Finance, Grants, Deals

Genmab A/S has announced an amendment to its commercialisation deal with GlaxoSmithKline for ofatumumab, effectively ending its right to co-promote the drug in the US and the Nordic area.

Celtic Pharma Holdings Advisors LLP (CPHA) has launched a new fund that will invest in biotech companies with early stage products at a time when many venture capital companies have shifted their attention to companies with late-stage products.

A London-based biopharmaceutical company with an early clinical-stage obesity product has been bought by Wyeth of the US in a deal valued at up to £100 million.

OncoMethylome Sciences SA is to raise about €8.4 million with a private equity placement among three institutions, according to an announcement on 16 December 2008.

Pharming Group NV of the Netherlands has purchased  €20.1 million of its 6.875% convertible bonds at face value with a combination of cash and shares.

Newron Pharmaceuticals SpA has concluded a deal with YA Global Investments LP that allows Newron to choose when, and in what amounts, to sell its shares over a three-year period for a total of up to CHF 30 million.

Many small companies in the biotech arena are worried about running out of cash to fund their research programmes because of the liquidity problems in the international banking system. Biopharmaceutical companies have their own anxieties as demonstrated by what appears to be a secular increase in the number of very expensive failures in late-stage clinical tests. However, an option deal might be a way of marrying the disparate needs of little pharma and big pharma. Here is an example of how option strategy works in practice.

GlaxoSmithKline has told stock exchanges in Switzerland and the UK that it has increased its shareholding in Addex Pharmaceuticals Ltd to at least 5% of the company’s outstanding capital. The purchases were made by GSK’s investment arm, SR One Ltd, and follow earlier incremental buying in September, 2008.

JADO Technologies GmbH, a closely-held German company specialising in a new type of lipid technology, has raised €3.9 million in a series B financing led by the Berlin-based Peppermint Financial Partners.

Sygnis Pharma AG has raised about €18.3 million with new equity under a long-standing contractual agreement with its two principal shareholders, dievini Hopp BioTech holding GmbH & Co. KG and BASF SE, which will own respectively 36% and 13% of the company.