TSX: PLI) restructured secured loans provided by certain stakeholders such that repayment of $4M scheduled to occur in the first half of 2011 has been postponed to July 1, 2012. In return, the stakeholders will collectively receive 4,508,399 shares at market price as well as 2,857,139 warrants.
Other Regulatory and Corporate Announcements
Innovotech Inc. (TSXV: IOT) announced that LevPharm Ltd. of Israel received regulatory approval for the marketing and distribution of Innovotech’s bioFILM PA(TM) test, which is the first approval of bioFILM PA(TM) outside of Canada.
Following the announcement of a ruling in favour of IntelGenx Corp. (TSXV: IGX) on claim construction for two patents in the United States District Court of Delaware (covered here), the Court has dismissed the lawsuit initiated by Biovail Laboratories International SLR in August 2009.
Immunovaccine Inc. (TSXV: IMV) issued 12,000 common shares at a deemed price of $0.75 to S.P. Angel Corporate Finance LLP for services rendered pursuant to a consulting agreement.
Miraculins Inc. (TSXV: MOM) engaged Bloom Burton & Co. to provide strategic and financial advisory services to the company.
Angiotech Pharmaceuticals, Inc. (TSX: ANP) (NASDAQ: ANPI) received a letter from the TSX stating its shares will be delisted at close of market on March 3, 2011. Angiotech does not intend to appeal the decision. As well, and in connection with the CCAA proceedings initiated by Angiotech (covered here), the company has filed a voluntary petition under Chapter 15 of title 11 of the United States Code to obtain recognition and enforcement in the U.S. of relief granted in the CCAA proceedings.
The shares of CCAA-protected Ambrilia Biopharma Inc. (TSX: AMB) will be delisted from the TSX at the close of market on March 4, 2011. Ambrilia also provided its bi-weekly Default Status Report under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults. Since its most recent announcement on November 10, 2010, there have been no material changes.
Theralase Technologies Inc. (TSXV: TLT) has been granted approval to place the CE mark on its TLC-1000 series of products, clearing the way for sale of its laser products throughout all 30 members states of the European Union.