The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: February 1, 2010

Canadian biotech companies were busy making and closing deals this week, with $44 million raised, four new licensing and collaboration deals, and particularly big weeks for Ospens and the MDS/Dahaner transaction.

Opsens’ Big Week 

Opsens Inc. (TSXV: OPS) announced the engagement of M Partners Inc. for a brokered private placement of between 4,117,647 and 5,294,117 units, for gross proceeds between $3.5M and $4.5M. Each unit is priced at $0.85, and will be comprised of one common share and a half of a ($1.15 24-month) warrant. Net proceeds will be used for potential acquisitions, marketing expenses, and working capital. Opsens will pay a cash commission of 7% of gross proceeds and 7% non-transferable ($0.85 24-month) warrants to M Partners at closing.

Opsens also entered into a strategic partnership with Abiomed, Inc. (NASDAQ: ABMD). Through the partnership, Opsens’ pressure sensor technology will be integrated into Abiomed’s Impella® catheter to provide blood pressure measurements.

Opsens also announced a commercial order signaling progress in commercializing the oil and gas applications of its technology.

MDS Analytical Technologies’ Two Steps Forward

MDS Inc.’s (TSX:MDS) (NYSE:MDZ) sale of its Analytical Technologies business to Danaher Corporation (NYSE: DHR) moved closer to closing:


WEX Pharmaceuticals Inc. (TSX: WXI) announced that its previously announced rights offering (covered here) has been fully subscribed.  WEX will issue 265,483,177 restricted voting shares at $0.13 per share, for gross proceeds of approximately $34,512,813, 97.6% of which comes from Pharmagesic (Holdings) Inc., an indirect wholly-owned subsidiary of CK Life Sciences Int’l (HKG: 0775) of Hong Kong. Pharmagesic will own 88.7% of the total issued and outstanding restricted voting shares of WEX. CK Life Sciences has advised WEX its additional equity stake in WEX is a strategic investment. WEX will use the proceeds for additional research of tetrodotoxin

Resverlogix Corp. (TSX:RVX) closed a planned second tranche of the PIPE that we covered here, selling $8 million of units, bringing total proceeds to approximately $13 million. The $8 million tranche will result in the issuance of 3,189,250 common shares and a reservation of a further 797,313 common shares under the warrants.  5 million units had been available for the second tranche. 

Neovasc Inc. (TSXV: NVC) closed the first tranche of its non-brokered private placement (covered here), selling the whole over-allotment –approximately 7.4 million units — for aggregate proceeds of up to $2M.

Licensing and Commercial Deals

Pacgen Biopharmaceuticals Corporation (TSXV: PGA) announced it has entered research collaboration and development agreements with New Summit Biopharma Co, a Shanghai-based collaborative research organization focused on providing research and funding support for new drug commercialization in china, to develop and commercialize PAC-113 for the treatment of oral candidiasis in China. 

The Centre for Addiction and Mental Health (CAMH) out-licensed some of its IP to Massachusetts firm Athena Diagnostics Inc., which is part of public company Thermo Fisher Scientific Inc. (NYSE: TMO).  Athena will develop and market a genetic test for mutations on the FHL1 gene.  These mutations cause X-linked myopathy, a recently identified degenerative muscle disorder that strikes some adults in their early 30s.

The Ontario Hospital Association and PharmaTrust entered into a partnership intended to enhance patient access to prescribed medications, and make Ontario’s prescription dispensing more efficient. The parties will collaborate in installing PharmaTrust’s telepharmacy kiosks  in hospitals across the province.  The kiosks are automated, allowing 24/7 access to prescription and over-the-counter medications, but they are set up for live video pharmacist counselling. 


Thanks again to Jacob Cawker for help with this week’s Deal Review!

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One response to “Monday Biotech Deal Review: February 1, 2010

  1. Pingback: Monday Biotech Deal Review: February 15, 2010 « The Cross-Border Biotech Blog

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