The Medicines Co.’s sale of its infectious disease business unit has closed, the Parsippany-based biopharmaceutical company announced Monday.
The company sold the unit to Connecticut-based Melinta Therapeutics Inc. for $215 million in guaranteed cash, about 3.3 million shares of Melinta common stock, royalty payments on a trio of products and other considerations.
“The sale of our infectious disease business to Melinta Therapeutics successfully completes a crucial step in the company’s strategic evolution, which we initially outlined in late 2015,” Dr. Clive Meanwell, The Medicines Co.’s CEO, said in a prepared statement. “The transaction positions the company to complete the implementation of our previously announced restructuring and apply our resources to the aggressive development of inclisiran, a first-in-class drug for lowering bad cholesterol. … The transaction significantly strengthens the company’s financial position, substantially reduces our cost structure and provides cash and liquidity.”
Meanwell said the company intends to maintain a continuing interest in Melinta through its equity stake. He added that many employees from the unit have joined the other firm.