Deerfield Supports Melinta Therapeutics Acquisition of The Medicines Company's Infectious Disease Business with a $240 million Commitment to Melinta and a $100 million Commitment to The Medicines Company
NEW YORK, Nov. 29, 2017 /PRNewswire/ -- Deerfield Management Company announced today it has committed to provide up to $240 million in debt and equity financing to Melinta Therapeutics (NASDAQ: MLNT) and up to $100 million in debt financing to The Medicines Company (NASDAQ: MDCO) in connection with Melinta's acquisition of the infectious disease business from The Medicines Company. The acquisition includes the purchase of global rights for Vabomere, Orbactiv and Minocin IV and the business unit supporting those products.
Upon the closing of the acquisition, Deerfield will provide $190 million in debt and equity funding to Melinta. Furthermore, Melinta will have the option to draw up to $50 million of debt within 24 months of the closing of the transaction subject to achieving certain sales thresholds. In addition, Deerfield has agreed to provide up to $100 million in drawable debt financing to The Medicines Company. These financings are subject to the terms and conditions of the commitment letters entered into by Deerfield with each of Melinta and The Medicines Company.
"We are proud to be Melinta's partner as it emerges as a leading infectious disease company," stated Jonathan Leff, Partner of Deerfield. "This transaction is a credit to Melinta and The Medicines Company for their creative efforts to achieve a result that satisfies the strategic objectives of each company."
Dan Wechsler, Melinta's President and Chief Executive Officer commented, "Deerfield was critical to this transaction. Its flexible approach and deep understanding of the infectious disease market place enabled them to act quickly and to provide a customized financing solution to meet the needs of Melinta and The Medicines Company. We also benefited greatly from Deerfield's support and advice in the structuring and negotiation of the transaction."
About Deerfield
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy. For more information, please visit www.deerfield.com
Contacts
Deerfield Management Company
Karen Heidelberger, 212-692-7140
karenh@deerfield.com
SOURCE Deerfield Management Company
