The Medicines Company to Sell Infectious Disease Business to MelintaBy
The Medicines Company, a Parsippany, New Jersey-based pharmaceutical company, has agreed to sell its infectious disease business unit to Melinta Therapeutics, a New Haven, Connecticut-based biopharmaceutical company, for $270 million in upfront consideration and guaranteed payments.
The $270 million includes $215 million of guaranteed cash and $55 million of Melinta common stock. The Medicines Company also agreed to pay tiered royalty payments of 5% to 25% on worldwide net sales of Vabomere (meropenem and vaborbactam), a drug for treating urinary tract infections; Orbactiv, an antibiotic; and Minocin IV (minocycline), an antibacterial drug.
The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the receipt of Melinta shareholder approval for the issuance of Melinta common stock to the company and in connection with its financing for the transaction. Holders of a majority of Melinta’s outstanding common stock have entered into binding agreements to vote in favor of the transaction.
In October 2017, The Medicines Company announced a restructuring program under which the company announced plans to divest its infectious disease business and reduce its employee headcount to under 60 people (excluding the infectious disease business); as of February 2017, the company had 410 employees. The company said the restructuring allocates resources to inclisiran, a proprotein convertase subtilisin/kexin type 9 (PCSK9) inhibitor being developed as an anti-cholesterol medicine, for a Phase III clinical program by preparing investigational sites and manufacturing drug supply.
Source: The Medicines Company