Monday Biotech Deal Review: October 11, 2010

Happy (Canadian) Thanksgiving!  This Monday Biotech Deal Review reports that it was a bad week for turkeys and a bit of a slow week on the biotech front, but read on to learn about some interesting collaborations, allegations and corporate immigrations.

Investment

Postural health company Biotonix (2010) Inc. (TSXV: BTX) signed a letter of engagement with Industrial Alliance Securities Inc. for a brokered private placement of a maximum of 1,666,667 units ($0.60 per unit) for gross proceeds up to $1M.  Each unit consists of one common share and one-half of a (2-year $1.00) warrant.  Units will be offered in Quebec, Ontario, British Columbia and Alberta.  Alliance Securities gets a 9% commission from gross proceeds.

Sirius Genomics Inc. signed its second Contribution Agreement with NRC-IRAP to develop new biomarkers.

Allegiance Equity Corporation (TSXV: ANQ) announced that its previously proposed (Sept. 3^rd) private placement of up to 1,500,000 shares at $0.25 has been withdrawn and will instead proceed as a private placement of up to 400,000 common shares at $0.15 per share.

Collaboration

Varian Medical Systems Inc. (NYSE: VAR) and IMRIS Inc. (TSX: IM) have agreed to co-develop a new MR-guided radiation therapy system to treat certain cancers.  The system will combine IMRIS’s proprietary MR imaging technology with Varian’s TrueBeam™ system, enabling use of MRI during radiotherapy treatments.  Following development, the companies will co-brand the system and market it leveraging Varian’s global presence and leadership position in radiotherapy.

Immunovaccine Inc. (TSXV: IMV) and IRX Therapeutics entered into a preclinical research collaboration to evaluate the combination of IRX’s IRX-2 and DepoVax™-based cancer vaccines in demonstrating a superior anti-tumor immune response.

Angiotech-Quill Charges

Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI) (TSE: ANP) received notice on October 4, 2010 that QSR Holdings, Inc. (as representative for former shareholders of Quill Medical, Inc.), has named Angiotech, its subsidiaries Quill Medical, Inc. and Angiotech Pharmaceuticals (US), Inc., as respondents to an arbitration alleging the respondents failed to satisfy obligations under the2006 merger agreement, and seeks damages or extension by one year of certain earn-out periods set out in the Merger Agreement.  A similar proceeding was launched October 1, 2010 in the United States District Court for the Middle District of North Carolina.  Angiotech intends to defend the litigation and arbitration.

LAB Research ISO for Strategic Alternatives

LAB Research Inc. (TSX: LRI) is reviewing strategic alternatives, and has retained Samson Bélair/Deloitte & Touche in connection therewith.  Its main Canadian lender has also agreed to increase LAB’s operating credit facility to $4M from $2M and postpone capital instalments on long-term debt until December 17, 2010.  If LAB cannot complete a strategic transaction before December 17, 2010, it will have to make further arrangements with its Canadian lender.

New on the (Canadian) Scene

Otsuka Canada Pharmaceutical Inc., the subsidiary of Otsuka America Pharmaceutical, Inc., which is part of the Otsuka Pharmaceutical Group, opened its first Canadian office in Montreal and will initially co-promote ABILIFY® (aripiprazole) (for the treatment of psychotic disorders) with Bristol-Myers Squibb Canada, as well as IV BUSULFEX® (busulfan) Injection (indicated for use in combination with other agents as a conditioning regimen prior to hematopoietic progenitor cell transplantation).  Otsuka Canada will also seek regulatory approval to bring other innovative products to the Canadian market.

Infrastructure

GE Healthcare completed a vendor-neutral Digital Imaging Repository connecting hospitals and medical centers throughout Southwestern Ontario, and enabling them to share filmless diagnostic image exams between facilities.  According to GE Healthcare, the vision of the project is to provide infrastructure for the Canada Health Infoway and eHealth Ontario initiatives toward creating a pan-Canadian Electronic Health Record.

New Appointments

Miraculins Inc. (TSXV: MOM) appointed Mr. Paul Moreau to the position of Vice-President, Sales and Marketing, and Mr. Michael Coutts to the position of Director, Business Development.