Struggling The Medicines Company Deals its Infectious Disease Business to Melinta
The Medicines Company is selling its infectious disease business unit to Melinta Therapeutics for $270 million.
Melinta will be paying The Medicines Company $165 million cash up front, and $55 million worth of Melinta common stock. Another $50 million ($25 million x2) in cash will be paid 12, and 18 months after closing. Melinta will also pay royalties of Vabomere, Orbactiv and Minocin IV.
“Today marks a significant milestone for the Company, as we take another step along the strategic pathway we outlined in late 2015,” said Fredric Eshelman, The Medicines Company’s executive chairman, in a statement. “In further narrowing our focus onto inclisiran, we see great opportunity for patients, physicians, healthcare providers and shareholders. Together, the Company’s Board and management team will work to drive inclisiran forward, while supporting Melinta in maximizing the value of our antibiotic portfolio and creating significant additional value and liquidity for our shareholders through a robust royalty structure on future sales of that portfolio and our ownership of Melinta common stock.”
The deal is expected to close in the first quarter of 2018.