Welcome to your Monday Biotech Deal Review for January 14, 2013! This week’s big news is that Cytochroma, a privately held company, will be acquired by OPKO Health. Also on the M&A side, Asia-Biochem completed their acquisition of China’s Tieling Wanshunda Starch Company Ltd for over CDN$44 million. There was not much activity in the investment space, however ProMetric has been able to close $10 million in financing from Shenzhen Hepalink Pharmaceutical Co., as we’ve covered previously. Find out more about these transactions, as well as the rest of this week’s major Canadian Biotech news, by clicking through!
Cytochroma has entered into a definitive agreement with OPKO Health, Inc. (NYSE:OPK) under which Cytochroma, a privately held pharmaceutical company with operations in Markham, ON and Bannockburn, IL, will be acquired by OPKO. Through this transaction, OPKO will acquire worldwide rights to Cytochroma’s two lead product candidates: ReplideaTM (coded CTAP101 Capsules), a vitamin D prohormone to treat secondary hyperparathyroidism (SHPT) in patients with stage 3 or 4 chronic kidney disease (CKD) and vitamin D insufficiency; and, AlpharenTM (Fermagate Tablets), a non-absorbed phosphate binder to treat hyperphosphatemia in dialysis patients. Both products are in phase 3 development in the United States.
Asia Bio-Chem Group Corp. (TSX: ABC) has completed the acquisition of all the issued and outstanding shares of Tieling Wanshunda Starch Company Ltd., a wholly foreign owned enterprise under the laws of the People’s Republic of China. Under the terms of the Acquisition (available on SEDAR), the purchase price of Chinese Yuan (CNY) 280 million (Canadian $44.8 million) will be satisfied as follows: CNY 250 million ($40 million) in the form of account receivables of Asia Bio-Chem, and CNY 30 million ($4.8 million) notes payable 12 months after the completion of all title changes and filing approval with the local government.
ProMetic Life Sciences Inc. (TSX:PLI) has finalized the $10 million strategic equity investment in ProMetic by Shenzhen Hepalink Pharmaceutical Co., Ltd pursuant to the terms and conditions previously disclosed here.
Adherex Technologies Inc. (TSX:AHX) has announced that the Toronto Stock Exchange has lifted its review of the eligibility of the common shares of the company for continued listing as the company has demonstrated that it meets the continued listing requirements of the TSX.
Xylitol Canada Inc.(TSXV:XYL) has closed a private placement of 8,888,888 units at a price of $0.225 per unit for aggregate gross proceeds of $2,000,000. Each unit is comprised of one common share and one-half of one common share purchase warrant, each whole warrant entitles the holder to acquire one additional common share at a price of $0.375 for a period of 24 months following the closing date of the offering. Proceeds from the Offering will be used (i) to purchase inventory for existing orders and to launch new product lines; (ii) for research and development; and (iii) for general working capital purposes.
Licensing and Other Agreements
Paladin Labs Inc. (TSX: PLB) has entered into an exclusive Canadian distribution agreement with Allergy Therapeutics plc (AIM:AGY) for Pollinex®-R, an allergy vaccine for the treatment of allergic rhinitis due to ragweed pollen. In addition, Paladin also received an option to acquire distribution rights to Pollinex®-R in Sub-Saharan Africa. Under the agreement Paladin will co-promote the product with Takeda Canada Inc. for the first eight months before taking over all selling and distribution activities. Financial terms of the agreement were not disclosed.
Thallion Pharmaceuticals Inc. (TSX:TLN) has received a binding, final award from the International Chamber of Commerce (ICC) International Court of Arbitration regarding the dispute with the licensor of TLN-232, Expergen GmbH Drug Development. Pursuant to the final award, the Arbitral Tribunal concluded, among other things, that all claims for damages by Expergen against Thallion have been rejected. Thallion will not bear any new costs in respect of the arbitration, other than the legal expenses incurred to date, a portion of which the Arbitral Tribunal ordered Expergen to reimburse to Thallion.
Mitomics, a developer of mitochondrial DNA-based tests for early disease detection, has entered into a sales and marketing agreement for the Prostate Core Mitomic Test™ (PCMT™) with Sterling Pathology National Laboratories. Under the agreement, Sterling Pathology National Laboratories will make PCMT available through their team of sales representatives to urologists throughout the United States, on a non-exclusive basis.
Miraculins Inc. (TSXV: MOM) announced that Alere Inc. (NYSE: ALR) has exercised its exclusive option and licensed the novel biomarker Endoglin from Miraculins, concluding a three-year Collaborative Research and Option Agreement program. Alere originally secured an exclusive option to license the worldwide rights and commercialize any Miraculins’ biomarkers being advanced under the Collaborative Research and Option Agreement executed on January 11, 2010. Upon commercialization of Endoglin products by Alere, Miraculins will receive ongoing royalties on sales subject to terms set out in the license agreement. Miraculins has maintained its rights to pursue complementary commercial strategies for the Endoglin biomarker, utilizing certain Alere controlled intellectual property and reagents.