The Medicines Company
) recently exercised its option to purchase all the outstanding
capital stock of Dutch company, ProFibrix B.V.
The company exercised its option following the announcement of
positive phase III data on Fibrocaps, ProFibrix' lead biologic.
Fibrocaps, a dry powder topical formulation of fibrinogen and
thrombin, is being developed to halt bleeding during surgery.
In the pivotal FINISH-3 study, Fibrocaps met all primary and
secondary hemostasis efficacy endpoints in four separate surgical
indications - spinal surgery, hepatic resection, soft tissue
dissection and vascular surgery.
The Medicines Co. believes these results will support
regulatory filings in the U.S. (first quarter of 2014) and the EU
(fourth quarter of 2013). Fibrocaps, if approved, may have an
advantage over existing products, as it can be used at room
temperature and does not require thawing before use. The
Medicines Co. believes that Fibrocaps peak sales could exceed
$300 million provided it gains approval in major markets.
With The Medicines Co. deciding to exercise its option, all
outstanding equity of ProFibrix was acquired for an upfront
payment of $90 million. Additional payments of up to $140 million
may be made on the achievement of U.S. and EU regulatory
approvals and sales milestones.
This acquisition makes strategic sense - the successful launch
of Fibrocaps will allow The Medicines Co. to strengthen its
position in the hemostasis market. Moreover, the company will be
able to leverage its activities in surgery centers in the U.S.
and speed up its entry in Europe.
We note that The Medicines Co. has an agreement with
) for marketing Recothrom, an FDA approved recombinant thrombin
used as a topical hemostat to control non-arterial bleeding
during surgical procedures.
The Medicines Co. currently carries a Zacks Rank #4 (Sell). At
present, companies like
) look well-positioned with both being Zacks Rank #1 (Strong Buy)
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