The Medicines Company
) continues to work on expanding and strengthening its pipeline.
In line with this goal, the company acquired Rempex
Pharmaceuticals, Inc., a company with a focus on the development
of treatments targeting multi-drug resistant gram-negative
The acquisition terms included an upfront payment of $140
million to Rempex equity holders. Moreover, The Medicines Co.
will make payments amounting to $334 million depending on the
achievement of development and regulatory approval milestones
($214 million) and commercial milestones ($120 million).
Deal Strengthens Pipeline
With this acquisition, The Medicines Co.'s portfolio now has
anti-infective assets like Carbavance, Minocin IV and RPX-602 in
its portfolio. The company has also acquired a preclinical
developmental program of novel candidates. Carbavance is the lead
pipeline candidate at Rempex and is scheduled to enter pivotal
studies next year - a new drug application (NDA) could be
submitted in 2016.
Minocin IV will be marketed by The Medicines Co. in the U.S.
for resistant infections due to acinetobacter (multi-drug
resistant gram-negative bacteria that is a growing problem across
the world). Acinetobacter is mainly prevalent in intensive care
units. Meanwhile, a regulatory application for RPX-602, an
improved formulation of Minocin IV, will be submitted for
approval in the U.S. next year.
This acquisition is in-line with The Medicines Co.'s efforts
to build out its anti-infective portfolio. The acquisition brings
medium as well as long-term operational and strategic value. The
Minocin IV sales opportunity will allow the company to build
relationships with the anti-infective community ahead of the
launch of oritavancin, which could occur next year. The Medicines
Co.'s shares were up 3.15% on the acquisition.
The Medicines Co. is a Zacks Rank #3 (Hold) stock. Some
better-ranked stocks include
Vanda Pharmaceuticals, Inc.
Acorda Therapeutics, Inc.
). While Actelion and Vanda are Zacks Rank #1 (Strong Buy)
stocks, Acorda is a Zacks Rank #2 (Buy) stock.
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