Melinta Therapeutics, Inc. (NASDAQ: MLNT) shares rose as The Medicines Company (NASDAQ: MDCO) agreed to sell its infectious disease business unit to Melinta for $270 million.
A news release out Wednesday said New York-based Deerfield Management Company announced today it has committed to provide up to $240 million in debt and equity financing to Melinta and up to $100 million in debt financing to The Medicines Company in connection with Melinta's acquisition of the infectious disease business from The Medicines Company.
The acquisition includes the purchase of global rights for Vabomere, Orbactiv and Minocin IV and the business unit supporting those products.
Upon the closing of the acquisition, Deerfield will provide $190 million in debt and equity funding to Melinta. Furthermore, Melinta will have the option to draw up to $50 million of debt within 24 months of the closing of the transaction subject to achieving certain sales thresholds.
In addition, Deerfield has agreed to provide up to $100 million in drawable debt financing to The Medicines Company. These financings are subject to the terms and conditions of the commitment letters entered into by Deerfield with each of Melinta and The Medicines Company.
Melinta CEO Dan Wechsler commented, "Deerfield was critical to this transaction. Its flexible approach and deep understanding of the infectious disease market place enabled them to act quickly and to provide a customized financing solution to meet the needs of Melinta and The Medicines Company”.
Melinta shares climbed 40 cents, or 2.7%, to $15.40, while shares in The Medicines Company declined in price 66 cents, or 2.2%, to $29.55.
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