Canada

Angiotech cuts jobs, shutters facilities

John Carroll — Mon, 22 Sep 2008 11:49:14 -0400

Canada's Angiotech Pharmaceuticals is restructuring its operations as a badly needed investment of up to $300 million appears to be in doubt now. Ares Management and New Leaf Venture Partners had planned to sink $200 million to $300 million into a newly created subsidiary of the developer, but the company acknowledges now that recent events in the capital market are putting that financial aid in doubt.

Angiotech--a pharma and medical device company--says it will shutter research and manufacturing facilities in Rochester, NY, as well as other laboratory space, cut staff and delay the launch of a central venous catheter. Angiotech's coating process had been key to the success of drug-eluting stents, but that sector has come under considerable pressure from safety concerns. The company also moved its annual meeting to the last week in October.

"Our board of directors believes that despite the growth and progress we've seen this year in our medical products businesses, it is in the best interest of Angiotech and its shareholders to take action now to adjust our business and operating structure in order to achieve cost savings and to further focus our business initiatives," said CEO Dr. William Hunter.

- check out Angiotech's release
- read the report from the Canadian Press

Related Articles:
Angiotech suspends trial
FDA approves Angiotech's Hemo-Stream (Aug. 2007)

FDA puts partial clinical hold on MethylGene program

John Carroll — Mon, 18 Aug 2008 12:14:34 -0400

Canada's MethylGene says that as a result of its voluntary decision to halt enrollment in a new drug study, the FDA has put a partial clinical hold on its lead development program in cancer. The agency says it is waiting to see data and a risk mitigation plan to protect volunteers in the study. MGCD0103 is partnered with Celgene as a therapy for solid tumors and hematological malignancies.

"Under the partial clinical hold, patients currently enrolled in MGCD0103 clinical trials who are confirmed to have no signs or symptoms of pericarditis or pericardial effusion may continue in their respective studies," the company stated in a release. "MethylGene and Celgene are working closely together with the FDA to complete this package and communicate it with the FDA to obtain approval to commence enrollment of new patients as soon as possible."

- read the press release
- check out the report on the Canadian Press

Cytochroma gains CDN $45M, licensing deal

John Carroll — Wed, 30 Jul 2008 11:24:06 -0400

Canada's Cytochroma has garnered CDN $45 million in a Series C round led by Mitsubishi Tanabe Pharma Corporation. A group of existing investors including VentureLink Brighter Future Fund, Caisse de Dépôt et Placement du Québec, Novo A/S, Canadian Medical Discoveries Fund, Vengrowth Advanced Life Sciences Fund, T(2)C(2)/Bio 2000 Limited Partnership, GrowthWorks Canadian Fund and BDC Capital joined the round.

The money will be used to advance Cytochroma's portfolio of vitamin D-based therapeutics into mid- and late-stage clinical trials. Cytochroma's product candidates target disorders related to altered vitamin D metabolism in chronic kidney disease patients, and include CTA018 and CTAP201 for the treatment of secondary hyperparathyroidism and CTAP101 for vitamin D insufficiency.

Cytochroma granted MTPC an exclusive license to develop, manufacture and commercialize CTA018 in the United States and Asia and stands to gain up to CDN $105 million, which includes an upfront payment, milestone payments, and an equity investment. MTPC and Cytochroma will jointly develop and commercialize CTA018 in the United States. In Asia, including Japan, MTPC has full rights and responsibilities for product development and commercialization of CTA018 and will pay Cytochroma a royalty on sales.

- check out the Cytochroma release

MDS cuts development jobs in North America

John Carroll — Fri, 18 Jul 2008 10:45:49 -0400

Canada's MDS is slashing 210 jobs at its MDS Pharma Services and MDS Analytical Technologies divisions and is writing down the value of a Montreal facility. Most of the job cuts will fall on the Pharma Services side--a clinical research organization engaged in discovery work. The deepest cuts will be made in North America with some in Europe. MDS says its growth opportunities are bigger in Asia. MDS has a work force of 5,500. The company will take a $28 million charge and expects to see costs shaved by $20 million a year.

