The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: November 21, 2011

Welcome to your Monday Biotech Deal Review for November 21, 2011.  The week appears to have been dead quiet on the biotech front, with only a handful of items, including the announcement by Response Biomedical of an $8M equity financing by way of a rights offering.  Read on to learn more. 

Securities

Response Biomedical Corporation (TSX:RBM) has filed a preliminary prospectus for a proposed $8 million shareholder rights offering. Proceeds will be used to fund continued product development, sales and marketing initiatives, working capital, operating losses and other general corporate purposes. The rights will be to acquire a unit comprised of one common share and one warrant, and will likely be priced at a 50% discount from the lesser of $0.1493 and the 10-day volume-weighted average trading price for Response’s common shares. The five-year warrants will be priced equal to the price of exercising the rights. Response has also executed a non-binding letter of intent with OrbiMed Advisors LLC for a $5 million commitment for units not otherwise purchased.

Licensing and Other Commercial Developments

Premier Diagnostic Health Services Inc. (CNSX:PDH) has signed a Letter of Intent with Chang’an Industry Group, owner of Jiangling Hospital in Chongqing, China, to establish a joint venture to expand the hospital and conduct infrastructure improvement and future management.

Merus Labs International Inc. has entered into a license and distribution agreement with Innocoll in Canada for its transparent bioresorbable CollaGUARD surgical adhesion barrier for the prevention of postoperative adhesions following abdominal and pelvic surgery.

Special thanks to Keldeagh Lindsay for help with this week’s Monday Biotech Deal Review!

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