Biopharmaceutical company CorMedix purchased Melinta Therapeutics, a biopharmaceutical business based in Parsippany, for $300 million, the companies announced Aug. 7.
Under terms of the deal, CorMedix will pay Melinta $260 million in cash and $40 million in CorMedix equity issued to Melinta shareholders. The agreement also includes a regulatory milestone payment of up to $25 million and royalties.
Melinta is a commercial-stage company providing therapies for acute and life-threatening illnesses, and CorMedix is a biopharmaceutical firm focused on developing and commercializing therapeutic products for life-threatening diseases and conditions.
The deal strengthens and diversifies the commercial product portfolio for CorMedix.
“This acquisition represents a milestone achievement for Melinta and validates our position as a recognized leader in acute care,” said Christine Ann Miller, CEO of Melinta Therapeutics. “I’m incredibly proud of our accomplishments. Through our talented team’s dedication, we have undergone an extraordinary transformation to build a highly sought-after commercialization platform with sustainable growth and profitability.
“By joining forces with CorMedix, we’re creating a stronger organization that will accelerate both our mission to provide innovative therapies to people impacted by acute and life-threatening illnesses and our vision that all patients who need our therapies receive them.”
Melinta became privately owned by affiliates of health-care investment firm Deerfield Management Co. in 2020. The company has strengthened its global presence through ex-U.S. partnerships and seven business development deals, including strategic partnership with BARDA to advance two FDA-approved antibiotics for use in pediatric patients, as well as the development of one product for use against biothreat pathogens.
This acquisition will expand CorMedix’s commercial portfolio with six marketed, highly differentiated, hospital- and clinic-focused infectious disease products. The portfolio’s flagship product, Rezzayo, is approved for the treatment of candidemia and invasive candidiasis in adults.
The addition of Melinta’s team, innovative assets, and a pipeline expansion indication positions CorMedix to becoming a leader in the specialty pharmaceutical business.
“The combination of CorMedix and Melinta represents a compelling opportunity to create a specialty pharmaceutical leader with enhanced capabilities to serve patients,” said Joseph Todisco, chief executive officer of CorMedix. “Melinta’s proven commercial platform and portfolio perfectly complement our own, and once combined we will have the scale, resources, and expertise to accelerate innovation while creating significant value for our stakeholders.”
Evercore is acting as exclusive financial adviser and Fenwick & West LLP is acting as legal advisor to Melinta. Katten Muchin Rosenman LLP is acting as legal advisors for Deerfield Management.
CorMedix also reported second-quarter earnings of $19.8 million, or 28 cents a share, and revenue of $39.7 million in the period. Earnings and revenue each topped analysts’ estimates. The company’s shares have risen about 49% in the last 12 months.
