Welcome to your Monday Biotech Deal Review for June 27, 2011. There were a number of financings announced and closed in the previous week, as well as some M&A activity involving Cynapsus acquiring the shares of Adagio Pharmaceuticals. Read on to learn more.
Cynapsus Therapeutics Inc. (TSX-V:CTH), had entered into a preliminary agreement dated April 26, 2011 with Adagio Pharmaceuticals Ltd. providing for the acquisition by Cynapsus of all of the issued and outstanding shares of Adagio in a share exchange. The acquisition would supersede and replace the License Option Agreement dated July 22, 2010 entered into by Cynapsus and Adagio with respect to the intellectual property owned by Adagio concerning the world-wide APL-130277 patent rights and know-how. Further, in an update to Cynapsus’s previous announcement that it had signed a term sheet with an institutional investment group to be the lead investor in a $10 million offering, the investor will delay its investment decision in the Company until after a Phase 1 milestone is complete, which is currently expected to occur in or before Q1 2012. As a result, the previously signed term sheet with the Investor is no longer in effect.
Lorus Therapeutics Inc. (TSX:LOR), has filed a preliminary short form prospectus with the securities regulatory authorities in the provinces of Ontario, British Columbia and Alberta in connection with a best efforts offering of units to raise gross proceeds of a minimum of $2.0 million. Each unit consists of one common share and one-half of one common share purchase warrant. Bloom Burton & Co. Inc. and Euro Pacific Canada Inc. are acting as agents for the offering. The net proceeds from the offering will be used to further advance LOR-253 to the end of Phase I and for working capital and general corporate purposes.
IntelGenx Technologies Corp. (TSX-V:IGX)(OTCBB:IGXT) has closed private placement offerings (covered here previously) totalling approximately 4.8 million shares of common stock at a per share purchase price of US$0.67, and three-year warrants to purchase up to approximately 2.4 million shares of Common Stock at an exercise price of US$0.74 per share, for aggregate gross proceeds of approximately US$3.2 million.
Functional Technologies Corp. (TSX-V:FEB) has received gross proceeds of $3.3 million from the exercise of 4.1 million common share purchase warrants which were exercisable at a price of $0.80 per Warrant until June 18, 2011. Functional Technologies now has 48,796,895 common shares issued and outstanding.
Sernova Corp. (TSX-V:SVA) has closed its brokered private placement announced May 10, 2011. 5,337,914 units of the were placed at a price of $0.19 per unit for gross proceeds of approximately $1,014,200. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one Share for a period of two years, at a price of $0.20 per share in the first year and at a price of $0.35 per share in the second year. Macquarie Private Wealth Inc. acted as agent receiving a commission of $29,693.20, The proceeds from the offering will be used primarily for development of the Cell Pouch™ for safety and efficacy evaluation in diabetic patients receiving donor islets. In addition, Dr. Annemarie Moseley will be resigning from the Board of Directors.
Other Corporate Matters
Labopharm Inc. (TSX: DDS) (NASDAQ: DDSS) will delist its common shares from The Nasdaq Global Market as of the close of business on June 30, 2011. The Company’s common shares will continue to be listed on the Toronto Stock Exchange. The decision was motivated by the desire to preserve capital within the company by reducing costs associated with SEC reporting requirements.
Immunovaccine Inc.’s (TSX-V:IMV), therapeutic cancer vaccine, DPX-Survivac, has been cleared by the Food and Drug Administration to proceed to a Phase I/II clinical study. Immunovaccine expects to start the Phase I study in Q4 of 2011.
Collaboration, Licensing and Other Commercial Agreements
Sanofi Pasteur Limited has opened a $101 million dollar vaccine research and development facility at Sanofi Pasteur’s Connaught Campus in north Toronto. This new facility establishes the Connaught Campus as the North American Centre of Excellence in analytical and bioprocessing R&D for Sanofi Pasteur globally. The province of Ontario contributed $13.9 million to the project through the Biopharmaceutical Investment Program, part of the Next Generation of Jobs Fund. This investment helped retain a large vaccine R&D footprint in Ontario and will help secure future manufacturing jobs, since it is easier to reach commercial manufacturing scale for new products when R&D facilities are in close proximity to the actual manufacturing site. The new R&D facility will retain over 300 highly-skilled vaccine research.
iCo Therapeutics Inc. (TSX-V: ICO) is pleased to announce that Immune Pharmaceuticals (IMMUNE) has licensed Bertilimumab for systemic uses, pursuant to an option agreement previously announced in December 2010. iCo may receive US $32 million in milestone consideration for the license, plus royalties. iCo retains worldwide exclusive rights to all ocular applications, including a number of sight-threatening diseases. Upfront consideration includes US $500,000 cash, 600,000 IMMUNE shares and 200,000 IMMUNE warrants. Currently IMMUNE shares are worth US $2 per share.
Sunshine Biopharma, Inc. (OTCBB:SBFM) has executed an agreement with The Jewish General Hospital to conduct the necessary research and development to advance Sunshine’s lead compound, Adva-27a, through the various stages of preclinical studies and Phase I clinical trials. Adva-27a is a small molecule that is targeted towards various types of aggressive cancer.
CanAm Bioresearch Inc. and EpiTherapeutics ApS (Denmark) have signed a medicinal chemistry research services agreement for the collaborative development of novel innovative anti-cancer drugs.
Special thanks to Steven Zuccarelli for help with this week’s Monday Biotech Deal Review!