Welcome to your Monday Biotech Deal Review for May 9, 2011. Biotech activity was a bit slow last week. Of note however is the minority shareholder oppression litigation launched against WEX Pharmaceuticals in the wake of the recent takeover by Pharmagesic (Holdings) Inc. Read on to learn more.
Minority Shareholders Launch Lawsuit
The minority shareholders of WEX Pharmaceuticals Inc. (TSX: WXI) following the acquisition of the majority of WEX shares by Pharmagesic (Holdings) Inc. have commenced litigation against WEX, claiming an unspecified amount of damages as a result of alleged oppressive conduct by the company against shareholders other than Pharmagesic. WEX believes the claim is without merit.
Med BioGene Inc. (TSXV: MBI) announced a non-brokered private placement of units for gross proceeds up to $300,000. The units will sell for $0.05 per unit, and each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at $0.10 for two years following closing, subject to acceleration if the closing price of the company’s common shares is greater than $0.25 for more than 19 consecutive trading days. Med BioGene may pay a selling commission of 8% as well as compensation options.
Microbix Biosystems Inc. (TSX: MBX) agreed to extend the expiry of 200,000 share purchase warrants and 28,000 broker’s warrants issued in connection with a first tranche of a private placement closed March 31, 2011 (covered here). The extension would result in the expiry date being April 19, 2013 and is subject to TSX approval. Microbix also announced the achievement of early proof-of-concept for LumiSort™ livestock semen sexing technology.
Licensing, Collaboration and other Commercial Transactions
Response Biomedical Corporation (TSX: RBM) entered into an exclusive distribution agreement with Fisher Scientific Company to distribute the full line of RAMP® cardiac products in Canada. Terms of the agreement were not disclosed.
ALDA Pharmaceuticals Corp. (TSXV: APH) entered into a joint venture agreement with Seavan Health & Beauty Partnership whereby Seavan will manufacture ALDA’s products and ALDA will market and sell Seavan’s products and services. ALDA is in progress of acquiring substantially all of the assets and undertakings of Seavan.
GVI Clinical Development Solutions Inc. and Chinese IRD Medicine Company signed an MOU to create a JV contract research organization in China called IRD-CDS which will conduct Phase II and III clinical trials in China.
Critical Outcome Technologies Inc. (TSXV: COT) is seeking a pharmaceutical partner to continue development of novel scaffolds for inhibitin HIV-1 integrase. Following promising results, the agreement with COC’s existing development partner has concluded and the partner has advised that they are suspending all HIV-related work that is not already in an advanced stage.
The Centre for Drug Research and Development signed affiliation agreements with the University of Calgary and University Technologies International, which will permit UofC and UTI investigators to access CDRD’s infrastructure and expertise in developing new therapeutics.
Other Corporate Announcements
Cangene Corporation (TSX: CNJ) contract manufacturing subsidiary Cangene bioPharma, Inc. completed a USD$11M renovation of its sterile filling and support facility, which adds a second production freeze-dryer and increases overall throughput capacity as well as facility upgrades.
Lorus Therapeutics Inc. (TSX: LOR) announced the United States Patent and Trademark Office allowed a new patent for the Company’s lead clinical-stage cancer drug LOR-2040 for the treatment of Acute Myeloid Leukemia.
Abattis Biologix Corporation (CNSX: FLU) has entered into asset purchase agreements with respect to BioCell Labs’ portfolio of formulas, inventory and proprietary internet domains relevant to the products and formulas being acquired from BioCell. The purchase price is $50,000 payable by the issuance of 1,000,000 common shares at a deemed price of $0.05 per share. Abattis also entered into an asset purchase agreement with Dr. Samuel Brant LLC, whereby Abattis acquires 100% ownership of three proprietary natural product formulas that target flu like symptoms, migraine headaches and blood flow to muscles, for $50,000 payable by the issuance of 1,000,000 common shares at the same price per share above. Abattis also entered a letter of intent with OTC Nutrition LLC whereby OTC will provide consulting services in the areas of developing proprietary supplements and delivery methods that eliminate the need to take pills or capsules. Abattis has obtained a right of first purchase option pertaining to exclusive rights to certain products under development, IP and proprietary processes in exchange for the issuance of 5,000,000 common share purchase warrants exercisable at $0.07 for 5 years. Abattis has also issued 1,000,000 common shares at a deemed price of $0.07 to its CEO as a $70,000 bonus, and has issued 600,000 common shares in exchange for a $30,000 debt to RBH Holdings at a deemed price per share of $0.05.