The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: February 13, 2012

Welcome to your Monday Biotech Deal Review for February 13, 2012.  There was some interesting biotech activity over the previous two weeks, including the closing by Oncolytics of its $18.5M equity financing and the withdrawal by Valeant of its offer to acquire ISTA Pharmaceuticals and its acquisition of a Brazilian food and sport supplement company.  Read on to learn more.  

Investments

Immunovaccine Inc. (TSXV: IMV) intends to complete a $2-3 million non-brokered private placement of between 6,666,667 – 10,000,000 ($0.30) common shares. Proceeds will be used to fund the Company’s research and development activities and other corporate purposes.

Oncolytics Biotech Inc. (TSX:ONC, NASDAQ:ONCY) has closed its previously announced $18.5 million financing pursuant to which a syndicate of underwriters purchased, on a bought deal basis, 4,405,000 ($4.20) common shares (covered here). The syndicate has exercised an over-allotment option to acquire an additional 660,750 shares for aggregate proceeds of $21,276,150, to be used to fund its ongoing Phase III combination REOLYSIN and paclitaxel/carboplatin trial for patients with platinum-failed head and neck cancers, its other clinical development and R&D activities and for general corporate and working capital purposes.

MedMira Inc. (TSXV: MIR) has entered into an agreement with Andurja Beteiligungen AG, for a $1 million equity investment to be used for operations and further debt reduction. Andurja is the controlling and majority shareholder of MedMira’s strategic partner Vitest AG. Under the terms of the agreement Andurja will acquire 20,000,000 ($0.05) equity units, each comprised of one common share and one (4-year, $0.10) warrant.

M&Eh

Futuremed Healthcare Products Corporation (TSX: FMD) and Cardinal Health Canada Inc., a wholly-owned subsidiary of Cardinal Health, Inc. (NYSE: CAH), announced today that the expiry time of the offer by Cardinal Health Canada to acquire all of the outstanding common shares of Futuremed for $8.15 has been further extended until February 16, 2012, to allow the Commissioner of Competition to complete her review of the proposed acquisition. All other terms and conditions as described in Cardinal Health Canada’s offer and take-over bid circular dated November 14, 2011 remain the same.

Valeant Pharmaceuticals International, Inc. (NYSE: VRX, TSX: VRX) has withdrawn its previously announced offer to acquire ISTA Pharmaceuticals Inc. (Nasdaq: ISTA) for $7.50 per share in cash (covered here). The offer was to remain open until January 31, 2012, but Valeant withdrew the offer due to lack of progress. Valeant has, however, acquired Brazilian sports nutrition and food supplements company Probiotica Laboratorios Ltda. for R$150 million. Valeant will also syndicate a $500 million senior secured Term Loan B credit facility as a new tranche under its existing senior secured credit facilities to fund repayment of its existing $275 million revolving facility and for general corporate purposes, including acquisitions. The Term Loan B loans will mature in 2019 and are expected to have terms that are customary for this type of financing. The facility is expected to close in February.

Debt Financing

Warnex Inc. (TSX: WNX) has reached an agreement with Persistence Capital Partners LP to extend the maturity date of a $1,230,969 convertible debenture maturing on January 31, 2012 and a $346,702 debenture maturing on February 29, 2012. Under the terms of the agreement, Warnex has paid $250,000 to PCP, in payment of all outstanding interest and fees and in partial repayment of the principal amount owing pursuant to the January 2012 Debenture, in exchange for an extension of the maturity date.

Pyng Medical Corp. (TSXV: PYT) has borrowed US$220,000 from its largest shareholder Excelera Corporation. The unsecured bridge loan carries interest at 11% per annum, does not include an equity component, and matures on April 12, 2012. Pyng also expects to develop a long-term financing arrangement of up to US$1,000,000 with Excelera, which the bridge loan will roll into, which is expected to provide additional funds to complete critical product development activity.

Licensing and Other Commercial Developments

Botaneco Corp. (TSXV:BOT) has signed a cosmetics distribution agreement with Brazilian company Dinaco SA.

Bio-Methatech has signed a contract to build a biogas system on Riverview Farm, located in Franklin, Vermont. The 180 kW system will produce electricity which will be sold to the public electricity network, and heat produced by the co-generator will be recovered to maintain the temperature of the digester as well as to heat the buildings.  To produce the biogas, animal waste, farm waste and other organic waste will be treated in an anaerobic digester.

Pacgen Biopharmaceuticals Corporation (TSXV: PGA) has amended its license agreement with Demegen, Inc., to expand its exclusive worldwide rights and license to anti-fungal PAC-113 for additional indications, including vaginal, dermatological and ophthalmic applications. There was no payment associated with the amendment license agreement. All other terms of the license agreement remained unchanged. Pacgen has right to sublicense all these additional indications as well as oral indications covered in its original license.

CardioComm Solutions, Inc. (TSXV: EKG) and TZ Medical, Inc. have entered into a device integration and distribution agreement for the Mobile Cardiac Telemetry electrocardiographicand arrhythmia management market. Under this agreement, CardioComm will integrate TZM’s new Aera CT™ MCT monitor into their proprietary GEMS™ software. CardioComm will become a global distributor of the Aera CT™ device with exclusivity in Canada. TZM will be able to sell the GEMS Area CT software when bundled with sales of their Aera CT™ device. CardioComm has also announced a $2,000,000 non-brokered private placement equity financing of 4,000,000 ($0.50) units, each comprised of one common share and one (2-year, $0.75) warrant.

Innovotech Inc. (TSXV: IOT) announced that Syngenta AG has decided not to pursue its Right of First Refusal for Innovotech’s seed treatment product, Agress®.

Guided Therapeutics, Inc. (OTC: GTHP) has signed a three-year agreement granting CAN-med Healthcare exclusive distribution rights for LuViva® Advanced Cervical Scan in Canada. Initial shipments are currently anticipated in the second quarter of 2012.

AbCelex Technologies Inc. has signed a strategic collaboration agreement with the Carton Group to jointly research and develop products effective against the foodborne bacterium Campylobacter jejuni. AbCelex’s proprietary antibody-based platform technology can be a substantial solution worldwide to help prevent or significantly reduce food-borne illnesses.

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

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