MEDICAL BRIEFS

CMDF hikes provincial credit by 5 per cent

The Canadian Medical Discoveries Fund (CMDF) has been given a new incentive to attract investment courtesy of a new tax credit introduced last fall by the Ontario government. As a labour-sponsored venture capital corporation (LSVCC) dedicated to investing in research-intensive businesses, CMDF qualifies for the Research-Oriented Investment Fund (ROIF) program, allowing it to offer an addition 5% tax credit to those buying CMDF shares. That's on top of the 15% currently offered by the province for investment in LSVCCs and the 15% federal tax credit, pushing the total tax credit to 35% on a maximum annual contribution of $5,000 per investor. The ROIF was introduced last October and was unveiled in time for the current RRSP season - traditionally the time when LSVCCs raise the bulk of their funding. It's intended to increase the amount of investment in research-oriented businesses. The higher tax credit was achieved by amendments to the Ontario Community Small Business Investment Funds Act and is subject to specified research business investment....

Spectranetics expands Canadian clinical trials

Colorado-based Spectranetics Corp has received approval from Health Canada to expand its human trials for the use of excimer (higher laser energy) devices for treating certain, difficult-to-treat coronary lesions. The trials will be conducted on patients at the Montreal Heart Institute and Victoria's Royal Jubilee Hospital whose coronary arteries have at least 80% blockage and evidence of calcification and have not responded to balloon angioplasty or guidewires. The participating institutions also conducted pilots evaluations of Spectranetics' excimer laser products before the latest approval....

Prairie Plant scores $5.7 million weed contract

Saskatoon's Prairie Plant Systems Inc (PPSI) has been awarded a $5.7-million contract by Health Canada to provide research-grade marijuana to meet Canada's medical and research needs. The plant will only be made available for those participating in structured research programs and those authorized for medical purposes. The marijuana will be grown in an underground facility near Flin Flon MA and PPSI will be responsible for cultivating and drying the plants, conducting laboratory analyses throughout the life cycle, rolling and storing marijuana cigarettes and distributing the product to authorized recipients. PPSI was chosen after a competitive process which included an evaluation committee comprised of members from Agriculture and Agri-Food Canada, Health Canada, Public Works and Government Services Canada and the Royal Canadian Mounted Police....

Qbiogene Inc raises another $31 million

Qbiogene Inc has raised another $31 million in private financing to continue its strategy of making further acquisitions in the area of research technology products for genomics, gene therapy and gene delivery. Formerly Quantum Biotechnologies of Montreal, Qbiogene has since merged with BIO 101 (US) and Appligene (France) and has raised a total of $40 million in the past year. Participating in the latest round of financing is BioCapital Investments and the Quebec Solidarity Fund, as well as Singapore-based Vertax Technology Fund III Ltd (lead investor), and funds from Taiwan, Switzerland, and Germany. It's the second time BioCapital has invested in Qbiogene, which helped restructure the former Quantum Biotechnologies and bring in a new management team. The firm has entered strategic alliances with several major biotechnology and pharmaceutical firms, including Molecular sensing and Glaxo Wellcome. The alliance with the latter will see Qbiogene further develop Glaxo technology for recombinant adenoviruses....

BioChem shares rise pending completion of take over

Shares in BioChem Pharma Inc continue to increase in value following last month's takeover bid by UK-based Shire Pharmaceuticals Group plc. The share exchange values BioChem at $5.9 billion .BioChem shares are currently trading on the TSE at approximately $50 each....