The Cross-Border Biotech Blog

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

Monday Deal Review: September 17, 2012

Welcome to your Monday Biotech Deal Review for September 17, 2012. This week’s big news includes Valeant’s plans to syndicate an additional $1,000,000,000 of incremental term B loans, and Cangene’s sale of 3 plasma centres to U.S-based Grifols.  Read on to learn more.

Investment

Valeant Pharmaceuticals International, Inc. (TSX: VRX)  has announced plans to syndicate an additional $1,000,000,000 of incremental term B loans under its existing senior secured credit facilities. The incremental term B loans will be used to provide a portion of the financing for Valeant’s anticipated acquisition of all of the outstanding common stock of Medicis Pharmaceutical Corporation (NYSE: MRX). The incremental term B loans will have a seven year term and are expected to have terms that are substantially similar to the Company’s existing Term Loan B facility. The incremental term B loans are expected to close in the first half of 2013, concurrent with the closing of the transaction. The company also intends, subject to market and other conditions, to raise approximately $500,000,000 of unsecured debt for general corporate purposes, including acquisitions.

Gemoscan Canada, Inc. (TSXV: GES) has announced its intention to issue shares for services to two consultants of the in exchange for the provision of certain strategic advisory services. Gemoscan has entered into an agreement with one consultant to provide Advisory Services. Pursuant to the terms of the agreement, the company will be issuing Cdn.$7,000 in Class A Share per month to the first consultant. The initial term of the first agreement is 180 days in duration and the company expects the fist issuance of shares under the agreement to occur on or about October 1, 2012. Gemoscan has also entered into an agreement with a second consultant to provide Advisory Services pursuant to the terms of the second agreement. The Company will be issuing Cdn.$4,000 in shares per month to the second consultant. The initial term of the second agreement is 90 days in duration and the Company expects the first issuance of shares under the second agreement to occur on or about October 1, 2012.

Critical Outcome Technologies Inc. (TSXV: COT) announced that an employee and a consultant were each granted 200,000 share options from the Company’s Stock Option Plan as part of the compensation under their respective employment and consulting agreements on September 10, 2012. These 400,000 options have a life of five years and are exercisable at a price of $0.14 per share with vesting occurring immediately. The exercise price represents the closing price of the Company’s common shares on Friday, September 7, 2012, the last reported trade on the TSX Venture Exchange prior to the approval date.

Commercial Agreements

Critical Outcome Technologies Inc. (TSXV: COT) and Delmar Chemicals Inc., a Canadian company owned by Holding F.I.S S.p.A announced that they have entered into a research and development collaboration agreement to advance selected small molecules. COTI and Delmar will work together to discover, select, screen and synthesize compounds for targets that have been identified as being of specific interest to major pharmaceutical companies. Under the agreement, COTI will utilize its proprietary Artificial Intelligence drug discovery platform, CHEMSAS®, to discover and optimize novel drug candidates designed to effectively address a number of highly desirable commercial and therapeutic opportunities. Delmar will take on the medicinal chemistry analysis of the chemical structures as well as the synthesis of the most promising candidates.

Indel Therapeutics Inc., a biopharmaceutical company dedicated to developing new drugs to address the global health crisis caused by antibiotic resistance, announced that it is the industry partner for a new genomics-based research project entitled, “Combating drug-resistant pathogens”. The project is focused on identifying new inhibitors for drug targets that will lead to the creation of novel classes of antimicrobials against Gram negative bacteria and biodefense agents.

Cangene Corporation (TSX: CNJ) has announced that its wholly owned subsidiary, Cangene Plasma Resources, Inc. has entered into an agreement for the sale of its three U.S. based plasma centres to Grifols, through wholly owned Grifols subsidiary, Biomat USA, Inc. (Biomat USA). The transaction is expected to close in October, 2012 and is subject to customary closing conditions.  The Company plans to reinvest the net sale proceeds in research and development programs and funding in-licensing opportunities. Cangene will retain its Winnipeg-based plasma centre which is focused on collecting specialty plasma and plans to source its additional plasma needs from the open market, including through a supply agreement with Grifols.

Corporate Announcements

Mitomics Inc., a developer of mitochondrial DNA-based tests for early disease detection, announced it has undertaken an alignment of its product-development department to best utilize existing laboratory capacity. Chief Laboratory Officer, Jennifer Creed, will now lead end-to-end product development for Mitomics. The alignment sees a reduction of Mitomics’ workforce by eight positions. The company is not planning additional staffing changes.

Nordion Inc. (TSX: NDN) has announced a strategic realignment of the business designed to focus on improving the execution of Nordion’s business strategy. The plan includes transitioning Nordion to a Business Unit model with two distinct Business Units: Targeted Therapies and Specialty Isotopes, each of which will be supported by centralized corporate functions. The Specialty Isotopes business will include two segments: Sterilization Technologies and Medical Isotopes.

 

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