Welcome to your Monday Biotech Deal Review for July 18, 2011. Of note over the past week was the completion of Trimel’s qualifying transaction under the TSX-V’s capital pool company regime, resulting in Trimel’s expected re-listing on the TSX. Also noteworthy was Valeant’s buying spree in the dermatology sector, with the purchase of dermatology assets from both Janssen Pharmaceuticals and Sanofi. Read on to learn more.
Trimel Completes Qualifying Transaction
Newly renamed Trimel Pharmaceuticals Corporation (formerly J5 Acquisition Corp.), and Trimel BioPharma Holdings Inc. completed its CPC Qualifying Transaction, resulting in the amalgamation of Holdings with Trimels’ wholly-owned Barbadian subsidiary, J5 (Barbados), Inc. Trimel acquired all of the issued and outstanding common shares of Holdings in exchange for Trimel common shares issued to Holdings shareholders on a basis of two Holdings shares for one Trimel share. The common shares of Trimel are expected to be delisted from the TSXV and relisted for trading on the TSX under the symbol “TRL”.
Valeant to Acquire Assets
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) has agreed through its subsidiaries to acquire the assets of Ortho Dermatologics division of Janssen Pharmaceuticals, Inc. for $345M, including the prescription brands RETIN-A MICRO®, ERTACZO® and RENOVA®. Total revenue for these products was approximately $150M in 2010.
Valeant also agreed to acquire Dermik, a dermatology unit of Sanofi (EURONEXT: SAN) (NYSE: SAN) in the U.S. and Canada, and worldwide rights to Sculptra® Aesthetic for approximately $425M. Included is Sanofi’s Laval, Canada site which includes the Dermik manufacturing facility. Total 2010 contract manufacturing revenues are approximately $240M. (See here for Sanofi’s press release).
Montreal-based private company Medicom® Inc., has acquired a 78% controlling interest in Kolmi-Hopen Group, based in France, which had sales of $23.5M in 2010.
PharmaGap Inc. (TSXV: GAP) completed an initial closing of a private offering of up to 5,555,556 units. An initial 884,500 units were subscribed in the initial closing at a price of $0.09 per unit. Commitments for an additional 950,000 units have also been received and will be included in a final closing. Each unit consists of one common share and one common share purchase warrant exercisable at $0.14 for two years. A total of $5,483 in cash fees and 60,920 broker warrants are to be paid in connection with the initial closing to Northern Securities Inc. SC Stormont Holdings Inc., which is owned by PharmaGap’s chairman, has agreed to enter into Securities Lending Agreements with investors who request free-trading shares in exchange for shares acquired pursuant to the placement that are subject to a four month trading restriction.
Collaboration, Licensing and other Commercial Transactions
Microbix Biosystems Inc. (TSX: MBX) received a milestone payment of $250,000 from its Animal Reproduction Industry partner after an audit of its engineering progress in its LumiSort sperm sexing technology.
MedMira Inc. (TSXV: MIR) (NASDAQ: MMIRF) completed and shipped an order for 400,000 rapid HIV tests for its Chinese strategic partner, Triplex International Biosciences Co., Ltd. (originally covered here). In addition, Triplex placed a follow-on order with MedMira for more rapid HIV tests.
Innovotech Inc. (TSXV: IOT) has granted exclusive worldwide rights to market Innovotech’s InnovoSCEPT veterinary biofilm tests to Spectrum Labs Inc. Financial terms were not disclosed.
Centre for Drug Research and Development and TEC Edmonton signed an affiliation agreement permitting UofA researchers to access CDRD’s world-class expertise and infrastructure. TEC Edmonton is a non-profit joint venture between UofA and the Edmonton Economic Development Corporation, and is Greater Edmonton’s business incubator and accelerator for tech companies.
Labopharm Workforce Reduction
Labopharm Inc. (TSX: DDS) further reduced its workforce, eliminating 23 positions, resulting in a total of 71 employees to support operations. The reduction will cost about $0.5M, but is expected to result in incremental cost savings of $2.7M annually.