Medicines Co to sell cardiovascular drugs to Italy's Chiesi
Tuesday, May 10, 2016
The Medicines Co said on Monday it has agreed to sell three of its cardiovascular drugs to Italy's Chiesi Farmaceutici SpA for up to $792 million, as the U.S. company looks to raise money for drug development.
Privately held Chiesi will acquire rights to Cleviprex, Kengreal and Argatroban, which are used to treat high blood pressure or prevent blood clots, the Parsippany, New Jersey-based company said as it reported first-quarter earnings.
Reuters, citing sources, had reported the deal on Sunday.
Medicines Co has been selling some of its approved medicines to finance the development of its promising pipeline of drugs, including two heart disease treatments.
"I think with the moves we have made so far, we have largely solved the cash flow question," Chief Executive Clive Meanwell said in an interview on Monday. "We can now aggressively pursue the next data sets for these research and development projects without concern about financing."
Meanwell said Medicine's Co's cash reserve was sufficient to cover research and development expenses for at least 12 months, and probably significantly longer.
Meanwell said the company would consider all options to unlock value in its remaining commercialized assets, including surgical care and infectious disease.
"The best way to grow their value isn't necessarily divestment," he said. Other options could include turning them into subsidiaries of a holding company or simply keeping them, he added.
In December, Medicines Co agreed to sell its hemostasis treatments to Mallinckrodt Plc (MNK.N) for $410 million.
The Chiesi transaction, which includes milestone payments, does not require Medicines Co shareholders' approval. It is expected to close early in the third quarter, the drugmaker said.
Angiomax, an anticoagulant drug whose sales have plunged after it lost patent protection in 2015, is not among those Medicines Co is selling to Chiesi.
Goldman Sachs Group Inc (GS.N) is Medicines Co's financial adviser for the deal, and Cadwalader Wickersham & Taft LLP is its legal adviser.
Source : reuters.com
