NEW YORK, Jan 12 (Reuters) - The Medicines Company (MDCO.O) said on Monday it has agreed to pay at least $42 million to acquire Targanta Therapeutics Corp TARG.O, which is developing an antibiotic to counter infections, such as the deadly MRSA, in hospitals.
Targanta shareholders will receive $2.00 in cash up front for each common share tendered, or approximately $42 million, The Medicines Co said.
Targanta shareholders may also receive additional cash payments based on specified regulatory and commercial milestones. They will get $1.20 per share if the Food and Drug Administration approves a new drug application for oritavancin for cSSSI (complicated skin and skin structure infections) using a single dose infusion.
If FDA approval does not include single dose infusion labeling, this payment is reduced to 50 cents per share, the company said.
The Medicines Co has agreed to commence a tender offer to acquire 100 percent of Targanta’s outstanding shares.
Targanta’s lead product, oritavancin, is an innovative antibiotic with potent bactericidal (killing) activity against a broad range of gram-positive bacteria including staphylococcal strains with resistance to methicillin (MRSA) and vancomycin.
“Oritavancin has the potential to provide important patient outcome and economic advantages for hospitals,” said Clive Meanwell, chairman and chief executive of The Medicines Co.
The growing hospital market for gram positive infections in the U.S. alone reached $1.1 billion in 2007, he said.