As promised, The Medicines Company has found a buyer for its infectious disease unit. Wheeling and dealing its way through the year, Melinta Therapeutics has stepped up with an agreement to acquire the group for $270 million in cash and some stock, clearing the way for The Medicines Company to concentrate on a new PCSK9 therapy.
The Medicines Company $MDCO — which has been restructuring over the past two years — also gets tiered royalties ranging up to 25% on Vabomere, Orbactiv and Minocin IV. And Melinta moves up the ladder in the antibiotics field, just three months after striking a deal to merge troubled Cempra $CEMP into the company, taking over its antibiotics pipeline and one approved therapy.
That acquisition came just weeks after Melinta completed an R&D odyssey with an FDA approval for the antibiotic delafloxacin (Baxdela).
The deal today works like this:
The Medicines Company gets $165 million in cash from the antibiotics company, along with $55 million in stock. At the one-year anniversary Melinta $MLNT will pay $25 million with another $25 million due six months later.
Melinta’s shares are up 7% on the news, with The Medicines Company stock sliding 2.4%.
Medicines Company CEO Clive Meanwell put it like this:
We believe the transaction announced today will enable us to achieve three critical goals for the Company and our shareholders. First, we expect the transaction, when combined with our previously-announced restructuring, to provide sufficient cash and liquidity to advance inclisiran through the anticipated completion of the ongoing Phase III development program and final data readout in the second half of 2019, associated manufacturing development, and recruitment with initial follow-up in our cardiovascular outcomes trial – alleviating the need to sell equity in the Company. Second, the transaction will allow us to optimize and focus our efforts and resources on inclisiran, which we believe has the potential to be a competitively-dominant, blockbuster product for the millions of at-risk, often non-adherent, patients worldwide who continue to struggle with high cholesterol given the limitations of available therapies. Third, the transaction recognizes the value of our novel antibiotic products, Vabomere, Orbactiv and Minocin IV, places many of our outstanding employees into Melinta, a highly-capable, pure-play, emerging leader in the antibiotics space, and allows The Medicines Company and our shareholders to participate in the upside potential of the commercialization of these products.
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