Company Enters Growth Phase in Hospital Market with Support of Deerfield
Acquisition to Augment Company’s Core Antibiotic Portfolio
MORRISTOWN, N. J. -- Melinta Therapeutics, Inc. (“Melinta”), a commercial-stage antibiotics company, announced that on June 4, 2020, it entered into a definitive merger agreement with Tetraphase Pharmaceuticals, Inc. (“Tetraphase”) pursuant to which Melinta would acquire Tetraphase, through a tender offer, for an aggregate of $39.0 million in cash, plus an additional $16.0 million in cash potentially payable under contingent value rights (“CVRs”) to be issued in the proposed acquisition. Closing of the transaction is subject to specified closing conditions and is expected to occur in the third quarter of 2020, at which time Tetraphase will become a privately held company of Melinta.
In April of this year, Melinta became privately owned by affiliates of the healthcare investment firm Deerfield Management Company, L.P. (“Deerfield”), resulting in a well-financed and strongly positioned hospital-focused company. In partnership with Deerfield, the Company announced plans to enhance its portfolio with the addition of commercial and late-stage pipeline candidates in support of its mission of serving the critical needs of patients in the hospital and hospital ecosystem.
Through this acquisition, Melinta will enhance its commercial portfolio with XERAVATM (eravacycline), a novel tetracycline approved by the U.S. Food and Drug Administration and the European Medicines Agency. Once the transaction closes, Melinta will have a portfolio of five complementary marketed antibiotics: VABOMERE® (meropenem and vaborbactam), ORBACTIV® (oritavancin), BAXDELA® (delafloxacin), MINOCIN® (minocycline) for Injection, and XERAVATM.
“This transaction represents the first step towards leveraging our infrastructure and expertise to grow Melinta’s hospital-focused business,” said Jennifer Sanfilippo, Interim Chief Executive Officer. “We are particularly excited by the addition of Xerava, a key addition to the hospital anti-infective armamentarium. The combined Melinta and Tetraphase infectious disease product offerings and synergies will significantly enhance our ability to serve the critical needs of patients by delivering a robust portfolio of treatment options addressing serious and potentially life-threatening bacterial infections, including those caused by antibiotic-resistant pathogens.”
Antimicrobial resistance occurs when microorganisms change with exposure to antimicrobial drugs. The Centers for Disease Control and Prevention (“CDC”) has identified antibiotic resistance as one of the biggest public health challenges of our time. According to CDC estimates, over 2.8 million people acquire drug resistant infections each year in the United States, 35,000 of whom die as a result. Additionally, many medical advances, such as joint replacements, organ transplants, and cancer therapy, are dependent on the ability to fight infections underscoring the importance of appropriate and effective antibiotic use in the hospital.
Paul Hastings served as legal counsel to Melinta with respect to the transaction.
Contact Information:
Melinta Therapeutics
Susan Blum
(312) 767-0296
info@melinta.com
