The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: May 30, 2011

Welcome to your Monday Biotech Deal Review for Monday May 30, 2011.  This week features summaries of the previous two weeks’ events in the biotech space, following the May 24 holiday weekend.  There hasn’t been too much activity, however Valeant is on the move, acquiring AB Sanitas for EUR 314M in cash.  Read on to learn more.  


Med BioGene Inc. (TSXV: MBI) closed a non-brokered private placement of units for gross proceeds of $210,000.  Each unit was priced at $0.05 and consisted of one common share and one-half of a common share purchase warrant, with each whole warrant exercisable at $0.10 for two years following closing, subject to acceleration if the closing price of the common shares is greater than $0.25 for 20 or more consecutive trading days.

Paladin Labs Inc. (TSX: PLB) received regulatory approval from the TSX to carry out a normal course issuer bid to purchase up to approximately 10% of its public float of common shares as at May 13, 2011 for twelve months following the effective date of the bid.  The Corporation is limited to a maximum daily repurchase of up to 3,768 common shares.

Genome British Columbia is providing non-dilutive funding to Sirius Genomics Inc. to take final steps toward development of a biomarker aimed at improving the treatment of sepsis.


Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) agreed to acquire AB Sanitas (NASDAQ OMX: SAN1L) for approximately EUR 314M in cash and the major shareholders of Sanitas have agreed to sell their 87.2% of the outstanding shares of Sanitas.  Following closing, Valeant intends to conduct a mandatory tender offer to acquire the remaining minority shares.

Merus Labs purchased the oral antibiotic Vancocin(R) from Iroko Pharmaceuticals in a deal that includes the transfer of the product and intellectual property rights, and the current inventory of Vancocin(R) to Merus.  Financial terms were not disclosed.

Paladin Repaid

Paladin Labs Inc. (TSX: PLB) received repayment of its $77.2M secured debt facility following the acquisition of ProStrakan Group plc by Kyowa Hakko Kirin Co., Ltd., together with an additional amount related to the early repayment of the debt.  Paladin also retains the rights to certain ProStrakan products for Canada and certain emerging markets.

Licensing, Collaboration and other Commercial Transactions

Mitomics entered into a non-exclusive licensing agreement with QDx Pathology Services to develop, market and process the QPredict(TM) Prostate Mitomic Test.  Financial terms were not disclosed.

Medicago Inc. (TSX: MDG) entered into a research collaboration agreement with the U.S. Army Medical Research Institute of Infectious Diseases for the development of a plant-based virus-like particle vaccine candidate for the prevention of Ebola virus.  Financial terms were not disclosed.

Other Corporate Announcements

GeneNews Limited (TSX: GEN) obtained disinterested shareholder approval for the early warrant exercise incentive program.  If all warrants under the program are exercised during the 22-day period, the company will receive gross proceeds of up to $4.1M, and issue approximately 17.2M common shares as well as 17.2M incentive warrants.  Disinterested shareholder approval was also obtained for the debenture conversion opportunity, which may result in the issuance of up to 24,170,620 common shares.

One response to “Monday Biotech Deal Review: May 30, 2011

  1. Pingback: Monday Biotech Deal Review: August 22, 2011 « The Cross-Border Biotech Blog

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