Blog Exposure - The Medicines Co. Completes Divestiture of Infectious Disease Business Unit to Melinta Therapeutics
Stock Monitor: Melinta Therapeutics Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 10, 2018 / Active-Investors.com has just released a free research report on The Medicines Co. (NASDAQ: MDCO). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MDCO as the Company's latest news hit the wire. On January 08, 2018, the Company, a biopharmaceutical organization that creates transformational solutions in cardiovascular care, declared that it has closed the sale of its infectious disease business unit to Melinta Therapeutics Inc. (NASDAQ: MLNT) ("Melinta"), an American commercial-stage biopharmaceutical Company. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Medicines and Melinta Therapeutics most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=MDCO
www.active-investors.com/registration-sg/?symbol=MLNT
Total Transaction Consideration
The Medicines has agreed to sell its infectious disease business unit to Melinta for $270 million, which includes $215 million of guaranteed cash plus 3.3 million shares of Melinta's common stock. Moreover, The Medicines has also agreed on 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). Besides, Melinta will also be responsible for all royalty, milestone, and other payment obligations relating to those products.
An Important Development in The Medicines' Restructuring Program
The divestiture of The Medicines' infectious disease business is part of the Company's strategic evolution. The Medicines had announced a restructuring program in October 2017, wherein it outlined plans to divest its infectious disease business and reduce its employee headcount to below 60 people, excluding those in the infectious disease business.
Transaction to Strengthen the Company's Financial Position and Provide Opportunity to Develop Inclisiran
Stronger Financial Position - This transaction would significantly strengthen The Medicines' financial position, substantially reduce its cost structure, and provide cash and liquidity, which would help it develop Inclisiran, a first-in-class drug for lowering bad cholesterol (LDL-C). The Company intends to share additional details about its cash position and plans as part of its fourth quarter fiscal 2017 and full fiscal year 2017 financial results.
More Resources to Develop Inclisiran - The Company will employ the additional resources towards the aggressive development of Inclisiran through the anticipated completion of the ongoing Phase-III development program and clinical data readout in the second half of 2019. Besides, now the Company will also be able to fund Inclisiran's manufacturing development, and the recruitment with initial follow-up of its cardiovascular outcomes trial, without the need to sell any equity. Therefore, The Medicines will focus on this potentially transformational new treatment option, with the aim of making it broadly available to the millions of at-risk, often non-adherent, patients worldwide who carry the potentially deadly risk of high LDL-C.
Additional Future Value - Moreover, the divestiture also provides an opportunity to generate additional value through a robust royalty structure on future sales of its divested ID products and the ownership of a considerable equity stake in Melinta.
Clive Meanwell, M.D., Ph.D., Chief Executive Officer (CEO) of The Medicines, reinstated his confidence in Melinta and its management team and employees. He also shared that he is thrilled that many of his 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.
Strategic Benefits for Melinta
For Melinta, the acquisition would create a focused portfolio of high-value marketed assets with significant commercial synergies. This will help Melinta maximize the value associated with the marketed products and drive the Company to profitability.
Besides, it would also develop its commercial team, which has been created for the launch of Baxdela (delafloxacin), with experienced anti-infective professionals from The Medicines who can drive value across the combined portfolio.
Stock Performance Snapshot
January 09, 2018 - At Tuesday's closing bell, The Medicines' stock marginally dropped 0.85%, ending the trading session at $26.79.
Volume traded for the day: 1.04 million shares.
Stock performance in the last month – up 1.67%
After yesterday's close, The Medicines' market cap was at $2.04 billion.
The stock is part of the Healthcare sector, categorized under the Drugs - Generic industry. This sector was up 0.9% at the end of the session.
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