Cangene, Apotex Holdings deal

CNJ, which is majority owned by Apotex Holdings, acquired from Apotex Research Inc. the worldwide rights to deferiprone, a treatment for blood disorders. CNJ issued five-year warrants to Apotex Research to purchase 5.3 million CNJ common shares at C$2.32 per share. In the U.S., CNJ would have an exclusive license for an undisclosed period, after which it would become non-exclusive. European rights are non-exclusive.

CNJ will pay up to C$10 million (US$7.4 million) to reimburse Apotex's development costs, which will be payable quarterly at a rate of 25 percent, net of expenses, after the first C$30 million in profits have been earned. Apotex also would receive a 10 percent royalty on net sales. ...