The Medicines Co. sells infectious disease unit to Melinta Therapeutics
The Medicines Company signed a definitive agreement to sell its portfolio of infectious disease drugs to Melinta Therapeutics for upfront and guaranteed payments totaling $270 million, plus royalty payments.
The portfolio includes Vabomere (meropenem/vaborbactam), an antibiotic the Food and Drug Administration approved in August as a treatment for complicated urinary tract infections; Orbactiv (oritavancin), an antibiotic used to treat acute bacterial skin and skin structure infections; and Minocin IV (minocycline), an antibiotic indicated for a broad range of infections.
Melinta will pay $165 million in cash and $55 million in stock up front, two payments of $25 million each 12 months and 18 months after the transaction closes, and tiered royalties on net sales of the three drugs.
The Medicines Company will use the proceeds to continue development of inclisiran, an investigational Phase III PCSK9 inhibitor being developed in partnership with Alnylam Pharmaceuticals as a potential treatment for high cholesterol. If approved, inclisiran would compete with Amgen’s Repatha (evolocumab) and Sanofi and Regeneron Pharmaceuticals’ Praluent (alirocumab).
The Medicines Company is retaining ownership of its only other approved drug, Angiomax (bivalirudin), an anticoagulant that generated $50.6 million in net sales in 2016.
The companies expect the transaction to close in the first quarter of next year, pending regulatory approval and other customary closing conditions.