Melinta Therapeutics’ $1 Billion Acquistion of Infectious Disease Business from The Medicines Company

Willkie and Cadwalader, Wickersham & Taft LLP advised on the deal

Melinta Therapeutics, Inc. (NASDAQ:MLNT), a commercial-stage company developing and commercializing novel antibiotics to treat serious bacterial infections, announced that Melinta and The Medicines Company (NASDAQ:MDCO) have entered into an agreement pursuant to which Melinta will acquire the infectious disease business from The Medicines Company. This includes three marketed products: recently approved and launched Vabomere (vaborbactam/meropenem), and established commercial products Orbactiv (oritavancin) and Minocin IV (minocycline). Under the terms of the acquisition agreement, the purchase price consists of (i) $165 million in cash at closing, (ii) the issuance to The Medicines Company at closing of shares of Melinta common stock equal to $50 million divided by 90% of the trailing 10-day VWAP ending 3 trading days prior to closing; (iii) fixed payments of $25 million following each of the twelve and eighteen month anniversaries of the closing date, and (iv) payment by Melinta to The Medicines Company of certain royalty payments, based on tiered net sales of the acquired products in certain jurisdictions.

The acquisition positions Melinta as a focused pure-play antibiotics company. Peak sales potential of the portfolio post-closure is expected to exceed $1 billion.

Melinta Therapeutics, Inc. is dedicated to saving lives threatened by the global public health crisis of bacterial infections, through the development and commercialization of novel antibiotics. Melinta’s lead product is Baxdela, an antibiotic approved by the FDA for use in the treatment of acute bacterial skin and skin structure infections (ABSSSI). Melinta also has an extensive pipeline of preclinical and clinical stage products representing many important classes of antibiotics, each targeted at a different segment of the anti-infective market.

Willkie represented Melinta with Gordon Caplan (Picture) and Sean Ewen and included partners Jeffrey Goldfarb, Thomas Meloro, Michael Katz and Anthony Carbone; counsel Daniel Mun and Jonathan Konoff; associates Ted Powers, Erin Kinney, Halie Klein, Rose Ohanesian, Isabel Araujo, Alexandra Awai, Rachel Dooley, David Blassberger, Richard Hevier, Yaniv Maman, Paul DeTurk, Andrew Marmer; law clerks Augustine Donati, Katherine Dorris, Yoon Ho Jung and Osvaldo Kock and due diligence attorney Marta Ferrari.

The Cadwalader team is led by Corporate partners Gregory Patti, Andrew Alin and William Mills, and includes Corporate associates Tyler Carson, Lindsey Kister, Peter Bariso, Gianna Sagan, Winne Chen, Victoria Saunders and Timothy Ormsby, senior attorney Matthew Sadofsky and special counsels Braden McCurrach and Daniel Raglan; Employee Benefits and Executive Compensation partner David Teigman; Tax partners Linda Swartz and Edward Wei; and Finance partner Jeffrey Nagle and associate Michael Lynch.

 

Involved fees earner: Gordon Caplan – Willkie Farr & Gallagher; Sean Ewen – Willkie Farr & Gallagher; Daniel Mun – Willkie Farr & Gallagher; Albert Theodore Powers III – Willkie Farr & Gallagher; Erin Kinney – Willkie Farr & Gallagher; Halie Klein – Willkie Farr & Gallagher; David Blassberger – Willkie Farr & Gallagher; Richard Hevier – Willkie Farr & Gallagher; Jeffrey Goldfarb – Willkie Farr & Gallagher; Thomas Meloro – Willkie Farr & Gallagher; Alexandra Awai – Willkie Farr & Gallagher; Rachel Dooley – Willkie Farr & Gallagher; Michael Katz – Willkie Farr & Gallagher; Rose Ohanesian – Willkie Farr & Gallagher; Isabel Araujo – Willkie Farr & Gallagher; Anthony Carbone – Willkie Farr & Gallagher; Yaniv Maman – Willkie Farr & Gallagher; Jonathan Konoff – Willkie Farr & Gallagher; Gregory Patti – Cadwalader Wickersham & Taft; Andrew Alin – Cadwalader Wickersham & Taft; William Mills – Cadwalader Wickersham & Taft; Tyler Carson – Cadwalader Wickersham & Taft; Lindsey Kister – Cadwalader Wickersham & Taft; Peter Bariso – Cadwalader Wickersham & Taft; Gianna Sagan – Cadwalader Wickersham & Taft; Matthew Sadofsky – Cadwalader Wickersham & Taft; Braden McCurrach – Cadwalader Wickersham & Taft; Daniel Raglan – Cadwalader Wickersham & Taft; David Teigman – Cadwalader Wickersham & Taft; Linda Swartz – Cadwalader Wickersham & Taft; Edward Wei – Cadwalader Wickersham & Taft; Jeffrey Nagle – Cadwalader Wickersham & Taft; Michael Lynch – Cadwalader Wickersham & Taft;

Law Firms: Willkie Farr & Gallagher; Cadwalader Wickersham & Taft;

Clients: The Medicines Company; Melinta Therapeutics;