Welcome to your Monday Biotech Deal Review for June 20, 2011. Notable transactions from the previous week included the public offering of units by Resverlogix, as well as investments by HTX and the Business Development Bank of Canada in each of Milestone Pharmaceuticals and Profound Medical Inc. Read on to learn more.
The Otto Bock group has acquired Quebec-based Neurostream Technologies. The redemption by Otto Bock of the minority interest that Victhom Human Bionics had in Neurostream Technologies will allow it to consolidate all neurostimulation activities worldwide and to capitalize on the state-of-the-art expertise developed locally. Otto Bock has invested $25 million in Neurostream Technologies since 2009.
MedX Health Corp., (TSXV.MDX) have signed an agreement to acquire BTG plc (LSE:BGC), the worldwide Siascopy™ assets, which includes MoleMate and related technologies. MedX will acquire the worldwide assets, including all of its IP, through a cash transaction and agreed upon royalty arrangement, the terms of which are not disclosed. This acquisition by MedX will include all the patents, trademarks, manufacturing procedures, software, inventory, and equipment, as well as existing distribution, supply and other contracts entered into by the Seller. MedX will now acquire a portion of the existing revenues through agreements and distributors in the UK, Australia, New Zealand, Poland, and the US.
Milestone Pharmaceuticals Inc. has completed a $13 million round of equity financing led by Pappas Ventures, the Business Development Bank of Canada (BDC), and GO Capital. Other participating investors include Fonds de solidarité FTQ (FSTQ), iNovia Healthcare Ventures and Fonds Bio-Innovation. Funding will be used to continue development of the company’s lead candidate for episodic treatment of transient cardiovascular conditions and stable angina, MSP-2017. In addition, Eric Linsley, Managing Partner of Pappas Ventures, Scott Weiner, Senior Principal at Pappas Ventures and Dominic Jaikaran, Principal at BDC Health Venture Fund, will join Milestone’s Board of Directors, with Philippe Lamarre and Adeoye Olukotun retiring from Milestone’s Board.
Profound Medical Inc is receiving $750,000 in financing from HTX through their Technology Assessment Program. HTX’s funding was part of a $9.4M Series A financing led by a syndicate of venture investors which includes the Business Development Bank of Canada (BDC) and Genesys Capital Partners. The financing will enable Profound to appoint up to 15 new employees and support a multi-site, human safety/feasibility clinical trial and regulatory approval initiatives in North America and Europe for a minimally-invasive treatment for prostate cancer based on MRI-guided high frequency ultrasound therapy.
Innovotech Inc. (TSX-V: IOT) intends to complete a private placement of units at a price of $0.72 per unit. The Offering is subject to minimum gross proceeds of $500,000 and maximum gross proceeds of $1,500,000, while each unit is comprised of one common share and one-half Common Share purchase warrant. Each Warrant entitles the holder to purchase one additional Common Share at a price of $0.90 per Common Share for a period of three (3) years following the date of closing, subject to common share price conditions. The capital obtained would be used for general working capital purposes, to support marketing of its veterinary and human test kits and to support efforts to gain regulatory approval of its agricultural industry products. Innovotech has also received its first purchase order for InnovoSCEPT™ veterinary biofilm susceptibility tests for launch into the Japanese veterinary market.
Resverlogix Corp. (TSX:RVX) has closed its previously announced prospectus offering of 7 million units at a price of CDN $1.80 per Unit for gross proceeds of $12.6 million. Each unit was comprised of one common share of the Company and one-half of a common share purchase warrant, and each full warrant is exercisable at a price of CDN $2.25 for a period of five years. The offering was co-led by Bloom Burton & Co. and Canaccord Genuity Corp. with Wedbush PacGrow Life Sciences acting as financial advisor in certain jurisdictions outside Canada.
Licensing, Collaborations and other Commercial Transactions
Ceapro Inc. (TSX-V:CZO) has entered into a Material Transfer Agreement (MTA) with the National Research Council of Canada (NRC) to evaluate a new series of potentially high-value active ingredients from rosehips uniquely native to Prince Edward Island that contain compounds capable of providing therapeutic benefits. Ceapro will have the option to negotiate a license to commercialize some or all elements of the NRC’s intellectual property as part of the MTA. As part of this collaboration, Innovation PEI has committed to providing non-repayable grant funding of up to $100,000 through its Development and Commercialization Fund. Ceapro also anticipates that it will negotiate a further Collaborative and Research Agreement with the NRC to undertake some work under the collaboration while other work will be conducted by Ceapro employees.
