Welcome to your Monday Biotech Deal Review for October 15, 2012. Thanks to Thanksgiving for the Canadians and Columbus day for the Americans out there, this week’s post covers the last two weeks of activity. Biggest of the weeks’ stories, however, is Aeterna Zentaris Inc.’s $15 million public offering, closing in mid October. Read onwards to see just how busy this fall the market is shaping up to be.
Aeterna Zentaris Inc. (TSX: AEZ) (NASDAQ: AEZS) has announced the pricing of its public offering of 6.6 million units, with each unit consisting of one common share and 0.45 of a warrant to purchase one common share, at a purchase price of US$2.50 per unit. Each warrant will be exercisable for a period of five years following the issuance thereof at an exercise price of US$3.45 per share. Net proceeds from the offering are expected to be approximately US$15.2 million, after deducting underwriting commissions and other expenses. The offering is expected to close on or about October 17, 2012. The Company intends to use the net proceeds to continue to fund its ongoing drug development activities, particularly for the continued development of perifosine in multiple myeloma and the advancement of its AEZS-108 and AEZS-130 programs, as well as for general corporate purposes and working capital.
In addition, Aeterna Zentaris Inc. (TSX: AEZ) (NASDAQ: AEZS) has announced that the issued and outstanding common shares of the company have been consolidated on a six (6) to one (1) basis effective as of October 2, 2012. The purpose of the consolidation is to enable the company to attempt to regain compliance with NASDAQ’s minimum bid price requirement.
Functional Technologies Corp. (TSXV:FEB) reports that the second tranche of the non-brokered private placement announced in its news release of July 16, 2012 has closed, raising gross proceeds of approximately $1.9 million through the issuance of 9.6 million units at a price of $0.20 per unit. Each unit is comprised of one common share and one share purchase warrant. Each warrant is exercisable at a price of $0.30 for a period of two years, subject to an accelerated exercise provision. In connection with the second tranche closing, the company paid cash fees totaling approximately $0.1 million and issued approximately 0.7 million share purchase warrants to finders. The finders’ warrants have the same terms as the share purchase warrants issued to the investors as part of their units, but the finders’ warrants are non-transferable.
Cynapsus Therapeutics Inc. (TSXV: CTH) has announced that it has signed a term sheet with a Health Care / Life Sciences focused Institutional Investment Group to be the lead investor in a short form prospectus offering of C$7 million of its common shares and warrants. The closing is scheduled to be completed on or about November 15, 2012. Moody Capital Solutions, Inc. will act as the lead placement agent.
Kane Biotech Inc. (TSXV: KNE), a biotechnology company engaged in the development of products that prevent and remove microbial biofilms has announced that it has amended the terms of its 19,926,328 warrants which are currently outstanding, by extending the exercise period thereof by six-months from October 15, 2012 to April 15, 2013. The TSX Venture Exchange has granted its approval for the extension to the term of the warrants. The warrants were issued in the private placement completed by the Company on April 15, 2011. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.17 per share.
CardioComm Solutions, Inc. (TSXV :EKG) has announced that MD Primer Inc., CardioComm Solutions’ largest shareholder, has exercised a total of 6,000,0000 common share purchase warrants at an exercise price of $0.10 per share for gross proceeds to CardioComm Solutions of $600,000. MD Primer is under the control and direction of Dr. Anatoly Langer, CardioComm Solutions’ Chairman, and acquired the warrants in December 2010 under an equity financing conducted by CardioComm Solutions. The proceeds from the warrant exercise will be used by the Company for general working capital.
PharmaGap Inc. (TSXV: GAP) has announced that it is suspending all operations pending completion of the previously announced licensing transaction with Clinical Value Corporation as approved by independent PharmaGap shareholders at its Annual General Meeting on August 3, 2012.
Nordion Inc. (TSX: NDN) has confirmed that it will cease repurchasing shares under the Normal Course Issuer Bid (NCIB) which will be cancelled effective as of September 19, after close of markets.
MedGenesis Therapeutix Inc, a privately held biotechnology company focused on the development of definitive treatments for neurologic diseases, has announced that the Deutsche Parkinson Vereinigung e.V. has awarded a substantial grant to MedGenesis to support the Phase II development of glial cell line derived neurotrophic factor (GDNF).
M & Eh
Insception Biosciences Inc. and Lifebank Corp. (TSXV:LBK) are pleased to announce that Insception has acquired an additional 982,420 common shares in the capital of Lifebank by way of compulsory acquisition following Insception’s previously announced offer to acquire all of the issued and outstanding common shares of Lifebank. Insception now owns 11,313,361 common shares of Lifebank, representing 100% of its issued and outstanding common shares.
Response Biomedical Corp. (TSX: RBM) has announced that it has regained the worldwide rights to Flu A+B and RSV testing products as a result of the termination of its collaboration with 3M Company and 3M Innovative Properties Company (“3M”) including agreements for the Joint Development, Supply, and Distribution of RAMP® – based products. In addition, Response will acquire 3M’s entire remaining inventory of RAMP® readers and peripheral devices, assignment of its distributor network and all marketing materials used by 3M in connection with the marketing and sale of Response products.
Baxter International Inc. and MaRS Innovation, a Centre of Excellence for Commercialization and Research, have entered into a strategic partnership to commercialize early-stage technologies that present innovative methods in therapeutics and drug discovery technologies. The partnership’s shared vision for delivering novel, transformative therapeutic technologies will benefit Canadians and others around the world. Baxter and MaRS Innovation will identify investment opportunities emerging from well-validated scientific research discoveries within MaRS Innovation’s 16 member institutions, including the University of Toronto and its nine affiliated teaching hospitals. Baxter will provide up to U.S. $1 million in funding over a three-year period to support promising individual projects based on their positive due diligence, which will be leveraged with financial support from MaRS Innovation. This combined support will accelerate the development and validation of healthcare technologies within the largest academic cluster in Canada.
Paladin Labs Inc. (TSX: PLB) has announced that it has entered into a licensing agreement with QRxPharma Limited (ASX:QRX), an Australian-based specialty pharmaceutical company, whereby Paladin received the exclusive rights to market and sell MOXDUO® in Canada. MOXDUO is a novel, patented, immediate release, fixed dose formulation of morphine and oxycodone for the treatment of acute pain. According to IMS Canada, the value of the total immediate release opioid market in Canada totaled almost $170 million in 2011. Under the terms of this agreement, Paladin will pay US$500,000 upfront and provide a series of potential sales performance, regulatory and reimbursement milestone payments that can total up to US$25 million. In addition, Paladin will pay a series of tiered double-digit royalties on sales of MOXDUO® in Canada. Further financial details related to the agreement were not disclosed.