The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: April 18, 2011

Welcome to your Monday Biotech Deal Review for April 18, 2011.  Just by way of FYI, readers may be interested to know that The Canadian Institute will be hosting its 5th annual conference on Drug Pricing and Reimbursement in Canada in Toronto from June 14 – 15 at the Sutton Place Hotel.  The conference aims to bring key stakeholders together to share perspectives and strategies on maintaining competitiveness and compliance in these difficult markets.  Stay tuned on crossborderbiotech for coverage from the conference.  Back to the deal review, there was a fair bit of commercial activity last week, with some interesting licensing and commercial transactions announced or closed.  Read on to learn more.    


iCo Therapeutics Inc. (TSXV: ICO) entered an Equity Line Facility with Dutchess Opportunity Cayman Fund Limited whereby Dutchess has committed to provide up to $10M in equity capital over three years.  iCo may draw on the facility at its discretion, and newly issued common shares are subject to a minimum price set by iCo.  iCo must file and clear a short-form prospectus with the applicable securities authorities in Canada.

Kane Biotech Inc. (TSXV: KNE) closed its previously announced (covered here) private placement for aggregate gross proceeds of $2,391,159.40, resulting in the issuance of 19,926,328 units at a price of $0.12 per unit.  Each unit consisted of one common share and one common share purchase warrant, exercisable at $0.17 per share for 18 months from date of issue.  Finders’ fees of up to 8% of the total subscription proceeds received from subscribers were paid, as well as compensation warrants, which were exercisable at $0.14 per share for 18 months from date of issue.

Chemophor Inc. (TSXV: CFR) is proposing a non-brokered private placement of units for gross proceeds of approximately $1M.  Each unit is intended to be sold for $0.10, and will consist of one common share and one half of one common share purchase warrant, each whole warrant exercisable at $0.10 for two years from closing, and subject to accelerated expiry.  Agent’s commissions of 10% of gross proceeds and agent’s warrants will also be issued.

CardioComm Solutions, Inc. (TSXV: EKG) issued 500,000 common shares to Equity Communications Ontario, Ltd. at a price of $0.06 per share, under a strategic advisory agreement.

Shareholders of Thallion Pharmaceuticals Inc. (TSX: TLN) approved a special resolution to permit the Company to implement a normal course issuer bid.  


Applied Biology Company, which is a holding company of CIT Safety & Health Research Company, has reached an agreement with LAB Research Inc. (TSX: LRI) by which ABC will purchase substantially all of LAB’s assets.  The transaction is expected to close on or before April 21, 2011.  LAB is currently under court-appointed receivership.

Atrium Innovations Inc. (TSX: ATB) purchased its largest distributor, Montreal-based Robert & Fils.

Licensing, Collaborations and other Commercial Transactions

The Centre for Drug Research and Development and the BC Cancer Agency entered into a license agreement with US company Champions Oncology Inc. for Iriniphore C(TM), a liposomal formulation of Irinotecan.  Financial terms were not disclosed.

Theramed Corporation obtained exclusive distribution rights in Canada for the EBB(R) Complete Tamponade System and the JETTY(R) Vaginal Repair Balloon from Glenveigh International, LLC, both of which have been approved for sale by Health Canada. 

Quest PharmaTech Inc. (TSXV: QPT) entered into a clinical development arrangement with U.S. based Hemispherx Biopharma Inc. to evaluate the combination of Quest’s antibody immunotherapy technology with Hemispherx’s immune activator, in a clinical trial.  Costs of the trial will be shared equally between the companies.

MedMira Inc. (TSXV: MIR) (NASDAQ: MMIRF) will be serving the Canadian Forces Health Services Group with its Multiplo rapid test for HIV and Hepatitis B and C.

Compass Biotechnologies, Inc. (formerly Cyplasin Biomedical Ltd.) entered a Memorandum of Understanding with PanGen Biotech Inc., of South Korea, which lays a foundation for a definitive agreement whereby PanGen will manufacture major active pharmaceutical ingredients to be used to produce bio better versions of various drug products.  Compass obtains rights to North, Central and South American and EU countries and other areas.

SQI Diagnostics Inc. (TSXV: SQD) entered a clinical validation agreement with University North Carolina Kidney Center, Chapel Hill, to evaluate SQI’s multiplexed, automated approach for biomarker detection in vasculitis.  On completion of the study, SQI will compile and analyze the data and submit the results to the FDA to seek clearance to market the Vasculitis IgXPLEX assay.

Ondine Biomedical Inc. (TSX: OBP) (AIM: OBP) agreed to supply Vancouver General Hospital with its MRSAid(TM) Photodisinfection System for nasal pathogen decolonization as part of a thirteen month infection control Quality Improvement Project being conducted at the hospital. 

Shareholders of Med BioGene Inc. (TSXV: MBI) approved the partnership of the Company with Precision Therapeutics for the commercialization of the Company’s LungExpress Dx.

Critical Outcome Technologies Inc. (TSXV: COT) has initiated an experimental program to optimize the licensing value of its lead oncology drug candidate, COTI-2. 

Other Corporate and Regulatory Announcements

Arch Biopartners Inc. (CNSX: ACH) granted 250,000 stock options exercisable at $0.90 per share with a term of 5 years to a director, pursuant to the Company’s stock option plan.  The Company also successfully completed proof of principle studies in the area of targeting brain tumour initiating cells

BioSyent Inc. (TSXV: RX) filed revised financial statements for the third quarter ending September 30, 2010 to include a certificate that the interim financials have not been reviewed or audited by external auditors. 

Dr. Randal Chase, the President and CEO of Immunovaccine Inc. (TSXV: IMV), has resigned effective July 13, 2011.  Dr. Chase was also a director, and has also resigned his directorship, effective immediately.  Immunovaccine also announced positive interim data for its Phase I clinical trial of DPX-0907 in patients with breast, ovarian and prostate cancer.

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