The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: May 7, 2012

Welcome to your Monday Biotech Deal Review for May 7, 2012.  Highlights from the previous week include the announcement by Valeant of its agreement to acquire assets from University Medical Pharmaceuticals Corp. for approximately $64M as well as the announcement of Merus’ $10M bought deal private placement and the completion of Allon Therapeutics’ $10M brokered private placement.  Read on to learn more. 

Investments

Merus Labs International Inc. (TSX: MSL, NASDAQ: MSLI) has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp. and Clarus Securities Inc. who have agreed to purchase, on a bought deal basis 5,556,000 ($1.80) common shares for proceeds of $10,000,800 with a (30-day, 15%) over-allotment option.  Proceeds will be used for general corporate purposes.

Allon Therapeutics Inc. (TSX: NPC) has completed the previously announced $10 million brokered private placement of 15,612,500 units and 24,387,500 subscription receipts convertible upon shareholders approval into units (covered here), both priced at $0.25. Each unit consists of one common share and a (5-year, $0.40) warrant. Bloom Burton & Co. acted as the placement agent and will receive cash commission and 1,176,906 ($0.25) agent’s warrants.

M&Eh

Valeant Pharmaceuticals International, Inc. (TSX: VRX, NYSE: VRX) has agreed to acquire certain assets from University Medical Pharmaceuticals Corp., for approximately $64 million plus potential milestones based upon attainment of future revenue targets. Total revenue in 2011 from the acquired assets was approximately $32 million. The transaction is expected to close by mid-year, subject to certain closing conditions.

Licensing and Other Commercial Developments

Lorus Therapeutics Inc. (TSX: LOR) has entered into a global license with Genentech, a member of the Roche Group (OTCQX: RHHBY), in respect of certain patents owned by Genentech for IL-17E, a recently identified anticancer cytokine. Detailed financial terms were not disclosed.

Abattis Biologix Corporation (CNSX: FLU) has entered into an exclusive distribution agreement with Hedley Enterprises Ltd. to purchase, resell and distribute Abattis’ line of natural products in Canada.

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