Two New York-area specialty firms saw their disparate strategies come together in a single deal announced Nov. 29 as Melinta Therapeutics Inc. agreed to acquire The Medicines Co.’s three-product antibiotic franchise and commercial team for roughly $270m plus earn-outs.
The transaction enables TMC to make good on a strategy announced weeks ago to downsize significantly and focus on Phase III hypercholesterolemia candidate inclisiran. Concurrent with the deal, Deerfield Management announced a financing transaction giving the private equity firm a 10% ownership stake in Melinta. (See box
Deerfield Goes Into Business With Melinta, TMC
- Concomitant with the anti-infective business transaction between Melinta and The Medicines Co., New York-based Deerfield management is providing debt and equity financing to the companies under a commitment letter. The details:
- Melinta gets up to $240m in financing, including an initial $190m backed by a 10% equity stake in Melinta and debt. The debt will have a six-year term with an interest rate of 11.75%, while the equity is being provided at a 10% discount to the stock’s closing price on the day of the commitment letter.
- Melinta also can access an additional $50m in debt within 24 months of closing, contingent on the company achieving a $75m annualized sales threshold measured on the basis of its most recent six-month business period
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