Monday Deal Review: March 23, 2009

A relativley light week for Canadian deal and company info this week, but we have all the news that’s fit to print (if not necessarily fit to distribute in the U.S.)

Securities:

• CRH Medical Corporation (TSX-V: CRM) has engaged Canaccord on a “commercially reasonable efforts” basis to complete a private placement of up to 2,564,103 units (one common share + one 3-year $1.00 per share warrant) at $0.78 per unit, for aggregate gross proceeds of up to approximately $2 million plus an overalottment of up to 384,616 units, for additional gross proceeds of up to approximately $300,000, exercisable 48 hours prior to closing. Net proceeds from the offering will be used to fund the training and adoption by physicians in the US of the Company’s proprietary CRH O’Regan Hemorrhoid Banding Technology and other corporate purposes.
• The shareholders of MDS Inc. (TSX: MDS; NYSE: MDZ) approved the renewal of the company’s Shareholder Rights Plan at the 2009 Annual and Special Meeting of Shareholders held March 12, 2009 in Toronto.  MDS shares are trading near an all-time low.

Partnering and Development Deals:

• PharmaGap Inc. (TSX-V: GAP) and MD Biosciences GmbH have entered into a co-development collaboration for novel compounds in inflammatory and neurological applications (e.g., arthritis and MS). MD Biosciences has been granted exclusive access to a series of novel peptide compounds designed by PharmaGap as inhibitors of protein kinase c theta, a cellular signaling molecule associated with many inflammatory and neurological disease conditions. MD Biosciences will assess the PharmaGap compounds and would act as the lead partner to commercialize the compounds for these specific therapeutic indications. Commercialization rights on generated intellectual property will be shared by the companies.  Financial terms are confidential.
• Quest PharmaTech Inc. (TSX-V: QPT) formed a strategic alliance with IntelligentNano Inc. and, as a result of the alliance, the two groups have created a water soluble nano-formulation of Quest’s SL052 technology, which has the potential to address a wider range of clinical needs than Quest’s current formulation of SL052.
• Norgen Biotek, a Canadian biotechnology company focusing primarily on tools for nucleic acids and protein purification, signed an OEM agreement with Exiqon A/S (NASDAQ OMX Copenhagen: “EXQ“) to supply RNA purification kits based on Norgen’s proprietary purification technology. Exiqon A/S is a Denmark-based company active in the life sciences, diagnostics and pharma services. Terms of the agreement were not disclosed.

Clinical Trials:

• Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) provided updates on two trials:  interim clinical results from its Phase I/II U.K. trial of REOLYSIN(R) combined with paclitaxel/carboplatin for patients with advanced cancers (REO 011) and updated results of combination REOLYSIN(R) and docetaxel Phase I for patients with advanced cancers (REO 010).
• YM BioSciences Inc. (NYSE Alternext US:YMI, TSX:YM, AIM:YMBA) enrolled the first patient into its multinational trial of nimotuzumab for the treatment of patients with non-small-cell lung cancer (NSCLC). The trial is a Phase II study to examine the effect of nimotuzumab when added to palliative radiotherapy to treat NSCLC. The trial has a target enrollment of 128 patients and is being conducted internationally with 12 centers contracted to participate in Canada. Patients diagnosed with Stage IIb or III NSCLC ineligible for curative treatment, or Stage IV NSCLC patients with progressive disease within the chest, are eligible to enroll into this study.