The Medicines Company
) recently entered into an agreement with Dutch company,
ProFibrix B.V., under which it will receive an option to purchase
all the outstanding capital stock of the latter. The option may
be exercised by The Medicines Co. once it reviews results from an
ongoing phase III study being conducted with ProFibrix' lead
Terms of the Deal
Under the agreement, The Medicines Co. will make an upfront
option payment of $10 million to ProFibrix. Once the company
decides to exercise its option, it will make an uprfornt payment
of $90 million and purchase all the outstanding capital stock of
ProFibrix. Additional payments of up to $140 million may be made
on the achievement of US and EU regulatory approvals and sales
milestones. However, if The Medicines Co. opts to terminate the
deal, it may do so without having any further obligations.
The deal depends on the outcome of the ongoing phase III
study, FINISH-3, being conducted with Fibrocaps, which is a dry
powder topical formulation of fibrinogen and thrombin. The
candidate is being developed to halt bleeding during surgery.
FINISH-3 is being conducted in surgical patients with mild to
moderate surgical bleeding with results due in the third quarter
of 2013. Positive results from this study would support
regulatory filings in the US and the EU.
Once the phase III results are out, The Medicines Co. will
review the same and decide whether it would like to exercise its
Fibrocaps, if successfully developed, 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. said that
phase II results have shown Fibrocaps to be highly effective as a
This deal makes strategic sense - the successful development
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 US 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 #3 (Hold). At
present, companies like
) look well-positioned with both being Zacks Rank #1 (Strong Buy)
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