The Medicines Company (MDCO) continues to work on expanding and strengthening its pipeline. In line with this goal, the company acquired Rempex Pharmaceuticals, Inc., a company with a focus on the development of treatments targeting multi-drug resistant gram-negative bacteria.
The acquisition terms included an upfront payment of $140 million to Rempex equity holders. Moreover, The Medicines Co. will make payments amounting to $334 million depending on the achievement of development and regulatory approval milestones ($214 million) and commercial milestones ($120 million).
Deal Strengthens Pipeline
With this acquisition, The Medicines Co.’s portfolio now has anti-infective assets like Carbavance, Minocin IV and RPX-602 in its portfolio. The company has also acquired a preclinical developmental program of novel candidates. Carbavance is the lead pipeline candidate at Rempex and is scheduled to enter pivotal studies next year – a new drug application (:NDA) could be submitted in 2016.
Minocin IV will be marketed by The Medicines Co. in the U.S. for resistant infections due to acinetobacter (multi-drug resistant gram-negative bacteria that is a growing problem across the world). Acinetobacter is mainly prevalent in intensive care units. Meanwhile, a regulatory application for RPX-602, an improved formulation of Minocin IV, will be submitted for approval in the U.S. next year.
This acquisition is in-line with The Medicines Co.’s efforts to build out its anti-infective portfolio. The acquisition brings medium as well as long-term operational and strategic value. The Minocin IV sales opportunity will allow the company to build relationships with the anti-infective community ahead of the launch of oritavancin, which could occur next year. The Medicines Co.’s shares were up 3.15% on the acquisition.
The Medicines Co. is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks include Actelion Ltd. (ALIOF), Vanda Pharmaceuticals, Inc. (VNDA) and Acorda Therapeutics, Inc. (ACOR). While Actelion and Vanda are Zacks Rank #1 (Strong Buy) stocks, Acorda is a Zacks Rank #2 (Buy) stock.Read the Full Research Report on MDCO
Read the Full Research Report on ALIOF
Read the Full Research Report on ACOR
Read the Full Research Report on VNDA
Zacks Investment Research
- Mergers, Acquisitions & Takeovers
- Pharmaceuticals & Drug Trials
- The Medicines Company