The Cross-Border Biotech Blog

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

Monday Deal Review: July 22, 2013

Welcome to your Monday Biotech Deal Review for July 22, 2013! A busy week saw acquisitions of Medicago by Mitsubishi Tanabe Pharma Corporation and Allon’s acquisition by Paladin Labs.

Hit the break to see the whole story on these major deals and for the rest of the past weeks’ stories!

M&Eh

Medicago Inc. (TSX: MDG) has entered into a definitive arrangement agreement with Mitsubishi Tanabe Pharma Corporation (MTPC) whereby MTPC will acquire all of the issued and outstanding common shares (“Shares”) of Medicago, other than the Shares currently held by Philip Morris Investments B.V. an affiliate of Philip Morris International Inc. and MTPC, for $1.16 in cash per Share (the “Purchase Price”).  Upon completion of the transaction, Medicago will be jointly owned by MTPC (60%) and PMI (40%).

Paladin Labs Inc. (TSX:PLB) and Allon Therapeutics (TSX: NPC) announced that in accordance with the Order for Reorganization in Allon’s proposal proceedings under the Bankruptcy and Insolvency Act (Canada) and under the Canada Business Corporations Act which have been previously announced, Paladin has become the sole shareholder of Allon.

Investment

Covalon Technologies Ltd. (TSXV: COV) has filed articles of amendment to consolidate the issued and outstanding common shares of the Company (“Shares”) on the basis of one post-consolidation Share for each 10 pre-consolidation Shares. The Shares will commence trading on the TSXV on a consolidated basis effective at the opening on Tuesday, July 16, 2013.  The Shares will continue trading under the same stock symbol, COV

viDA Therapeutics Inc. (viDA), a private biotechnology company, announced the closing of a $1.8 million equity financing round. viDA is pursuing the discovery and development of novel, first-in-class drugs that inhibit the granzyme family of serine proteases for the treatment of several chronic inflammatory and age-related diseases.  The financing was led by BDC Venture Capital and included support from a number of angel investors.

RepliCel Life Sciences Inc. (OTC: REPCF) has announced the closing of a private placement financing (the “Financing”), pursuant to which it has issued 1,050,000 shares at a price of CAD$0.50 per share for gross proceeds of CAD$525,000.

Cynapsus Therapeutics Inc. (TSXV: CTH) announced that its common shares have been approved for trading in the United States on the OTCQX marketplace (“OTCQX”). Trading is expected to commence immediately on OTCQX International under the symbol CYNAF. The Corporation will continue to trade on the TSX Venture Exchange under its existing symbol CTH.

Debt Financing

MedX Health Corp. (TSXV – MDX) announced that further to the notification given in the Press Release issued on July 4, 2013, it has issued 3,620,780 Units, comprising a total of 3,620,780 common shares at a deemed value of $0.10 per share and 1,810,390 share purchase warrants, to settle outstanding debt of $362,078.16. Each share purchase warrant entitles the holder to purchase one (1) fully paid non-assessable common share from the treasury of MedX during the period commencing on the date of issue and expiring on December 31, 2015 (the “Expiration Date”), at an exercise price of $0.20 if exercised before January 1, 2015, and at an exercise price of $0.30 if exercised after December 31, 2014 and prior to the Expiration Date.

Nuvo Research Inc. (TSX: NRI) and Paladin Labs Inc. (TSX:PLB)  announced that they have completed the amended loan arrangements. Under the terms of the amended arrangements, Nuvo has drawn down a second $4.0 million loan tranche bringing the total amount currently outstanding on the Loan to $5.9 million. The Loan bears interest at 15% per annum. Paladin has been issued warrants to acquire 50,000 Nuvo common shares at $1.82 per share being 130% of the 5-day trailing value weighted average trading price (“VWAP”) of Nuvo common shares on the Toronto Stock Exchange.  The warrants expire July 10, 2016.

Commercial and Other Agreeements

Nuvo Research Inc. (TSX: NRI) announced that Nuvo and Nuvo’s wholly owned subsidiary, ZARS Phama, Inc. and Galen have entered into a product acquisition and license agreement for Galen to acquire the exclusive rights to market and sell Nuvo’s Synera patch throughout the United States for its current indication. Under the terms of the agreement, Galen has made an upfront payment to Nuvo of US$4.5 million. Nuvo will receive royalties of 10% of net sales and is eligible to receive a US$5 million milestone payment upon gross annual sales reaching US$25 million and a further US$5 million upon gross annual sales reaching US$50 million.  Galen has acquired the U.S. rights to the current FDA approved indication for Synera.  Nuvo retains the right to develop and seek FDA approval for future additional indications including acute musculoskeletal pain.

RepliCel Life Sciences Inc. (OTC: REPCF) is pleased to report that it has completed the previously announced Collaboration and Technology Development Transfer Agreement (the “Agreement”) with Shiseido Company, Limited (TYO:4911). A joint steering committee will now be formed to oversee the transfer of the technology, knowhow and standard operating procedures. As defined by the Agreement, Shiseido will pay RepliCel an upfront fee of ¥400,000,000 (approx. CDN $4,200,000). In addition, Shiseido will pay RepliCel sales milestones amounts of up to ¥3,000,000,000 (approx. CDN $31,500,000) and royalties.

One response to “Monday Deal Review: July 22, 2013

  1. Pingback: Monday Deal Review: September 9, 2013 | The Cross-Border Biotech Blog

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