The Cross-Border Biotech Blog

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

Monday Deal Review: August 27, 2012

Welcome to your Monday Biotech Deal Review for August 27, 2012.  Highlights from the previous two weeks include Miraculins Inc’s grant of stock options and distribution agreement with London Drugs, Microbix Biosyetem’s licensing of a thrombolytic biopharmaceutical to Zydus Cadila, and BIOREM’s closing of its private placement.  The Monday Deal Review for August 13, 2012 also marked the last Review authored by Jacob Cawker.  We’d like to thank Jacob for his hard work and years of service! For more about me, please see my Bio, here.  Read on to learn more.

Investment

Medifocus, Inc. (TSXV: MFS) has announced that, subject to regulatory approval, it has extended to on or around September 21, 2012 the closing date for its previously announced non-brokered private placement. The offering was originally announced on July 6, 2012 and is for up to 26,666,666 units at a price of $0.15 per unit for anticipated gross proceeds of up to $4,000,000.

Miraculins Inc. (TSXV: MOM) has announced that it has granted an aggregate of 1,740,000 stock options at an exercise price equal to or greater than $0.10 per common share, to certain directors, officers and management company employees of the Company. The options are set to expire ten years from the date of grant and are subject to the approval of the TSX Venture Exchange and the terms of Miraculins’ stock option plan. In accordance with securities regulatory requirements, any shares issued pursuant to the exercise of such options will be subject to a resale restriction for a period of four months from the date of grant of the underlying option.

Helix BioPharma Corp. (TSX: HBP) has applied to the Toronto Stock Exchange to extend the expiry date of the 2009 warrants by six months, from September 7, 2012 at 5:00 p.m. to March 7, 2013 at 5:00 p.m. Helix does not propose to amend any other provision of the 2009 warrants, and none of the 2009 Warrants is held directly or indirectly by an insider of Helix. The 2009 warrants were issued as part of a private placement completed by Helix on September 8, 2009, pursuant to which Helix issued 6,625,000 units at a subscription price of $2.05 per unit. Each unit consisted of one common share and one common share purchase warrant, with each 2009 Warrant common entitling the holder to purchase, subject to adjustment, one common share at a price of $2.87 until the expiry date.

GE Capital, Healthcare Financial Services announced today that it was sole lender and administrative agent on a $7.5 million senior secured term loan facility for Trimel Pharmaceuticals Corporation (TSX: TRL). The financing will be used for working capital to support ongoing clinical development.

BIOREM Inc. (TSXV: BRM) announced the final closing of its private placement. In the initial closing, a total of 1030 Units were issued for gross proceeds of $1,030,000. Subsequently, an additional 86 Units were closed which brought the total units closed to 1,116 for total gross proceeds of $1,116,000.  Each unit consists of $1,000 principal amount of 8.00% convertible extendible secured subordinated debentures with a maturity date 2 years from the date of issuance and 4,545 common share purchase warrants. The debentures are convertible into fully paid and non-assessable common shares of the Company at the option of the holder at any time over their term at a price of $0.11 per share.  Each warrant entitles the holder to purchase one common share at a price of $0.11 per share for a period of two years from issuance. 

Licensing and Distribution Agreements

Microbix Biosystems Inc. (TSX: MBX) and Zydus Cadila (NSE:ZYDUSWELL) have announced the closing of a definitive agreement regarding KINLYTIC® (urokinase). Under this agreement, Microbix has licensed to Zydus Cadila all its rights and expertise relating to KINLYTIC® (urokinase).  Zydus Cadila has become responsible for all further investments, including regulatory, product development, manufacturing and marketing.  Zydus Cadila is transferring manufacturing to its own biologics facility, which permits Microbix to avoid major manufacturing scale-up and validation costs. Microbix will also receive significant royalties on all sales of KINLYTIC® (urokinase), plus a multi-million dollar milestone payment upon Zydus Cadila’s achievement of $100 million in annual sales. KINLYTIC® (urokinase) is a thrombolytic biopharmaceutical used in clearing pulmonary embolisms and intravenous catheter blockages.

Bioniche Life Sciences Inc. (TSX: BNC), has launched a new product in the U.S., ButequineTM  Paste (phenylbutazone paste), for the relief of inflammatory conditions associated with the musculoskeletal system in horses. This is a proprietary product of Bioniche that is manufactured by Med-Pharmex Inc., a U.S.-based contract manufacturer. Bioniche has also acquired exclusive Canadian distribution rights to six products from Med-Pharmex, including topical Dermal products for dogs and cats, an anti-diarrheal product for dogs, cats, horses and cattle, and nutritional supplements for calves. Med-Pharmex will manufacture all of these products for Bioniche.

Bioniche Life Sciences Inc. (TSX: BNC) announced that it has entered into a distribution agreement with Imagilin Technology LLC to distribute MitoHorseTM, an equine probiotic. 

Miraculins Inc. (TSXV: MOM) announced an agreement with London Drugs that will see the retail pharmacy launch of its PreVu® Non-Invasive Skin Cholesterol Point of Care (POC) Test take place in up to ten London Drugs locations in Vancouver and the Lower Mainland, planned for October 2012.  As part of the agreement, London Drugs will have an option to expand the PreVu POC Test into all 74 London Drugs stores as an ongoing service, following the completion of the pilot program. The subsequent introduction of PreVu throughout its full network of stores would be associated with a period of market exclusivity for London Drugs.

BioSyent Inc. (TSXV: RX) announced that its subsidiary BioSyent Pharma Inc. has signed an exclusive Licensing and Distribution Agreement with a European partner for two new products that will be marketed by its’ Hospital Products Division. The products will be launched after Health Canada approval.

Clinical Trials

Medicago Inc. (TSX: MDG) and The Infectious Disease Research Institute (IDRI) have announced that they have been cleared by the U.S. Food and Drug Administration (FDA) to initiate a Phase 1 clinical trial for an H5N1 Avian Influenza VLP vaccine candidate (“H5N1 vaccine”) intended to be eventually used in a vaccine that can be self-administered in case of a pandemic flu outbreak. The trial is focused on evaluating the safety and immunogenicity of the H5N1 vaccine, combined with IDRI’s Glucopyranosyl Lipid A (“GLA”) adjuvant, which will be administered intramuscularly or intradermally. The trial is believed to be the first human test of an intradermal adjuvant.

M & Eh

PharmaGap Inc. (TSXV: GAP) today announced that it has received a letter of resignation board member Dr. Michel Phipps. Dr. Phipps has advised the board that he is unable to continue to serve in the capacity as a director due to continuing health concerns. Dr. Phipps was a founding member of the Board of PharmaGap on its spin-out from the National Research Council in 2001.

Maclos Capital Inc (OTC US: LMSMF has announced that it has changed its name from LMS Medical Systems Inc. to Maclos Capital Inc. effective August 20, 2012.

Corporate Announcements

Response Biomedical Corp. (TSX: RBM) announced that its board of directors has decided to proceed with the implementation of a consolidation of the issued and outstanding common shares of the Company on the basis of every twenty (20) common shares being consolidated into one common share. The effective date of the consolidation is expected to be on or about September 24, 2012. The consolidation affects all of the Company’s common shares, stock options and warrants outstanding at the effective date. No fractional Common Shares will be issued pursuant to the consolidation and shareholders will not receive cash in lieu of fractional common shares resulting from the consolidation.

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