Functional Technologies Corp. (TSX-V:FEB) has entered into a non-exclusive agreement to research and evaluate its proprietary acrylamide-preventing (“AP”) yeasts with an undisclosed Collaboration Partner who is considered a leading company in the development, manufacturing, marketing and distribution of snacks and other food products. The agreement enables the partners to collaborate on proof of concept, pre-pilot scale trials, as well as preliminary review and development of production protocols. This stage of development and testing are a condition precedent to full scale pilot trials and commercial negotiations, facilitating meaningful discussions to determine how technologies and/or services may be employed by the Collaboration Partner.
Hamilton Thorne Ltd. (TSX-V: HTL), is advancing its collaboration with ISee3D Inc (TSX-V: ICT) to market their single camera, single lens, single chip 3D microscope technology currently under development for use in certain cell research and regenerative medical research markets. The product is expected to be released in the fall of 2011.
Miraculins Inc. (TSX-V:MOM), is maintaining its exclusive option with Alere, Inc. (NYSE: ALR) (formerly Inverness Medical Innovations) for Miraculins’ preeclampsia technology and will provide Miraculins a non-refundable fee in accordance with the terms of the parties’ Collaborative Research and Option Agreement formed in January 2010. Alere, in partnership with Miraculins, is working towards the goal of commercializing Miraculins’ preeclampsia biomarkers for worldwide distribution.
IntelGenx Corp. (TSX-V:IGX) has executed a binding term-sheet with RedHill Biopharma Ltd. (TASE:RDHL), to co-develop and license an anti-psychotic oral thin film product. The term-sheet sets forth the main criteria to be incorporated into a definitive development and license agreement, where RedHill would obtain exclusive worldwide rights to market and sell IntelGenx’ anti-psychotic product. IntelGenx would receive upfront, milestone, and external development fees totalling up to US$2.3 million from RedHill. Upon commercialization of the product, IntelGenx would receive up to 50% of proceeds including sales milestones and income from the product world-wide.
Gemoscan Canada, Inc. (CNSX:GES) has entered an agreement with a consultant in where Gemoscan will issue shares to the consultant in exchange for financial and strategic advisory services. The agreement provides for the issuance of 41,061 common shares at a deemed price of $0.344 per common share, and for monthly payment of fees to the consultant by issuing Class A common shares to it in exchange for the services.
Other Corporate Announcements
MethylGene Inc. (TSX:MYG) will pursue the clinical development of MGCD265 in non-small cell lung (NSCLC), gastric and prostate. It is expected that patients with advanced forms of these malignancies will begin to be enrolled in the third quarter of 2011. The company has also completed four Phase 1 clinical trials in healthy adult volunteers evaluating MGCD290 as a single-agent and in combination with fluconazole. MethylGene is planning to initiate Phase 2 clinical trials with MGCD290 in combination with fluconazole in acute vulvovaginal candidiasis (VVC) and recurrent VVC. In addition, Charles Grubsztajn, MethylGene’s President and Chief Executive Officer, and Dr. Peter Thompson, Founder and Managing Director of Strategicon Partners, were elected to the Company’s Board of Directors. Mr. Jay Moorin, General Partner of ProQuest Investments and Mr. André Archimbaud, a biotech consultant, who have been board members since 2006 and 2009, respectively did not stand for re-election.
Covalon Technologies Ltd.’s (TSXV: COV) board of directors approved the awarding of an aggregate of 710,000 options to three independent directors, vesting quarterly over one year, at an exercise price of $0.20 to be exercised within five years. The Board of Directors unanimously voted to discontinue cash compensation for directors’ services and instead directors are compensated only through the issuance of stock options.
Valeant Pharmaceuticals International, Inc. (NYSE/TSX: VRX) and GlaxoSmithKline (NYSE: GSK) have obtained approval from the U.S. Food and Drug Administration (FDA) for Potiga(TM) (ezogabine) Tablets, a potassium channel opener, as adjunctive treatment of partial-onset seizures. Ezogabine is expected to be available in U.S. pharmacies by the end of the year.
Noveko International Inc. (TSX: EKO) has obtained N95 certification from the U.S. National Institute for Occupational Safety and Health for its Noveko(TM) RD5-V respirator. This certification follows that previously obtained for its Noveko(TM) RD2 antimicrobial respirator allowing its marketing in European Union countries. The U.S. commercialization of respirators incorporating the antimicrobial technology still remains subject to obtaining FDA certification
Theratechnologies Inc. (TSX:TH) is now approved for listing on the NASDAQ Global Market (NASDAQ) under the ticker symbol “THER“.
Immunovaccine Inc. (TSX-V:IMV) will be nominating Brad Thompson to its Board of Directors. Dr. Thompson is the co-founder and chief executive officer of Oncolytics Biotech Inc. (TSX:ONC)(NASDAQ:ONCY).
Bio-Solutions Corp (OTCBB:BISU) will be expanding their business into the Durable Medical Equipment (DME) sector.
Special thanks to Steven Zuccarelli for help with this week’s Monday Bioterch Deal Review!