The Medicines Company Announces Closing of Divestiture of Infectious Disease Business Unit to Melinta Therapeutics
January 08 2018 - 7:00AM
Business Wire
The Medicines Company (NASDAQ:MDCO) today announced the closing
of the sale of its infectious disease business unit to Melinta
Therapeutics, Inc. (NASDAQ: MLNT) for consideration consisting of
$215 million of guaranteed cash, approximately 3.3 million
shares of Melinta common stock, tiered royalty payments of 5% to
25% on worldwide net sales of Vabomere™, Orbactiv® and Minocin® IV,
and the assumption by Melinta of all royalty, milestone and other
payment obligations relating to those products.
“The sale of our infectious disease business to Melinta
Therapeutics successfully completes a crucial step in the Company’s
strategic evolution, which we initially outlined in late 2015,”
said Clive Meanwell, M.D., Ph.D., Chief Executive Officer of The
Medicines Company. “The transaction positions the Company to
complete the implementation of our previously-announced
restructuring and apply our resources to the aggressive development
of inclisiran, a first-in-class drug for lowering bad cholesterol
(LDL-C). We will now focus on this potentially transformational new
treatment option, expecting to make it broadly available to the
millions of at-risk, often non-adherent, patients worldwide who
carry the potentially deadly and costly risk of high LDL-C. The
transaction significantly strengthens the Company’s financial
position, substantially reduces our cost structure and provides
cash and liquidity which we believe will allow us to advance
inclisiran through the anticipated completion of the ongoing Phase
III development program and clinical data readout in the second
half of 2019, and also fund associated manufacturing development as
well as the recruitment with initial follow-up of our
cardiovascular outcomes trial, without the need to sell equity in
the Company. Furthermore, the transaction provides the opportunity
to generate significant additional value through a robust royalty
structure on future sales of our divested ID products and the
ownership of a substantial equity stake in Melinta. That continuing
interest reflects our enormous confidence in Melinta and its
management team and employees. We are delighted that many of our
former infectious disease colleagues have joined Melinta and now
have the opportunity to solidify its position as the world’s
leading, pure-play antibiotics company.”
The Company expects to provide additional details regarding its
cash position and plans as part of its fourth quarter and full year
2017 financial results.
About The Medicines Company
The Medicines Company is a biopharmaceutical company driven by
an overriding purpose – to save lives, alleviate suffering and
contribute to the economics of healthcare. The Company’s mission is
to create transformational solutions to address the most pressing
healthcare needs facing patients, physicians and providers in
cardiovascular care. The Company is headquartered
in Parsippany, New Jersey.
Forward-Looking Statements
Statements contained in this press release about The Medicines
Company that are not purely historical, and all other statements
that are not purely historical, may be deemed to be forward-looking
statements for purposes of the safe harbor provisions under The
Private Securities Litigation Reform Act of 1995. Without limiting
the foregoing, the words "believes," "anticipates" "expects" and
“potential” and similar expressions, are intended to identify
forward-looking statements. These forward-looking statements
involve known and unknown risks and uncertainties that may cause
the Company's actual results, levels of activity, performance or
achievements to be materially different from those expressed or
implied by these forward-looking statements. Important factors that
may cause or contribute to such differences include the ability of
the Company to successfully achieve the expense reduction expected
to result from the transaction and restructuring; the commercial
success of the infectious disease assets acquired by Melinta; the
ability of the Company to effectively develop inclisiran; and such
other factors as are set forth in the risk factors detailed in the
Company's Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on November 9, 2017, which are incorporated
herein by reference. The Company specifically disclaims any
obligation to update these forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20180108005961/en/
The Medicines CompanyMediaMeg Langan, 973-290-6319Vice
Presidentmargaret.langan@themedco.comorInvestor RelationsKrishna Gorti, M.D.,
973-290-6122Vice President, Investor
Relationskrishna.gorti@themedco.com
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