Antibiotic developer Targanta Therapeutics is being bought out by The Medicines Co. for at least $42 million and a potential bonus based on the regulatory success of oritavancin. The Medicines Co. is commencing a 100 percent buyout offer of $2 per share up front with an additional $1.20 a share if the FDA OKs oritavancin for complicated skin and skin structure infections using a single dose infusion. Without the single dose infusion guideline, the added payout drops to 50 cents a share.
"Oritavancin is a well characterized Phase III asset. We believe the deal terms reflect a balanced investment to expand our product portfolio and we agreed to pay for the transaction with cash to avoid share dilution. The addition of staged payments provides Targanta shareholders additional value if milestones are achieved and mitigates risk for The Medicines Company," said CFO Glenn Sblendorio.
Oritavancin has been studied in two late-stage trials in the treatment of complicated skin and skin structure infections. Phase II trials examined efficacy and safety of a single dose infusion in cSSSI.
"The growing hospital market for gram positive infections in the U.S. alone reached $1.1 billion in 2007," said Clive Meanwell, M.D., chief executive officer of The Medicines Company. "We believe that oritavancin can become an important anti-infective for serious infections involving difficult-to-treat bacteria in difficult-to-treat hospitalized patients. Many of those critically ill patients are the same patients treated with our existing products."
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