- check out the AP report

Investors turn cold shoulder to Canadian biotechs

John Carroll — Thu, 17 Jul 2008 11:11:22 -0400

Anyone tracking trends in biotech financing is likely to get a chill from the latest numbers on the Canadian biotech scene. According to Desjardins Securities, a growing level of aversion to risk helped cut the flow of venture capital to a paltry $150 million in the first quarter--down from $637 million for the same period a year ago. Analyst Yagi Maher says the sudden drop has less to do with an aversion to biotechnology as an investor reluctance to go with any small cap company these days. And developers have responded by sidelining some development programs as they wait for better terms and more cash availability.

- read the story from the National Post

Canada short on biotech workers

Maureen Martino — Fri, 27 Jun 2008 08:27:24 -0400

Canada's biotech sector is growing, but the country is struggling to find enough "job-ready" candidates. That's according to a new report from BioTalent Canada, which finds that the country is having trouble attracting and retaining biotech workers. The good news is that Canada's biotech sector is on the rise and has grown 77 percent since 1988, with small companies (under 50 employees) making up 80 percent of the industry. However, without experienced workers, these small companies will have trouble attracting venture investments, which could stifle the whole industry.

Colette Rivet, executive director for BioTalent, said the manner in which Canadian higher learning institutions are training students isn't preparing them for work in the industry. "What we're finding is a lot of the universities are training them more for academia than for the private world," said Rivet. "It's a very different kind of environment in the private world. You have to be entrepreneurial. You have to be able to wear different hats. You have to have business sense. You know, the innovative approach to things, it's very different from academia." Rivet recommended greater support from provincial governments in the form of more taxpayer dollars invested in the industry.

- see this report for more

Canada to team with California on stem cells

John Carroll — Thu, 19 Jun 2008 11:09:01 -0400

Canada is giving about $98 million to the Canadian Cancer Stem Cell Consortium so that the country's stem cell scientists can work in tandem with the California Institute for Regenerative Medicine. Canadian scientists will work in collaboration with other researchers taking a multi-disciplinary approach to studying stem cell therapies. And Australia's state of Victoria said that it also plans to arrange collaborative projects with CIRM.

"Through this relationship, CIRM money will continue to be earmarked only for research that takes place within California, but we can expand and coordinate our overall efforts in certain areas through collaborative efforts funded by our colleagues in Australia," said Alan Trounson, president of CIRM, in a statement.

- see this release on the partnership
- read the story from the San Diego Business Journal

IRX Therapeutics raises $25M Series A

Tue, 03 Jun 2008 06:59:55 -0400

New York-based IRX Therapeutics announced that it has raised $25 million in a Series A. The new money will be used to further develop IRX's cancer and viral disease product platform, including IRX-2 (citoplurikin), its lead candidate for cancer treatment. IRX researchers are developing a therapy that stimulates a coordinated cellular immune response that can enable a patient's own immune system to fight disease. IRX has reported positive mid-stage data and say they plan to launch a late-stage trial.

- check out IRX's release

ALSO: Canada's Inimex Pharmaceuticals has rounded up $22 million in venture funds to conduct the first clinical trials of its IDR drugs. Report

Migenix cuts costs to stretch cash

Tue, 27 May 2008 06:59:55 -0400

Canada's Migenix is cutting its staff in an effort to preserve cash. The company, which is developing the anti-infective drug Omigard, cut six workers, reduced its CEO's salary and downsized its board of directors as it awaits results from a Phase III trial of the drug. Migenix says it's also looking into additional sources of funding as it develops Omigard and another drug, MX-2401.

"We must preserve our cash during this very difficult financial market for biotech companies. With the significant value-driving milestones we expect during the second half of this year and the first half of next year--along with the potential start of Omigard(TM) related revenues--we must take these actions to extend our cash runway as long as possible while continuing to advance our greatest product opportunities," said Migenix's CEO Jim DeMesa.

- check out the release
- read this report for more

Canadian biotech may face funding crisis

Tue, 20 May 2008 06:59:57 -0400

Every country's biotech industry is different. And E&Y's report notes that Canada in particular is "facing a real funding crisis," says Rod Budd, Ernst & Young's Canadian biotech industry leader.

"In Canada, the industry market cap dropped 26 percent in 2007, funding to public companies dropped by almost US$900 million and the number of companies shrunk by 14 percent reflecting the long-awaited consolidation. It's getting harder and harder to attract investors to this area," says Budd.

