There would have been little action this week if it wasn’t for European companies. AstraZeneca ponied up the money and Rigel Pharmaceuticals was the big winner in an otherwise slow week for dealmaking in the life sciences. While many people were surprised that investors weren’t too happy with the deal, sending Rigel’s share price down 16 percent for the week, there were some reasons for why they might have been unimpressed. Although AstraZeneca agreed to pay as much as $1.2 billion for exclusive worldwide rights to Rigel’s oral spleen tyrosine kinase inhibitor R788 late stage treatment for rheumatoid arthritis, $800 million of that total comes in the form of specified sales related milestones if the product achieves “considerable” levels of commercial success, levels that remained undisclosed. As a clinical stage company, Rigel has no revenue and needs the $100 million upfront cash that AstraZeneca is handing out. The company also needs a strong share price so it can raise money in the market when it needs to.

Rheumatoid arthritis represents a huge potential market, estimated to be approximately $13 billion globally in 2009 and treatment options are limited. As soon as the agreement is effective, AstraZeneca will make an upfront payment to Rigel of $100 million with up to an additional $345 million payable if specified development, regulatory and first commercial sale milestones are achieved. Rigel is also eligible for up to $800 million in sales related milestones and stepped up double-digit royalties on worldwide sales. AstraZeneca will assume responsibility for further development of R788 and will also receive exclusive rights to the South San Francisco-based biotech’s portfolio of oral Syk inhibitors, as well as for additional indications for R788 beyond rheumatoid arthritis. [see story]

Canadian biotech Thallion Pharmaceuticals and France’s LFB Biotechnologies will partner to develop and commercialize Shigamabs, Thallion's product candidate for the treatment of Shiga toxin-producing E. coli, or STEC, infections. Thallion granted LFB, an affiliate of the Laboratoire francais du Fractionnement et des Biotechnologies, an exclusive license for the commercial rights to Shigamabs in Europe, South America and other territories of strategic interest to LFB, including Russia, Turkey, China, South Korea and Northern African countries. Thallion retained commercial rights for the rest of world, including North America. Under the terms of their agreement, Thallion will be eligible to receive up to $130 million, including an upfront licensing fee of $2 million, funding for substantially all future clinical development costs, as well as milestone payments associated with the development, approval and commercial sales of Shigamabs. Thallion will also be eligible to receive tiered, double digit royalties based on product sales in all the LFB territories. Thallion will retain primary responsibility for the conduct of the clinical program. LFB will be responsible for the exclusive global manufacturing and supply of Shigamabs for both clinical study and commercial sales.

Three companies raised significant amounts of capital in venture rounds. U.K. biotech Immune Targeting Systems, working to develop universal flu vaccine, secured a series-A equity funding round extension for $13.6 million from Novartis Venture Fund which brought the total series A financing to $20.8 million. The company’s other key investors HealthCap, London Technology Fund, and Truffle Capital all participated. The funding will progress ITS’s lead candidate FP-01, a synthetic vaccine, through to the completion of phase 2 proof of concept efficacy studies.

San Diego-based Tioga Pharmaceuticals closed an $18 million equity financing from current investors Forward Ventures, New Leaf Venture Partners and BB Biotech Ventures, who were joined by new investor Genesys Capital Partners. Proceeds will be used to fund a phase 3 clinical trial for asimadoline for the treatment of patients with diarrhea predominant Irritable Bowel Syndrome. The trial, one of two registration trials required for approval in the United States, is a 600-subject randomized, double-blind, placebo-controlled, single-dose clinical trial in D-IBS patients and is scheduled to begin at 120 sites in the United States next month.

In September 2009, Ono Pharmaceutical licensed exclusive rights to develop and commercialize asimadoline in Japan, South Korea and Taiwan. Ono plans to start clinical studies in Japan during the second quarter of 2010. Tioga retains all other rights to the compound.

Eleven Biotherapeutics, a Cambridge, Massachusetts-based biotech focused on protein engineering, completed a $35 million series A financing co-led by Flagship Ventures and Third Rock Ventures. Proceeds from the financing will be used to build the research and development and business development teams for the company, in addition to advancing the company’s portfolio of engineered proteins through clinical proof of concept.