Welcome to your Monday Biotech Deal Review for March 7, 2011. It was a busy week with numerous private and public investments, offerings by biotech companies (see Stem Cell Therapeutics and Adherex Technologies), as well as some interesting licensing activity. Read on to learn more.
Angiotech Pharmaceuticals, Inc. has extended its offer from March 17, 2011 to March 30, 2011 in respect of a proposed exchange of new senior floating rate notes due 2013 for all outstanding Senior Floating Rate Notes due 2013. As well, and in connection with the previously announced sixth amendment to the floating rate note support agreement (covered here), Angiotech delivered a supplement to the offering memorandum and consent solicitation statement. The supplement would provide for certain amendments to the provisions of the offering memorandum, and would provide for the new floating rate notes to accrue interest at LIBOR + 3.75% as well as modifying certain covenants concerning asset sales.
Centric Health Corporation (TSX: CHH) completed a bought deal private placement of 17,940,000 common shares (which includes the 2,340,000 common shares issued pursuant to the exercise of an over-allotment) at a price of $1.20 per share for gross proceeds of $21,528,000. GMP Securities L.P. and Versant Partners Inc. acted as underwriters.
Adherex Technologies Inc. (TSX: AHX) commenced its previously disclosed rights offering (covered here) on the record date, being March 2, 2011. One right is to be distributed to each shareholder for each share of common stock held on the record date. The subscription price is $0.03 per unit. For details, the company directs readers to the prospectus available on EDGAR.
ProMetic Life Sciences Inc. (TSX: PLI) received a second $750,000 investment for its new subsidiary Newco bringing the total investment received to date to $1.5M, as part of a $2.5M investment from third parties. The Newco has entered a long-term lease on favourable conditions for an existing state-of-the-art facility in Laval, QC to develop and manufacture high-value plasma-derived therapeutic biosimilars for ProMetic’s current and future clients.
Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ: ONCY) received $7.7M from the exercise of 1,248,000 warrants by its biggest institutional shareholder, in connection with the financing closed November 8, 2010. The Company now has approximately 71.1 million shares outstanding and cash on hand of approximately $55M.
Amorfix Life Sciences Ltd. (TSX: AMF) closed a non-brokered private placement of 1,470,586 common shares at a price of $0.34 per share for gross proceeds of $500,000.
Pharmagesic (Holdings) Inc. has taken up an additional 54,590 shares of WEX Pharmaceuticals Inc. (TSX: WXI) for $0.14 cash per share, which represents over 90% of all the issued and outstanding shares when added to the 398,496,186 shares of WEX already acquired. Pharmagesic intends to enter into a separate transaction to acquire the remaining WEX shares. The offer expires March 10, 2011.
Immunovaccine Inc. (TSXV: IMV) issued 10,113 common shares to S.P. Angel Corporate Finance LLP for services rendered by Angel to the Company pursuant to a consulting agreement dated November 1, 2010. Pursuant to the agreement, monthly fees for services rendered may be paid in common shares. For the month of February 2011, 10,113 common shares were issued at a deemed price of $0.89 per common share.
Stem Cell Therapeutics Corp. (TSXV: SSS) filed a final short form base shelf prospectus in each of BC, AB, MB, ON and NS allowing for the offering of common shares, warrants or units for initial aggregate proceeds up to $15M for 25 months.
Ambrilia Biopharma Inc. (TSX: AMB) provided its bi-weekly default status report under National Policy 12-203 – Cease Trade Order for Continuous Disclosure Defaults. Since its most recent default announcement on November 10, 2010, there have been no further material changes.
Collaborations, Licensing and other Commercial Activity
Med BioGene Inc. (TSXV: MBI) entered a commercialization, license and research reimbursement agreement with Precision Therapeutics, Inc. providing exclusive global rights to Precision for the development and commercialization of Med BioGene’s LungExpress Dx™. Precision will pay within 120 days of closing licensing fees and research reimbursement of US$1.6M, and Med BioGene is eligible to receive up to US$1M in milestone payments as well as royalties. Precision is responsible for future development costs.
Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZ) received a net sales milestone of $2.5M from Cowen Healthcare Royalty Partners, L.P. pursuant to a sale to Cowen of Aeterna’s rights to royalties on future net sales of Cetrotide®, covered by the company’s license agreement with Merck Serono, which royalty payment was contingent on 2010 net sales reaching a specified level.
Burcon NutraSciences Corporation (TSX: BU) entered a twenty-year license agreement with Archer Daniels Midland Company for worldwide production, distribution and sale by Archer Daniels of Burcon’s CLARISOY® soy protein. Archer Daniels will make royalty payments on sales, marking Burcon’s first earnings stream.
IMRIS Inc. (NASDAQ: IMRS) (TSX: IM) announced a sale of IMRISNeuro to the University Hospital Tubingen, Germany. Financial terms were not disclosed.
Other Corporate Announcements
ProtoKinetix (OTC: PKTX) completed the funding requirements for trials to test the effectiveness of their AAGP™ molecule’s anti-inflammatory properties.