- check out the Canadian release

SPOTLIGHT: Mystery Mistral merger is off

Wed, 07 May 2008 06:59:53 -0400

Canada's Mistral Pharma says its proposed merger with an unnamed U.S. specialty pharma company will not be completed. As a result, its bridge financing deal has been canceled and management has responded with "temporary layoffs" as it conserves cash and explores strategic alternatives. Three of its directors have resigned. Release

Sanofi Pasteur plans C$100M R&D facility in Canada

Wed, 16 Apr 2008 06:59:56 -0400

Score one win for Ontario province in the field of economic development. Sanofi Pasteur, the vaccine arm of Sanofi-Aventis, will build a C$100 million R&D facility in Toronto with the province chipping in C$13.9 million through its Biopharmaceutical Investment Program.

Researchers will target pediatric combination vaccines, pneumococcal protein vaccines and cancer vaccines. Look for the grand opening in 2010.

- check out the AFX report

Related Articles:
Sanofi licenses technology for new TB vaccine. Sanofi report
Maxygen, Sanofi Pasteur ink $24.5M vaccine deal. Sanofi report
Canada's streamlined approval process raises protests. Canada report
Canada's drug market slowing. Market report

SPOTLIGHT: India to convert sites into drug labs

Tue, 08 Apr 2008 06:59:53 -0400

After shuttering three of its oldest vaccine manufacturing facilities for failing to abide by good manufacturing practices, Indian officials have named an expert panel to convert the plants into drug testing laboratories. In addition to safety and efficacy trials, the labs will also be responsible for identifying counterfeit drugs. Drug regulatory officials from WHO and Canada will be brought in to advise the panel in the best way to structure the new labs. Article

Labopharm 'encouraged' by FDA's stance on Tramadol

Thu, 24 Jan 2008 06:59:55 -0500

Canada's Labopharm says that the FDA did not reverse its decision regarding an approvable letter for once-daily Tramadol, but it noted an encouraging new approach to a statistical method being used in a new analysis of the data. Also encouraging was the agency's request for a new meeting before Labopharm resubmits its application for approval. The company had appealed the FDA's conclusion that researchers couldn't demonstrate efficacy because the data omitted the outcomes for volunteers who had dropped out of the study.

"We are encouraged by the FDA's recent communication and are currently evaluating the proposal outlined in the letter," Labopharm's president and chief executive James Howard-Tripp, said in a release.

- check out the release

Related Articles:
Labopharm to attempt another tramadol appeal. Report
Labopharm hit by another tramadol delay. Report
Labopharm shares sink on approvable letter. Report
Labopharm touts pivotal Tramadol data. Report
Labopharm gets FDA OK to submit once-daily tramadol. Report

YM shares hit on clinical trial hold

Thu, 17 Jan 2008 06:59:57 -0500

Canada's YM BioSciences saw its stock take a nasty hit after it announced that the FDA had put a mid-stage trial of its AeroLEF pain therapy on hold as it seeks safety data on volunteers in earlier studies. YM BioSciences says the agency wants data on patients who experienced oxygen desaturation during clinical trials, adding that a subgroup analysis will be conducted. Shares were down 15 percent this morning.

"Data reported in May 2007 from our successful randomized Phase IIb trial demonstrated that patients had a statistical and clinical benefit from AeroLEF," said Dr. Diana Pliura, YM's executive vice president. "We remain strongly committed to the clinical development of this unique product.'

- see this release

Related Articles:
YM shares in meltdown on trial failure. Report
YM gets discouraging preliminary pain data. Report

Genizon pockets $31M CAD in fifth round

Mon, 07 Jan 2008 06:59:55 -0500

Canada's Genizon BioSciences has garnered $31 million Canadian in its fifth round of financing. The lead investor is BTF B.V. of Haarlem, The Netherlands, which specializes in late-stage biotech companies.

"Genizon's outstanding DNA resources and a platform that is applicable to many stages of drug development make a compelling investment case," said Jan Mellegers, CEO of BTF. "The company has impressed us with its ability to not only discover many genes in each disease, but also to assemble these into GeneMaps that lead to new drug targets and biomarkers."

