Life sciences capital markets and dealmaking took a breather during a roller-coaster week on Wall Street that ended with stocks falling over concerns about China’s decision to raise banks’ reserve requirements will impact global growth. A smattering of venture financings, acquisitions, and partnering deals punctuated the quiet week.

San Diego-based startup PatientSafe Solutions, a provider of patient safety solutions that help to eliminate hospital-based medical errors, closed a $30 million series B-1 financing led by TPG Biotech, Camden Partners, and Psilos Group, an existing investor. Other participants in the round included Valhalla Capital and previous investors Menlo Ventures, American River Ventures, Integral Capital Partners, and Shea Ventures. The funds will be used to complete development of the company's next generation product and further accelerate the adoption of comprehensive patient safety solutions in the U.S. hospital market. The company’s first product is used by approximately 90 hospitals across the country.

New Jersey-based Somnus Therapeutics, a developer of a delayed-release sleep-maintenance therapy, raised $15 million in a series A funding led by CTI Life Sciences Fund, which was joined by seed backer Care Capital. The money will be used to support the specialty pharmaceutical company’s mid-stage trial of SKP-1041, which is formulated to prevent middle-of-the-night wakefulness for people who don’t have difficulty falling asleep but have difficulty staying asleep.

Canadian biotech ProMetic Life Sciences raised $13 million in a loan and equity financing from Abraxis Bioscience. The transaction includes a $10 million loan for a term of five years, bearing annual interest of 5 percent. Reimbursement of the loan is due in five annual installments with Abraxis having the option to request that each annual installment be converted into ProMetic equity at future prevailing market price. Abraxis also invested $3 million at 18 cents per share to purchase 17,850,000 shares of ProMetic.
“What is great about this loan is that its repayment structure allows management to focus on increasing the share price thereby minimizing the potential dilutive effect of any subsequent conversion of the debt on existing shareholders,” said Pierre Laurin, ProMetic president and CEO. Following this transaction, Abraxis will own nearly 9.6 percent of ProMetic's outstanding common shares and has the right to acquire additional shares, which if exercised, would give it just under 20 percent ownership of ProMetic.

The only M&A activity of note was German pharma Boehringer Ingelheim’s tender offer for the 40 percent of Japanese over-the-counter drug maker SSP that it did not already own. The transaction is valued at $365 million and will expand Boehringer’s presence in the world’s second largest drug market. Boehringer, the sixth-largest global pharmaceutical company, specializes in prescription drugs. SSP specializes in over-the-counter drugs such as laxatives, cold medicines, and vitamins. SSP has agreed to the offer, which will begin on February 15.

Alexza Pharmaceuticals signed a deal with Biovail Laboratories, a subsidiary of Canadian specialty pharma Biovail, to develop and commercialize AZ-004 (Staccato loxapine) in the United States and Canada. AZ-004 is Alexza's lead program, based on the company's proprietary technology, the Staccato system. Alexza submitted an application to the U.S. Food and Drug Administration for marketing approval for Staccato loxapine in December 2009 as an inhalation product candidate developed for the rapid treatment of agitation in patients with schizophrenia or bipolar disorder.

As part of their agreement, Alexza will receive an upfront cash payment of $40 million and up to $90 million in potential milestone payments contingent on achieving certain conditions. Biovail will be responsible for commercialization while Alexza will manage the ongoing AZ-004 NDA review and approval process in connection with the initial indication. The collaboration provides for the development and commercialization of AZ-004 for multiple psychiatric and neurological indications and the symptoms associated with these indications.

Finally, Pfizer is expanding in the digital health arena. The pharma powerhouse entered into a partnership with Keas, an interactive service that enables experts to interact with patients online to help them take a more active role in their health and wellness. The collaboration on the Keas platform will enable health and wellness experts to author, sell and distribute personalized online care plans directly to patients. Pfizer and Keas will collaborate to develop care plans and related capabilities that seek to provide consumers, patients and their providers an intuitive, engaging, easy-to-use, and low-cost way to manage their health & wellness, prevention and care delivery. Keas offers a personalized “dashboard” to users so that they can keep track of their own health goals and make decisions about self-care as well as medical care.