Blog Exposure - Melinta Therapeutics to Acquire Infectious Disease Business from The Medicines Co.

Stock Monitor: Medicines Co. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 01, 2017 / Active-Investors issued a free report on Melinta Therapeutics, Inc. (NASDAQ: MLNT) ("Melinta"), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=MLNT as the Company's latest news hit the wire. On November 29, 2017, the Company declared that it has entered into an agreement to acquire the infectious disease business from The Medicines Co. (NASDAQ: MDCO). The acquisition also comprises the purchase of three marketed products - recently approved and launched Vabomere (vaborbactam/meropenem), and established commercial products Orbactiv (oritavancin), and Minocin IV (minocycline). Sign up now for our free research reports at:

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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, Melinta Therapeutics most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage MLNT and MDCO are available at:

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Strategic Benefits from the Acquisition

Focused portfolio of high-value marketed assets - Melinta expects this transaction to create a focused portfolio of high-value marketed assets with noteworthy commercial synergies. This will, in turn, help Melinta to maximize the value of its marketed products and boost profitability.

The combined infectious disease product portfolio of Melinta and The Medicines would enhance Melinta's multi-channel strategy of delivering antibiotic solutions for ABSSSI (acute bacterial skin and skin structure infections) and gram-negative infections within the hospital, emergency department, and community settings.

Mix of an Experienced Commercial Team - Besides, the acquisition would also strengthen Melinta's commercial team, with experienced anti-infective professionals from The Medicines who have the skills to enhance value across the combined portfolio. This experienced team of focused antibiotic experts, as well as the therapeutic scale, would help maximize the value of the portfolio. This enhancement to the commercial team would also be helpful in the launch of Baxdela (delafloxacin).

Dan Wechsler, President and Chief Executive Officer (CEO) at Melinta, stated that the acquired assets would prove to be an ideal complement to Melinta's existing business. This would enable the Company to focus on multiple valuable segments of the anti-infectives market simultaneously.

Acquisition Includes Purchase of Vabomere, Orbactiv, and Minocin

The acquisition includes the purchase of global rights for three marketed products as well as the business supporting those products.

Vabomere - The recently launched Vabomere is an innovative fixed-dose combination agent, which comprises vaborbactam, a beta-lactamase inhibitor, and meropenem, the leading carbapenem. The US Food & Drug Administration (FDA) approved Vabomere in August 2017; it was indicated for the treatment of adult patients with complicated urinary tract infections (cUTI) including pyelonephritis caused by designated susceptible Enterobacteriaceae. At present, Vabomere's Marketing Authorization Application is under regulatory review by the European Medicines Agency (EMA) for cUTI.

Orbactiv - Orbactiv is an injectable product, which has already been approved by the FDA and the EMA for the treatment of adults with ABSSSI caused by susceptible designated gram-positive bacteria including methicillin-resistant staphylococcus aureus (MRSA).

Minocin IV - Minocin IV, which is an injectable product, is a tetracycline derivative approved in the US for the treatment of infections caused due to susceptible strains of several important designated gram-positive and gram-negative pathogens. It treats infections that occur due to Acinetobacter species, which mostly occur in hospitalized patients.

Of these, the FDA has granted priority review status to Vabomere and Orbactiv. These have also been approved as Qualified Infectious Disease Products (QIDP), in accordance with the Generating Antibiotics Incentives Now (GAIN) Act, which secured five-year regulatory extensions of exclusivity for each product.

Clinical Trials for Melinta's Marketed Products

This acquisition would help Melinta enhance its commercial portfolio, led by Baxdela, which is a novel fluoroquinolone antibiotic recently approved by the FDA for the treatment of patients with ABSSSI. It is expected to be launched in Q1 2018.

Baxdela therapy is considered to be unique and differentiated from all other therapies as it can be initiated on either IV or oral formulations, has full coverage of gram positive pathogens, including MRSA, and gram negative pathogens, has tolerability and fixed dose simplicity, and has limited drug and disease interactions.

Melinta intends to proceed with the additional clinical studies for enhancing and expanding the potential for these four products, i.e. Vabomere, Orbactiv, Minocin, and Baxdela. The Company plans to fund the discovery and development of its novel class of antibiotics through the ESKAPE (Enterococcus faecium, Staphylococcus aureus, Klebsiella pneumoniae, Acinetobacter baumannii, Pseudomonas aeruginosa, Enterobacter species, and Escherichia coli) pathogen program.

Deal Structure and Financing

As per the acquisition agreement, the purchase price comprises:

• A cash payment of $165 million and the issuance of approximately $50 million worth Melinta common stock to The Medicines, divided by 90% of the volume weighted average price for the trailing 10 trading-day period ending 3 trading days prior to closing;

• A payment of $25 million by Melinta to The Medicines at each of the twelve and eighteen month anniversaries of the closing date; and

• Royalty payments from Melinta to The Medicines, depending upon the tiered net sales of the acquired products in certain jurisdictions.

Transaction Funding Details

• Melinta intends to fund the transaction by a mix of debt and equity. At the time of closing, Melinta will enter into a Loan and Security Agreement with Deerfield Management Co. L.P., wherein Deerfield, and certain funds managed by Deerfield, will initially provide a total of $190 million in debt and equity financing.

• Subsequently, they will grant an additional $50 million of debt to Melinta within 24 months of the acquisition close upon the achievement of certain sales thresholds.

• Apart from the Deerfield funding, some investors have also committed to make a $30 million equity investment at closing. These would be utilized towards the initial cash acquisition price of $165 million and to pay off the existing debt of $40 million.

Stock Performance Snapshot

November 30, 2017 - At Thursday's closing bell, Melinta Therapeutics's stock surged 11.84%, ending the trading session at $17.00.

Volume traded for the day: 534.18 thousand shares, which was above the 3-month average volume of 159.44 thousand shares.

Stock performance in the last month – up 47.83%; previous three-month period – up 11.48%; and year-to-date - up 21.43%

After yesterday's close, Melinta Therapeutics's market cap was at $178.53 million.

The stock is part of the Healthcare sector, categorized under the Biotechnology industry. This sector was up 0.8% at the end of the session.

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