The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Monday Biotech Deal Review: June 6, 2011

Welcome to your Monday Biotech Deal Review for June 6, 2011.  This week’s deal review is brought to you by Norton Rose OR LLP summer student Steven Zuccarelli who, before entering law school at Osgoode Hall Law School, obtained his B.Sc and M.Sc at McMaster University in Biochemistry and Health Sciences, respectively, where he was involved in researching peptide vaccine models.  Steven will be assisting over the summer months with the Monday Deal Review, and it’s great to have him aboard. 

Aside from some interesting commercial deals, as well as CardioComm’s related-party announcement of a $788k asset purchase, things were fairly slow last week.  Read on to learn more. 

Investment

MaRS Innovation and GlaxoSmithKline Inc. (GSK) announced the GSK-MaRS Innovation Fund, which will support and fast-track the commercialization of translational research in the areas of drug development, diagnostics and healthcare delivery technologies.  The translational research will come from 16 leading academic health sciences centres, hospitals and universities derived from the MaRS Innovation membership.

BIOREM Inc. (TSX-V: BRM) has reached an agreement with Wellington Financial to amend the maturity date of the outstanding $2,000,000 debenture from October 31, 2011 to May 31, 2013.  As consideration for the extension, BIOREM is providing Wellington Financial 250,000 shares in the company.

Miraculins Inc. (TSX-V:MOM) will receive $100,000 in grant funding from the Manitoba Technology Commercialization Program to support the commercialization of the PreVu Non-Invasive Cholesterol Test, an assessment technology that evaluates the additional risk a person may have for coronary artery disease by testing their skin cholesterol level.

IntelGenx Technologies Corp. (TSX VENTURE:IGX) (OTCBB:IGXT) has entered into a securities purchase agreement for the issuance and sale in a private placement transaction of 2,482,536 shares of common stock at a per share purchase price of US$0.67, and three-year warrants to purchase up to 1,241,268 shares of common stock at an exercise price of US$0.74 per share, for aggregate gross proceeds of approximately US$1.6 million. IntelGenx also intends to enter into a subscription exclusively with Canadian investors for the issuance and sale in a concurrent private placement transaction of up to an additional US$1.5 million in Common Stock and Warrants.  Overall, IntelGenx expects to receive aggregate gross proceeds from the US and Canadian Private Offerings of up to US$3 million. Proceeds will be used for general corporate purposes.

Licensing, Collaboration and other Commercial Transactions

Compass Biotechnologies (OTC: COBI) announced that the first product to be sourced from their manufacturing partner, PanGen of South Korea, will be a class of protein product known as Erythropoietins (EPO).  The Erythropoietins market is expected to grow to $110-140 billion by 2015.

Cangene Corporation (TSX: CNJ) announced that Biomedical Advanced Research and Development Authority (“BARDA”), an agency within the U.S Department of Health and Human Services, exercised options to extend until 2018 the delivery schedule as well as to provide for additional work under a botulism antitoxin supply contract previously worth US$362M and which has already yielded US$200.1M in revenues to Cangene.  Following the exercise of options, the total worth of the contract to Cangene is US$423M.   

Kane Biotech Inc. (TSX-V:KNE) has been awarded a contract by the United States Army Dental and Trauma Research Detachment to develop an antibiofilm-antimicrobial wound gel formulation comprising Kane Biotech’s DispersinB(R) antibiofilm enzyme and the US Army’s KSL-W antimicrobial peptide.  This collaborative effort continues the impact of the ongoing Cooperative Research and Development Agreement for Material Transfer signed with the U.S. Army’s Walter Reed Army Institute of Research.  Financial terms were not disclosed.

CardioComm Solutions, Inc. (TSX-V:EKG) has entered into an asset purchase transaction with MD Primer Inc., a related party of CardioComm.  Under the agreement, CardioComm will purchase all rights to the GEMS™ 4.0 ECG management software solution, the Heartcheck™ ECG Monitor and the Heartcheck™ PEN Handheld Heart Rhythm Monitor in exchange for 15,677,065 common shares of CardioComm. The shares are being issued at a deemed price of $0.05 per share, for a total purchase price of $783,853.25.  CardioComm will also issue shares to Anglo German Progressive I Limited (“AGP”) as part of the terms of settlement of its lawsuit with AGP.  In addition, CardioComm has granted 1,100,000 incentive stock options, with 1,000,000 options being issued to Etienne Grima, the Company’s CEO, and 100,000 options being issued to Simi Grosman, an independent member of the Company’s board of directors.

Other Corporate Announcements

YM BioSciences Inc. (NYSE Amex: YMI) (TSX: YM) provided updates to the development and manufacturing of nimotuzumab, its humanized monoclonal antibody targeting EGFR.  Due to slow rates of patient accrual and anticipated costs and timelines, two randomized, Phase II trials of nimotuzumab were closed.  Further, in anticipation of greater demand for the antibody, a cGMP manufacturing facility located in Havana, Cuba has been commissioned to produce nimotuzumab.

Functional Technologies Corp. (TSX-V:FEB) has granted Dr. Connie Chen, VP, Corporate Development and Communications, an option to purchase 125,000 common shares, exercisable for five years at a price of $0.77 per share.

Theratechnologies Inc. (TSX:TH) will adopt a new R&D business model to strengthen future growth.  The model makes use of partners in the public and private arena to help facilitate R&D projects forward.  By reducing the workforce by 24 employees, among other measures, this restructuring will result in a reduction in payroll expenses of approximately $300,000 for the remainder of fiscal 2011, and a reduction of approximately $2.5 million for fiscal 2012.

Acceleware Ltd. (TSX VENTURE:AXE) has made new appointments to management and has granted options to the newly appointed individuals.  Heather Stubbs has been appointed Chief Financial Officer of Acceleware, and Adam Rock has been appointed as Corporate Secretary.  Stock options totalling 150,000 common shares have been granted to Ms. Stubbs and Mr. Rock, which have an exercise price of $0.10 per common share and which expire June 2, 2016.  The options will vest as to one-third on the first anniversary of the date of grant, with the remainder vesting equally on the second and third anniversaries thereafter.

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One response to “Monday Biotech Deal Review: June 6, 2011

  1. Pingback: Monday Biotech Deal Review: June 27, 2011 « The Cross-Border Biotech Blog

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