April 6, 2015
Welcome to your Monday Biotech Deal Review for April 6th, 2015!
The past week saw Valeant complete the purchase of Salix Pharmaceuticals, which now becomes a wholly owned subsidiary of Valeant. In related news, Salix announced that they will be redeeming $750 million in senior notes by May 4, 2015.
For more on this story, as well as many more, keep reading this week’s Cross Border biotech Monday Deal Review!
Valeant Pharmaceuticals International, Inc (NYSE: VRX)(TSX: VRX) announced it has completed the previously announced acquisition of Salix Pharmaceuticals, Ltd. Salix Pharmaceuticals is a specialty pharmaceutical company that offers innovative gastroenterology treatments such as XIFAXAN® (rifaximin) 550 mg, RUCONEST® (C1 esterase inhibitor [recombinant]), APRISO® (mesalamine), UCERIS® (budesonide) extended release tablets and RELISTOR® (methylnaltrexone bromide).
Salix Pharmaceuticals, Ltd. (“Salix”), a wholly owned subsidiary of Valeant Pharmaceuticals International, Inc (NYSE: VRX)(TSX: VRX), announced that it will redeem all of the outstanding $750,000,000 aggregate principal amount of its 6.00% Senior Notes due 2021, CUSIP Nos. 795435AF3, U8639TAA3 (the “Notes”) pursuant to two redemptions. On May 1, 2015, Salix will redeem $262,500,000 aggregate principal amount of the Notes, and on May 4, 2015, Salix will redeem the remaining $487,500,000 aggregate principal amount of the Notes.
Thrasos Therapeutics, a biotherapeutics company focused on delivering new solutions for kidney disease, announced that it has completed a $21M Series D financing led by BDC Capital and SR One with participation by all current investors. Thrasos’ Board of Directors will be expanded with the addition of Ela Borenstein, Managing Partner at BDC Capital Healthcare Venture Fund.
Spectral Medical Inc. (“Spectral” or the “Company”) (TSX:EDT) (OTCQX:EDTXF), a Phase III company developing the first treatment for patients with septic shock guided by a companion diagnostic, completed its previously announced offering of 11,049,464 common shares (“Shares”) at a price of CDN$0.553 per Share for net proceeds of CDN$6,110,353 (the “Offering”).
Knight Therapeutics Inc. (TSX:GUD) (“Knight” or the “Company”), a leading Canadian specialty pharmaceutical company, announced that it has participated in the secured convertible debenture (“Debentures”) financing of Pediapharm Inc. (TSX VENTURE:PDP) (“Pediapharm”). Knight purchased $1.25 million of Debentures which bear interest at a rate of 12% per annum paid quarterly in cash as part of a $5.50 million offering by Pediapharm. The Debentures mature on March 30, 2019 and are fully secured against the assets of Pediapharm. At Knight’s option, the Debentures may be converted at any time into common shares of Pediapharm at a price of $0.45 per common share. In addition, Knight was issued 757,500 share purchase warrants to acquire 757,500 common shares of Pediapharm at an exercise price of $0.33 per Common share for a period of four years until March 30, 2019.
Biosenta Inc. (Biosenta) (CSE:ZRO) is offering a new CD to investors to fund ongoing development of its Tri-Filler industrial product and the third generation of its disinfectant, Purity. The CDs will have a maturity date of 36 months and an automatic conversion to equity if the share price trades at or above 20 cents for 30 days. The conversion price is 15 cents. The CD is interest bearing at 6% per annum and in addition. In the case of these CDs, a royalty component has been added equal to 6% as free cash flow becomes available.
Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZ) (the “Company”) announced that it has agreed to transfer its discovery library of roughly 100,000 unique compounds to the South Carolina Center for Therapeutic Discovery & Development (the Center) pursuant to a just concluded Material Transfer Agreement. This Agreement represents the beginning of a long-term relationship between the Company and the Center, which is part of The Medical University of South Carolina (MUSC), that will result in the continued use of the library for the discovery of drug development candidates for the Company in the areas of oncology, neurology, endocrinology and women’s health. The Center may make the library available to all investigators in the University of South Carolina system without restriction on its use and will own any therapeutic compounds discovered outside the Company’s areas of therapeutic interest.
Microbix Biosystems Inc. (TSX:MBX) (“Microbix” or the “Company”), an innovator of biological products and technologies, announced that it has entered into a long-term agreement with St. Cloud, Minnesota-based Microbiologics, Inc. (“Microbiologics”), a leading developer of biological controls and standards, pursuant to which Microbix will provide specialized viral material which will be incorporated into a line of full process controls, including instrument-specific sets, under Microbiologics’ Helix Elite™ Molecular Standards brand.
EnWave Corporation (“EnWave” or the “Company”) (TSXV: ENW) (FRA: E4U) is pleased to announce that the Company has signed a royalty-bearing Commercial License (the “License”) with Umland LLC (“Umland”), which grants Umland the exclusive right to use EnWave’s Radiant Energy Vacuum (“REV™”) technology in the United States of America (“U.S.”) to dehydrate ‘Cholov Yisroel’ cheese snack products. Cholov Yisroel is the highest kosher certification that can be bestowed on any dairy product. Umland will be exclusively supplying Cholov Yisroel cheese snack products to Point 32 Foods LLC (“Point32”). Point32 is a leader in marketing and selling high kosher and natural foods.
Knight Therapeutics Inc. (TSX:GUD) (“Knight” or the “Company”), a leading Canadian specialty pharmaceutical company, announced that it has committed to invest $10 million in HarbourVest Canada Growth Fund. L.P. (“HarbourVest Fund”). This investment is consistent with Knight’s strategy to leverage proven life science funds to help secure innovative pharmaceuticals for Canada and select international markets. Similar to the Teralys Capital Innovation Fund LP, the HarbourVest Fund is part of the Government of Canada’s Venture Capital Action Plan.