Monday Biotech Deal Review: December 13, 2010

Welcome to your Monday Biotech Deal Review.  It was a bit of a slow week this week, with a few small private placement announcements, and some activity in the licensing sector.  Read on to learn more.  

Investment

Functional Technologies Corp. (TSXV: FEB) increased its previously announced non-brokered private placement (covered here) from 5,500,000 to 7,275,000 units which will result in gross proceeds of approximately $4,000,000 from $3,025,000.

Sernova Corp. (TSXV: SVA) closed a non-brokered private placement of 1,400,000 units at a price of $0.16 per unit raising gross proceeds of $224,000.  Each unit consisted of one common share and one-half of one common share purchase warrant, each whole warrant entitling the holder to purchase one common share at a price of $0.20, for two years following closing.

ALDA Pharmaceuticals Corp. (TSXV: APH) announced a non-brokered private placement of up to 2,000,000 units at a price of $0.10 per unit for proceeds of $200,000.  Each unit will consist of one common share and one non-transferable share purchase warrant entitling the holder to acquire one additional common share at $0.20 for two years from date of issuance.  The warrants are subject to accelerated expiry if, for ten consecutive trading days, the closing price exceeds $0.40, at which time the exercise period is reduced to ten days following such event.  The placement will be a related party transaction as insiders of ALDA will subscribe for over 25% of the offering and is exempt from independent valuation and minority shareholder approval.

Microbix Biosystems Inc. (TSX: MBX) closed a non-brokered private placement of units resulting in gross proceeds of $60,250.  Each unit was priced at $0.35 and consisted of one common share and one common share purchase warrant exercisable at $0.55 for 18 months following close.  115,000 finder’s warrants were also issued, entitling the holder to purchase a unit at a price of $0.37 per unit for 18 months following closing.

Immunovaccine Inc. (TSXV: IMV) issued 11,689 common shares to S.P. Angel Corporate Finance LLP at a deemed price of $0.77 per share for services rendered under a consulting agreement dated November 1, 2010.  Immunovaccine engaged S.P. Angel until March 31, 2011 to act as corporate finance and European capital markets consultant and advisor, in exchange for a monthly fee of $9,000 payable in common shares.

M&Eh

Urodynamix Technologies Ltd. (TSXV: URO) sold the majority of its assets to Chinese company HEGLN (Dalian) Pharmaceuticals Inc. for a purchase price of $2.1M.  Urodynamix also entered a license termination agreement with UBC and an early termination agreement with the National Research Council of Canada.  The asset purchase agreement was entered as of July 2, 2010, and Urodynamix received 10% of the purchase price in September and a further 40% on closing, with a further 30% to be paid on physical transfer of assets and tooling, and the final 20% on transfer of manufacturing know-how.

Licensing, Collaborations and Commercial Deals

Theratechnologies (TSX: TH) signed a distribution and licensing agreement with sanofi-aventis for commercialization rights to EGRIFTA™ in Latin America, Africa and the Middle East for treatment of excess abdominal fat in HIV-infected patients with lipodystrophy.  Theratechnologies will supply EGRIFTA™ to Sanofi, who will buy at an undisclosed selling price.  Theratechnologies keeps all future development rights, and is responsible for conducting R&D for additional programs.  Sanofi conducts all regulatory activities in the licensed territories.  Sanofi also has the option to commercialize EGRIFTA™ in the licensed territories for other uses.

iCo Therapeutics Inc. (TSXV: ICO) granted Immune Pharmaceuticals in Israel and the U.S. an option to exclusively license the development and commercialization rights to systemic uses (including Inflammatory Bowel Disease and Severe Asthma) of iCo-008, iCo’s human monoclonal antibody targeting eotaxin-1.  Under the deal, iCo retains worldwide exclusive rights to all ocular applications, IMPH will pay iCO a non-refundable option fee creditable upon conversion against an upfront license fee of USD$1M, and iCo may receive up to US$32M in milestone payments, plus royalties.

Arch Biopartners Inc. (CSNX:ACH) (OTC:FOIFF) obtained an exclusive license for a patent pending in the area of peptides and solid surfaces owned by the University of Colorado for USD$36,000.  Arch will also issue 150,000 common shares to the university if the company identifies a product covered by the patent that is ready to be advanced into commercial or clinical development.  Royalty payments will depend on future sales.

Bioniche Life Sciences Inc. (TSX: BNC) entered into an exclusive supply agreement with Angus Australia through its Australian distributor, Bayer Animal Health (a division of Bayer Australia Limited).  Bayer will exclusively supply Bioniche cattle reproductive products to the breed society for three years.  Financial terms were not disclosed.

Other Announcements

CCAA-protected Ambrilia Biopharma Inc. (TSX: AMB) provided its bi-weekly Default Status Report under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults.  Since its most recent default announcement on November 10, 2010, there have been no material changes.