- here's the release

ALSO: ZyGem says it has closed its first round of financing. Release

Related Article:
Pfizer inks genetic license with Genizon. Report

Axcan accepts $1.3 billion buyout offer

Thu, 29 Nov 2007 06:59:57 -0500

Canada's Axcan Pharma is being bought out for $1.3 billion by the private equity group TPG Capital. Shareholders will get a 28 percent premium over Wednesday's close while Axcan gains a new owner as it pushes ahead with new gastrointestinal therapies. Just a few weeks ago Axcan inked a deal with Cellerix SL for the rights to Cx401, a mid-stage drug in development for the treatment of perianal fistulas. Axcan finished fiscal 2007 with $349 million in revenue.

"As an independent, private company with strong backing from TPG, we will be able to continue our focus on the development of innovative, high-quality medical products and become an even stronger partner to health professionals in the gastrointestinal arena," said Frank Verwiel, president and CEO of Axcan.

- see this release or more
- check out the AP report on the buyout

Related Article:
Axcan drug flunks Phase III trial. Report

QLT posts 'for sale' sign

Wed, 28 Nov 2007 06:59:57 -0500

The board at Canada's QLT has decided to put itself up for sale after concluding that its business plan won't work. The announcement comes after sales of Visudyne, an eye therapy developed by QLTs, plunged 43 percent in the third quarter. Competition for that market already forced QLT to cut 80 employees last year. QLT has a mid-stage trial going on for a combination therapy of Lucentis and Visudyne.

"The board of directors believes that the net value of the assets of the company exceeds the value represented by the stock price," said Chairman Boyd Clarke. "We had hoped to address that disconnect through the deployment of our current strategic plan. However, as the gap continues to widen we have decided that, other than as contractually required, making significant additional investments in all of our current products and technologies would be inconsistent with our objective of maximizing shareholder value."

- see QLT's release
- read the report from Thomson Financial

Related Articles:
QLT gains drug delivery tech in $42M buyout. Report
Canadian biotech stocks suffer as bad news mounts. Report
QLT delays clinical program on Atrigel. Report
QLT says therapy fails Phase II trial. Report
QLT slashes spending as competition looms. Report

ALSO NOTED: NicOx posts positive osteoarthritis data; Genzyme snares diagnostics unit; Infinity regains program rights; and muc

Mon, 12 Nov 2007 06:59:50 -0500

> France's NicOx has posted positive data from a late-stage study of naproxcinod for osteoarthritis. Release

> Genzyme is plunking down $56 million to buy the diagnostics arm of Canada's Diagnostic Chemicals. Report

> Infinity Pharmaceuticals has regained from MedImmune all development and worldwide commercialization rights for Infinity's Hedgehog cell-signaling pathway inhibitor program, including its lead candidate IPI-926. Release

> Crucell subsidiary Berna Biotech has sold all the 2.9 million shares it owned in Switzerland's Pevion Biotech to other shareholders of Pevion. Release

> Cambria Biosciences has been awarded five grants from multiple organizations totaling $5 million. Release

> A new study may throw a big wet blanket over the market for ADHD drugs. According to the BBC, which obtained data from an unfinished, long-term study, meds aren't an effective way to treat attention deficit hyperactivity disorder. Report

> Free pens and notepads and magnets emblazoned with drug logos--what would a hospital be without them? It appears Pittsburgh is about to find out. Report

> Maybe drug-coated stents aren't so bad after all. Report

> The Vioxx saga may seem to be drawing to a close, but the chatter about it has just begun. Report

And Finally… Optimism is hard-wired into most of our brains, researchers say. One group that has proved to be an exception to the rule: Lawyers. Article

Scientists raise warnings over MS drug study risks

Thu, 01 Nov 2007 07:59:55 -0400

American scientists are raising a red warning flag over proposed studies of the drug minocycline for several neurodegenerative conditions. Reporting in Lancet Neurology, the researchers say that patients taking the off-patent minocycline for Lou Gehrig's disease declined more rapidly than the control group taking a placebo. That report comes as Canada's MS Society is funding a Phase III trial to determine if the drug can work to slow MS if it is administered during the early stage of the disease.

- check out the report from the Canadian Press

Related Articles:
Antibody stimulates natural repair of MS damage. Report
Natural protein used to combat multiple sclerosis. Report