October 15, 2009 / 11:51 AM / 9 years ago

UPDATE 1-Canada's Vasogen narrows quarterly loss

*Share loss C5 cents vs C12 cents

*R&D costs C$700,000 vs C$1.1 mln (Adds details)

TORONTO, Oct 15 (Reuters) - Vasogen Inc VAS.TO said on Thursday it narrowed its quarterly loss as the small Canadian biotech company wound down operations.

Vasogen, which in August agreed to be acquired by IntelliPharmaCeutics, a closely held manufacturer of controlled-release drugs, reported a loss of C$1.2 million, or 5 Canadian cents a share for the period that ended Aug. 31, compared with a loss of C$2.6 million, or 12 Canadian cents a share for the same time last year.

The company said its research and development expenses for the quarter were C$700,000 down from C$1.1 million as it wound down operations.

Vasogen had one full-time employee after it fired its chief financial officer in July.

Under the terms of the deal with IntelliPharmaCeutics, Vasogen agreed to transfer all of its assets and liabilities to an entity owned by Cervus LP CVL_u.V, an Alberta-based limited partnership, for C$7.5 million cash.

That entity will then form a new subsidiary — to be called IntelliPharmaCeutics International Ltd — of which Vasogen shareholders will own 14 percent and IPC 86 percent.

The deal, expected to be completed later this year, must first satisfy a number of regulatory requirements. ($1=$1.03 Canadian) (Reporting by Scott Anderson, editing by Maureen Bavdek)

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